A controversial hotel development in downtown St. John's moved through another step in the approval process at a city council meeting Monday evening.

On request from council, a revised plan for a hotel at the corner of Water and Prescott streets was submitted by architects on behalf of a numbered company.

The hotel presented in the plan is smaller than the original one unveiled in early July. The revised plan will see the hotel stand eight storeys from its front on Harbour Drive, south of Water Street, while the original plan was for the building to stand 11 storeys at Harbour Drive.

The city used computer-generated images to show how the developer's plan will change the look of Water Street and the view planes from different points in the city.

Coun. Keith Coombs said the generated images of what the 140-room hotel will look like will help residents make a decision when the plan goes to the public hearing stage.

"Unless, as I say I'm wrong, the vast majority of people will say, 'OK, this is OK for the downtown.'"

Coun. Shannie Duff said Monday night's vote to allow the plan to go on to the next stage only allowed the developer to prepare a land-use assessment report, or LUAR.

"Going to a LUAR is essentially saying, 'we as a council feel that this is acceptable, and now we're just going to hear what the public has to say.'"

The land-use assessment report is expected to take several months to complete. City council will then decide if it will hold public meetings on the hotel proposal.