A developer wants to erect a six-storey building where the abandoned Woolworth's build on Water Street in downtown St. John's.A developer wants to erect a six-storey building where the abandoned Woolworth's build on Water Street in downtown St. John's. (CBC)

The City of St. John's is allowing a proposed $40-million development move ahead by exempting it from downtown heritage zone building restrictions.

A developer wants to build six-storeys of office and retail space where the old boarded-up Woolworth's building now sits on Water Street.

The builders are promising 450 parking spots and room for up to 600 employees.

On Monday, city councillors voted unanimously to lift the heritage restrictions. They said both parking and office space are badly needed downtown.

"It will contain retail space, it will contain parking and it will contain class A office space," said Coun. Frank Galgay.

Another councillor said the province's growing oil industry would require more office space "This kind of development will only help us in terms of growing the city," said Coun. Tom Hann

The proposed development would also increase tax revenues for the city.

"There'll be approximately $1.4 million in taxes for the city," said Coun. Bruce Tilley

City council still has to approve a final design before construction can begin.