The Preservation Society of Asheville and Buncombe County has opposed the project, stating that 13 old homes on the property should be saved.
Earth Fare was mentioned as the possible downtown grocery store tenant.
The project calls for a mix of uses, includes space for artists, two restaurants and a 70-room hotel.
The Bier Haus project calls for the renovation of the building at 34 S. Lexington Ave., which is adjacent to Button & Co. bagel shop.
The Asheville Planning & Zoning Commission approved a slightly revised plan that calls for a 138-room hotel, 37 condos and about 1,100 square feet of commercial space.
The project is in the early stages of planning, but developers recently held a neighborhood meeting to introduce the project.
It's big: 161 single-family homes,188 duplexes, 36 condos, 4 live-work spaces and up to 15,000 square feet of commercial space.
Asheville city planners are pushing for more pedestrian- and bicycle-friendly connections for the $45 million mixed-use development.
The RAD Lofts project was first floated more than three years ago.