There's another towering development planned for Ottawa's Little Italy neighbourhood which would again set the bar for the capital region's tallest building.

The Claridge Icon would be 42 storeys tall and stand at the corner of Preston Street and Carling Avenue if it gets approved.

"We see a great retail experience at the ground floor," said Neil Malholtra of Claridge. "We're looking at two to three office floors, and looking at 39 floors of residential units."

The building would stand where there was once a gas station, creating what Claridge said will be a signature entrance to Little Italy.

"It makes sense for it to become a point of intensification here," Malholtra said. "Also when you look at being on the edge of Dow's Lake and the UNESCO heritage site, I think there's an opportunity to do something really outstanding."

Many business owners along Preston Street said they're excited for the increase in population and customers the tower would bring.

"It will bring in a whole new population to sustain the new businesses that have come on our street, I think it's the way of the future," said Adriana David, owner of Piccolino Ristorante.

The area councillor said she's worried the tower would change the character of the neighbourhood.

"Historically this has been a neighbourhood of small houses," said Diane Holmes.

"It will be a canyon instead of being this low-rise interesting mixed commercial/residential area."

Claridge said it will be presenting plans to the city in the next few weeks, aiming for an opening in late 2016.

Another tower development is being planned for metres away – the SoHo Italiana was originally planned to be 35 storeys, but was reduced to 30.

That development by Mastercraft Starwood Group also has yet to be approved by Ottawa city council.

The tallest building in the capital region is the 30-storey Terrasses de la Chaudiere in Gatineau, with 29-storey Place de Ville in downtown Ottawa that city's tallest.

With a report from CTV Ottawa's Vanessa Lee