Approval has been granted for the $114.7 million development on the former Daily Liberal site.
Due to the high value of the plans, the Maas Group Family Properties development had to go through the Joint Regional Planning Panel.
The ten storey plans are comprised of commercial premises on the ground floor, two levels of car parking, levels three and four will be offices and the final four levels will be serviced apartments.
A swimming pool and gym facilities will be built on level six of the north tower.
When completed there will be 219 serviced apartments, 333 car parking spaces and 28 motorcycles spaces. There will be more than 3500 meters-squared of retail space and 5400 meters-squared of offices floor space.
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As part of the work, The Old Bank will be refurbished.
Despite objections based around the character of the development and traffic concerns, the JRPP gave it the green light.
At the JRPP meeting, one objector said they felt they were speaking "on behalf of the silent majority" when they raised concerns.
He said the building would overdevelop the site and was "overwhelmingly out of character with the streetscape"
Another speaker raised issues with the height and the traffic flow.
"I've put solar panels on my building and the height of the building will stop sunlight accessing my solar panels," he said.
But Maas Group managing director Wes Maas said the company had tried to get the best outcome for everyone. First and foremost was the community, he said.
"One of the speakers spoke about if it's detrimental to the community but we think it's far from that, it's going to strengthen our community and really be a focal point of Dubbo," Mr Maas said.
"We've aimed for a mixed use project which is highly successful in a number of our capital cities. We see ourselves as being market leaders in regional Australia and bringing something new. Obviously there's nothing the same or similar to this in Dubbo but there is in Albury, Wagga and other places like that."
Mr Maas said the company was thinking outside the square and all parts of the mixed-use project supported one another.
The single storey building previously used as a music shop will be demolished but The Old Bank will be used as a focal point.
"We're going to make it better than it is today," Mr Maas said.
The initial development was 11.6 metres higher. The shop top housing has been removed.
There was also initially a coach/bus parking area but it has also been taken out of the design.