The developer that’s built luxury apartment complexes from Wilton and Cheshire to New Haven is proposing a 235-unit complex near New London’s waterfront that would create a complete makeover for what’s considered the shabbiest road in the city.

New London officials are eagerly endorsing Spinnaker Real Estate Partners’ proposal as a way to draw some of the thousands of new employees being hired by nearby Electric Boat while recapturing a stretch of attractive waterfront at the marina.

But a contingent of longtime residents is fighting the plan, saying New London already is congested with traffic and rental housing. And the owners of one of Connecticut’s most popular shoreline lobster restaurants are fighting it, too, saying a series of four-story buildings with fifth-floor lofts would be too big.

“This is just a phenomenal opportunity for the city,” Mayor Michael Passero said. “This is a very successful developer deciding to invest in New London. It’s going to help so much with all the pressure on our housing market. Opportunities like this don’t come along every week.”

But the business that would be most affected is fighting the plan. Captain Scott’s, the harborfront seafood restaurant that draws enormous summertime crowds, argues that there won’t be enough parking and that pedestrian safety will become a problem.

“Captains Scott’s is opposed to this project as they feel it is too oversized for the site,” Matt Greene, the restaurant’s attorney, wrote in a letter to city hall. “As I have publicly stated, it is like putting 20 pounds of potatoes in a 10-pound sack.”

At issue is Hamilton Street, a block-long stretch of broken sidewalks, vacant and vandalized buildings, overgrown lots and what appear to be abandoned cars.

Turning from Howard Street, drivers could easily think Hamilton is just a squalid dead-end or a route to more decay. It makes a sharp left just before a rock pile, then continues across a long-unused rail spur before revealing Captain Scott’s and its huge deck on the marina.

Spinnaker Real Estate Partners wants to demolish ruined buildings on both sides of Hamilton Street and put up mid-rise apartment complexes with studios and one- and two-bedroom apartments.

The proposal includes adding a public walkway along part of Shaw Cove, a waterfront area that’s been fenced off for years.

This summer, Spinnaker tweaked its plans to accommodate worries from Captain Scott’s about access during the multi-year construction; Hamilton is the only way customers reach the restaurant other than arriving by boat at the marina.

But debate continued at a lengthy zoning commission hearing on Sept. 3, when Captain Scott’s representatives said they still have reservations. Hamilton is narrow for fire truck access, and the huge increase in pedestrians crossing the street would create safety risks, the restaurant said.

“We are not opposed to development in New London,” co-owner Susan Eshenfelder Tierney wrote on Facebook last week. “Our concern has always been making sure a project of this size does not compromise safe and reliable access to Captain Scott’s for our customers, employees, delivery trucks and emergency vehicles.”

Spinnaker will return Oct. 1 to address the concerns and complaints from the hearing.

Many city residents are enthusiastic about reshaping the look of Hamilton Street, but others have complained through social media that the hundreds of apartments would worsen traffic.

“These roads are not made for this many people, this is an old town with old narrow roads,” Paul Alfiero wrote on Facebook. “Pretty soon you’re not even going to be able to drive around here.”

Blair Young offered a different view, writing “We are in desperate need of more housing. Hope this gets approved.”

Passero said new housing is a vital need.

“At last count, the region is short 10,000 units. Electric Boat is hiring 8,000 people: Think of the impact to the housing market from that,” Passero told The Courant. “There are people commuting from New Haven and Hartford to work there.”

Connecticut College and other employers have been hiring as well, he noted.

Passero praised Spinnaker, which has an extensive Connecticut portfolio of large-scale apartment complexes. Its proposal for Hamilton would complete New London’s renovation of its Howard Street corridor, he said, and provide Captain Scott’s patrons — including many first-time tourists— with a better image of New London than what they see now.