Centre City Development Corp., San Diego’s downtown redevelopment agency, has approved plans for a 364-room dual-hotel project on the former Fat City/China Camp restaurant site.

Developers GLJ Partners and Jonathan Segal said in a June 14 statement that the $40 million development, at Pacific Highway and Hawthorne Street, will incorporate the Art Deco-style façade of the former Top’s Nightclub, dating to the early 1940s. The project is expected to go next before the city’s Planning Commission.

Segal said by phone that developers have obtained necessary entitlements and are looking to move forward with construction in early 2013.

The project was previously proposed as a mixed-use residential development with apartments, which drew resistance from CCDC and the nearby Solar Turbines. The industrial firm and local business groups have expressed support for the revised project, calling for a 239,100-square-foot building with a standard hotel and an all-suites hotel, with a total of 364 rooms.

Plans also include two pools and spas, meeting rooms, gym facilities, retail and restaurant spaces, and basement garage parking.