The Westfield Park Development, accessed off Howard Fields Way, already has reserved permission for 80 homes to be built, and is asking the authority to approve the second to fifth phases of housing.
The plans would see 160 new homes added to the proposals, including 34 detached and 59 pairs of semi-detached homes and eight detached bungalows.
Recommending approval, planning officers at East Lindsey District Council said: “A variety of house types including bungalows have been proposed which are of an acceptable design and are appropriate in their relationships with each other and with existing residential properties.”
They praised amendments to the plans to deal with the impact on protected trees and said it satisfies a number of conditions already imposed.
However, Louth Town Council has objected to the plan, saying they are not what it originally supported.
They criticised “problems of over-shadowing” and said residents had not been properly informed –having reportedly been told by neighbours that they had not received letters informing them of the application.
The town council also raised concerns over an estimated 1,200 extra vehicles onto Grimsby Road, in addition to flooding, drainage, and a lack of bungalows.
Two nearby residents also raised similar concerns including overlooking and drainage.
The plans were originally given permission at outline stage in July 2016.
Developers Charterpoint Louth, J&M Howard, J Bradley and K Anderson, also have plans for a 70-unit care home to be built on the site, catering for those over the age of 55, as part of the plans.