Protesters are expected to rally outside of Vancouver's city hall Thursday night as council debates a controversial proposal to allow taller buildings in historic Chinatown.

The proposal will concentrate five high-rise apartment buildings in a three block area of Main Street from Keefer to Union. Maximum tower heights would be raised to either 12 or 15 storeys.

Calling the neighbourhood "fragile," 34 community groups, including community associations, unions, faith groups and housing co-ops, have endorsed a resolution against the development.

Wendy Pedersen, who has been fighting the proposal for the last three years, hopes that city hall will cancel the height increases altogether.

She believes new market condo developments will displace low income residents in Chinatown and the neighbouring Downtown Eastside because it will force up rents in the area.

"This is the death knell of Chinatown – the authentic, non-tourist Chinatown," she told ctvbc.ca in a telephone interview.

"The towers are going to be like dropping a bomb on the south side. It's going to squeeze low income people out."

Pederson says several of the towers will replace the small Chinese grocery shops on Main and Keefer streets -- businesses that make up the core shopping district for low income people.

"Seniors come to this area with their bus passes to shop and those areas. It's the heart of the neighbourhood," she said.

Jordan Eng, the vice-president of the Vancouver Chinatown Business Improvement Association, says the business people in the area, as well as cultural and heritage groups are in favour of the project.

But 26 local store owners have signed a letter opposing the new developments.

Agnes Li, who owns a small store on Pender Street, said she's afraid the condos will increase the cost of her taxes.

"Small businesses like us don't get subsidies like London Drugs [at Woodwards] does. We need the City's support," she said in a statement issued to media.

Claudia Li, who collected signatures in the community, said many people she spoke with want more local input into the project.

The signed letters will be delivered to city council Thursday night as groups plead their case.

Groups opposing the project are asking the city to wait to build until a local area plan that takes into account the needs of residents is finished.

Two months ago, Coun. Raymond Louie, backed by Mayor Gregor Robertson, introduced a last-minute motion pushing for more community consultation on the project. The move came a day after an open letter from 29 academics criticizing the plans was delivered to council.

"We fear that this will lead to a further reduction of affordable housing in the surrounding area, particularly that of the residential hotels," said the letter, signed by professors from the University of British Columbia and Simon Fraser University.

"This will have a devastating effect on low-income residents and the continued vitality and viability of the neighbourhood as a whole."