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The old Prince of Wales pub on East Milton Road is set to be turned into four houses, six flats and a Morrisons store.
Plans submitted to Gravesham council by Moat Homes say they will provide 20 car parking spaces - 10 for homeowners and 10 for shoppers.
The pub, next to Denton Fish Bar, was demolished about seven years ago but developers say a Morrisons store “has been deemed suitable by a number of large retailers as a sustainable location for an out of town centre which will bring back employment use to the site”.
English Heritage has voiced concerns over the idea as it is next to St Peter and St Paul’s church which is Grade II* listed.
The group said: “The church and surrounding graveyard are appreciated in uninterrupted, unchallenged and long established views along the East Milton Road.
"The proposals are likely to overshadow, rather than complement, the existing church.”
Gravesham council is expected to make a decision by February.