The City of Stirling is assessing the $25 million application as part of a report to be submitted to a Joint Development Assessment Panel (JDAP) in July.
The Juniper Chrystal Halliday aged care facility has been on the site since 1971 but residents said they had invested in the area unaware of the potential for the building to double in height.
Gladman Way resident Alison Gibbons said local residents were not opposed to development but believed four-storeys would negatively impact the local area.
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READ NOW"Four storeys does not comply with residential codes and is far too high in a quiet, low residential family orientated street," she said.
"The value of all homes and surrounding properties will be devalued instantly.
"People bought in this pocket with the belief that they were safe from development and high rise, only to find this is not the case."
Ms Gibbons said she had received more than 100 responses from local residents against the development.
"People who have bought in this area generally purchased here so that they were in a quiet residential area for their families, and to have peace and privacy," she said.
Ms Gibbons said parking on the street was already at a premium and a major development would only contribute to the issue.
The applicant report said the redevelopment would provide improved facilities to meet the needs of residents. The development was advertised for public comment on Friday for 21 days.