Mayor Mark Lauretti said he has no issue with dense housing development taking place along Canal Street.

Some concerns have been raised about the number of residential units that might be allowed north of Bridge Street, with multi-story apartments and limited public parking.

“That’s what downtowns are designed for,” he said. “That’s what we do all over the world.”

Lauretti said he remains open to placing restaurants and retail sites in this area along the Housatonic River as well, but said a “critical mass” of people living there likely is needed before this becomes economically feasible.