The £82 million development transforming eyesore office block Cavendish House will no longer feature a cinema and large supermarket, it has emerged.
People claim the Dudley landmark, visible from Duncan Edwards Way, is a blot on the town after being left boarded up and at the mercy of vandals.
The Portersfield development would redevelop the area near Dudley Bus Station but has yet to come to fruition.
Council bosses requested significant changes, focusing on new homes, including student accommodation to support Dudley College, despite it being billed as a retail development.
Dudley Council leader, Councillor Patrick Harley, says the authority did not want a cinema competing with the Showcase complex on Castlegate park.
He has asked developer Avenbury to scrap that part of the project.
A supermarket also planned will now also be smaller than originally envisaged.