The decision on whether to build flats and offices on the bank of the River Wandle was deferred at a Merton Council meeting.
Architects have drawn up plans for nine flats and 425sqm of office space at 12A, Ravensbury Terrace, on the Merton-Wandsworth border in Wimbledon Park.
But applicants asked for a deferral at a planning meeting on February 13 after the Environment Agency requested more information about the flood risk site.
Developers have been asked to explain whether the site provides flood storage, the structure of the river wall and emergency access to the site.
The contemporary-look development, with three, four and five-storey blocks, a ground floor car park and a plant room has received several objections.
Wandsworth councillors from across the border have raised concerns over lorry traffic, noise, damage to road infrastructure and danger to schoolchildren.
In a letter to Merton Council, Wandsworth Councillors Kim Caddy, Terry Walsh and Guy Humphries, from Southfields ward, said: "The increased volume of works traffic, in particular large vehicles, will cause an unacceptable level of disruption, noise, damage to road infrastructure and increased danger for residents and other pedestrians.
"There is a school located close by and the risk to small children walking and scooting is significant."
Banham Security, developers of an industrial site on the Wandsworth side of the river, have objected to the residential component of the housing, challenging its suitability to the area.
Occupiers of existing offices, home to a call centre, have also raised concerns about disruption to their work.
Raised on columns with London Stock Brick and large windows, architects hope the development will fit in with the surrounding industrial aesthetic.
Neil Milligan, planning officer for Merton Council, said: "The applicants for Ravensbury Terrace have requested the item is deferred and we have some responses from the Environment Agency.
“There are a number of matters to sort out still and officers agree that members should defer the application subject to that additional information being submitted."
To view the plans, enter application code 13/P2904 on the website.