There are already clubs in the area....for example SE1 on Weston Street (in the tunnel under the railway arches) and another in Stainer Street. There is also, if my memory serves me well, a club already in Crucifix Lane (again under the railway arches) which had few nights a couple of years ago but I haven't noticed it being open/used recently. Maybe they are trying to reactivate it if it's the same one that I am thinking about, close to the junction with Barnham Street.
As far as I can see that part of Crucifix Lane isn't very residential at all, although obviously there are lots of homes not very far away, but that is also the same for the other 2 clubs. On that basis I am guessing things may not look too different to the licencing authority so you'll just have to see what happens.
There's Jack's, isn't there? Not sure if it still runs, but it used to be open till about 6 am.
I sympathize with any local residents who feel wary about this development, but, as the previous poster implies, given the existence of other clubs in this locale, a strong case will have to be made for why an additional club is going to pose a significant problem for the fairly small number of people who live nearby.