Planning chiefs will visit the site tomorrow before returning to the town hall to make a decision on the building's future.
But Riverside councillors will urge them to defer their decision to give the collection of music production and graphic design companies based inside the building more time to put together a viable business plan.
A letter is being sent to Mr Collins, who owns the complex with fellow Genesis band members Mike Rutherford and Tony Banks, requesting he pulls the plug on the apartments.
Cllr Stephen Munby called the planning bid inappropriate and added that it undermined the flavour of creative businesses that had established themselves in the thriving Ropewalks area of the city centre.
He said: "We feel this application comes straight from the hands of an accountant, and Mr Collins isn't actually aware of all the great work being done on Parr Street.
"The building forms part of an interesting part of the city centre which we don't want to lose. There's already a lot of wine bars, but nothing like the hub of small creative industries which exist now."
Parr Street is the biggest recording studio outside London and has attracted music heavyweights New Order, Pulp and The Charlatans.
© Liverpool Echo