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Serbia's legislative body has passed a law that sets the stage for a controversial development project spearheaded by US President Donald Trump's family member Jared Kushner in Belgrade.

His firm Affinity Partners has planned to construct a premium hospitality venue and housing development on the site of the former Yugoslav Army headquarters.

The destroyed edifice, which was targeted by Nato troops in 1999 amid its intervention to stop the Serbian military operation in Kosovo, holds symbolic importance to many who see it as a monument and emblem of ongoing objection to the international coalition.

The Serbian Head of State Aleksandar Vucic, who has sought strong connections with Trump, has supported the plans in the face of demonstrations and constitutional disputes.

Last year, the Serbian authorities stripped the property of its protected status and agreed a long-term lease with the developer's firm, which had set out plans for a $500m project.

The ruling triggered demonstrations and initiated an probe into whether a Serbian official had forged records employed throughout the process to alter the property's classification.

During a conversation earlier this year, Head of State Aleksandar Vucic defended the initiative, saying "it's crucial to transcend the legacy from 1999".

He continued: "We are ready to build stronger connections with the US – I consider that is terribly important for this state."

The halted approval process culminated last week when Vucic's party – which holds a majority in the legislature – pushed ahead with a special decision on clearing the location and prevailed.

Dissenting politicians have described the outcome illegal, notably Aleksandar Jovanovic, who termed it as a "violation", and stated the historic site would be substituted with "gambling venues and Jacuzzis".

At the same time, liberal representative Marinika Tepic stated the government was jeopardizing the nation's heritage "to satisfy the former president".

The passage of the bill has additionally been questioned by design professionals, and comes subsequent to Transparency Serbia, an anti-corruption body, expressed concerns about publicly-endorsed initiatives.

Per local press accounts prior to his initial election run, Trump earlier explored constructing a hospitality property in Belgrade.

Last March, Kushner told reporters he was unfamiliar of his father-in-law's claimed earlier involvement.

The resolution to clear the way for the development occurs as the president's government attempts to sustain good ties with each of the United States and Moscow.

Serbia has been affected by the two the former president's economic policies and penalties on Russian interests in the state, comprising on its only oil-refinery, the primarily Russian Federation-held Nafna Industrika Srbije (NIS).