In a late night vote, the Sacramento City Council voted 6-3 to approve the controversial McKinley Village project.
Around 200 people packed the council chambers Tuesday evening to voice their opinion on the infill development.
McKinley Village has been in the works for seven years. Around 330 single-family homes will be built on the 50-acre site enclosed by Capital City Freeway and railroad tracks.
Business leaders said the project will create more than 1,400 jobs and boost the economy by more than $200 million. They said it will also bring much needed housing to Sacramento.
There was strong opposition to the project from dozens of neighborhood associations. Residents of east Sacramento said the development will increase traffic in the surrounding streets because of limited access.
There are only two proposed entrances to McKinley Village for an estimated 3,500 vehicle trips a day.
"We just feel it's inappropriate to have two access points for an area that's landlocked to any additional other traffic," said Rob Findley, who opposes to the project.
"There's really not a need for it," Riverview Capital Investments' Megan Norris said. "Traffic works well, with mitigation, there's less significant impacts according to environmental analysis done by the city."
Given the green light, the developer plans to begin construction this summer.