Infrastructure works at York Central, UK, has received the approval from the City of York Council’s planning committee.
Initial clearance works have already begun at the site with construction set to start early next year.
The York Central project involves the redevelopment of a brownfield site that will be transformed to include 2,500 new homes.
The project also involves up to 1.2 million square feet of commercial development and improved visitor access to the National Railway Museum.
Additionally, a new bridge over the East Coast mainline railway, new cycling and pedestrian routes, drainage systems, and a new public park are planned to be developed as part of the project.
However, the plan to convert the Leeman Road tunnel into a one-way carriageway as part of the project has been criticised as many believe that it would aggravate existing congestion problem.
The development project is expected to result in the creation of approximately 6,500 new jobs and offer a £1.2bn boost to the economy.
Homes England and Network Rail have backed the site development through land acquisition and master planning and will also supervise the infrastructure works.
The infrastructure works will be supported by £77m in government funding.
The investment was first announced in the March 2020 Budget and confirmed later in August.
Homes England chair Peter Freeman said: “York Central is one of the most important brownfield sites in the country and this exciting project will create homes, jobs, and a better visitor experience for the city.
“Starting work on the infrastructure brings this development much closer and we look forward to working with all the project partners on behalf of the government to unlock this challenging site.”
City of York Council leader Keith Aspden said: “This is another vital step towards delivering the York Central scheme and unlocking a £1.16bn boost to our economy, including a new generation of jobs and hundreds of affordable homes when York needs it most.”