Councillors have paved the way for a huge £35 million complex of private and student flats in Ecclesall Road.
Sheffield Council’s planning committee approved Hallminster Ltd’s plans to develop the site of a former car dealership near the old Wards Brewery.
The Sheffield developer said it will consider withdrawing its appeal against the council’s decision to reject a previous application because of its scale.
Dan Simpson, from Hallminster, said: “We are delighted that planning permission has finally been granted after all the twists and turns and we no longer have to take the case to a public inquiry.
“We are now looking forward to delivering a standout scheme that Sheffield can be proud of, which will regenerate the site and a wider area helping bring inward investment for the city, generating employment and other economic benefits.
“The design of the development is imaginative, top quality and appropriate for its surroundings which is in a great location.”
At its highest, the approved scheme will be 11 storeys. Four blocks will be built, comprising 144 private residential apartments, 190 student flats and space for five ground floor shops and businesses.
The previous, rejected scheme included a 12-storey block, which councillors thoughts was too high.
At Tuesday’s committee meeting, several residents said they thought the scheme was still too big.
Nick Hardy said: “The building will be twice as high as the surrounding buildings. We would like some continuity from the council.”
Mr Hardy said the development would overshadow ‘everything else’ in the area.
Aidy Dench said he would consider moving house if the plans were approved. He added: “If this goes ahead the change in scale will be its stand out feature.”
Councillors did take the height of the buildings into consideration, but broadly agreed with their officers’ assessment that a compromise had been reached.
Coun Roger Davison said: “This is a massive investment into Sheffield in and area that really does need that kind of development.
“I would hope the people that live in that area see that it may enhance the area rather than work to its detriment.”
Construction could now begin in the New Year. Hallminster said the scheme would create 300 jobs during construction along with 100-plus permanent jobs.
Last month councillors approved another huge student/private flat complex nearby, on the former Gordon Lamb car dealership site in Summerfield Street. The four-block scheme will also include shops, cafes and restaurants.