The City Council on Tuesday night approved rezoning for a new phase of the Waterside Development in East Brainerd that will add new retail space as well as 250 apartments upstairs.
Developer Ken Defoor said there will be two buildings on the section near Gunbarrel Road that are three and four stories tall.
He said Elam Street will be extended to Gunbarrel Road.
Mr. Defoor said he has offered to provide land where the city can build a roundabout at heavily-traveled Gunbarrel Road.
Residents of nearby Min Ton Street have expressed concerns about new traffic. St. Nicholas School is on the street.
There will be a 20-foot-wide linear park with a shared trail along Gunbarrel Road.
The rezoned site is 8.6 acres.
Mr. Defoor said the apartments would be ready by the middle or end of 2016. He said the city has traffic improvements to Gunbarrel scheduled to go in before that date.