The City Council on Tuesday approved housing for up to 400 UTC students in a new four-story building to be constructed at the corner of McCallie Avenue and Central Avenue.
There was some opposition from nearby Fortwood residents along Oak Street, who said the tall structure would intrude upon the historic character of the neighborhood.
Developer David Hudson said he would work with the neighbors in trying to find an appropriate design for the section facing Oak Street. A condition is that the developers confer with residents on the design, though the neighbors do not have veto power.
The Planning Commission earlier recommended approval for the project by Mr. Hudson, Bob McKenzie and John Clark.
There will be a 300-car parking garage constructed as well on the 1.7-acre site.
There will be 110 "dorm-style" units.
New Home Missionary Baptist Church is at the location. Councilman Moses Freeman said it wants to move back to its origins in the East Lake/Fort Cheatham section.
The church, which will be torn down, was formerly occupied by the Chattanooga Bible Institute.