The Planning Commission on Monday approved rezoning to allow three 20-story buildings next to U.S. 27 at the Eureka Foundry site.
A representative of the developer said four one-story foundry buildings, closer to Reggie White Boulevard, would be preserved.
Wrecking crews are currently knocking down the main portion of the foundry that had opened in 1902 and operated until recently.
The final decision will be by the City Council.
Only Matthew Lyle of the Planning Commission spoke against allowing the three towers. He said after he earlier took the same position there was "a rather large outpouring" from the public in agreement.
Chris Anderson of the mayor's office said 20 stories is not appropriate for every site, but he said by the downtown freeway "is the perfect location."
He said, "People are coming to Chattanooga and we've got to plan for it" with more density and height in the urban area.
Mr. Anderson said the Kelly administration supports tall buildings in certain locations, including a 20-story building site that was approved at The Bend.
Kaitlin Sims of LaBella and Associates said the three towers would take up "less than half" of the nine-acre site and that less tall building would be "staircased" from the towers toward Reggie White Boulevard and Main Street.
She said, "Depending on where you are located, I don't think we'll necessarily prevent anybody's view of anything. I don't think it will have a negative impact on our skyline."
Barry Payne, planning commission member, calld it "a marquee development" and moved for approval.
The Planning Commission staff had recommended denial, saying there are no buildings nearly that tall in that vicinity.