Council planners claimed victory after securing a supermarket spin-off deal which could see a Birmingham canal restored.
Plans for a new Sainsbury store, shops and Life Sciences medical research campus at Selly Oak were approved unanimously by the city council’s planning committee.
It ended a two-month battle with developer Harvest over the Lapal Canal restoration and other commitments.
The company eventually agreed to chip in an extra £767,000, taking its total contribution to £4.4 million.
With a compromise on the canal, and further pledges on the design and site layout, objections melted away.
Planning committee members said they were delighted they had “played hardball” with Harvest and secured a better deal for the community.
Coun Barry Henley (Lab, Brandwood) said: “I was glad to see this come back to us in a much-improved form. It vindicates our stand over this.
“The appearance has been improved, the financial arrangements are improved, it is a much better scheme.”
And Coun Peter Douglas Osborn (Cons, Weoley), who had been an outspoken critic of the developer, said: “We were right to dig our heels in.”
The council’s director of renegeration Waheed Nazir had earlier advised councillors to support the revised deal, describing it as a “once in a generation opportunity” for the regeneration of the derelict Battery Park industrial site.
With the canal contribution increased, objections from the Lapal Canal Restoration Trust, were withdrawn.
Harvest, a partnership between Sainsbury and Land Securities, said the new supermarket, medical research campus, shops and bars would create about 2,700 jobs.
It said work to clear up the contaminated land would begin next year, with construction to follow early in 2016.
Project director Neil Carron said: “We’re delighted the planning application has been approved and our vision for Selly Oak can finally be realised.
“We’re confident our proposals will provide significant economic benefits and will revitalise Selly Oak.”