The plans include the construction of a total of 93 new homes comprising a mixture of flats and houses as well as parking, green space and highway improvements.
The Council's planning officer said in the committee report (12-page / 426KB PDF) that the proposals would replace an "unsightly and incongruous industrial use at an important gateway to the City".
She said that bringing the site, which currently comprises a transport depot and workshops, into residential use was "considered more compatible with the residential character of the area".
The Council said that an affordable housing provision of 25% had been agreed following viability assessments which had found that the scheme would not be viable with a 35% provision in line with local policy requirements.
The site has been identified Council's local plan as suitable for housing development of up to 100 homes.
