The City Planning Commission voted in favor of rezoning the eastern portion of 125th Street, setting the stage for a final City Council vote on the 1.7 million-square-foot mixed-use complex.
The commission approved the project, which will include a mix of retail, restaurants, offices, and housing, by a vote of eight to one.
The proposed area extends between East 125th and 127th streets, between Second and Third Avenues.
The city has not yet selected a developer for the project, eliciting concern from local resident groups and the office of the president of Manhattan, Scott Stringer.
Developers Vornado Realty Trust, Thor Equities, and General Growth Properties have reportedly expressed interest in the project.
A developer will be selected before a vote by the City Council, which will likely occur in October.