Tuesday night, Knoxville City Council approved a deal to help fund the South Knoxville waterfront development.
The $165-million dollar plan would bring new apartments and businesses to the area, with the old Baptist Hospital a key element in the future design.
Members approved first reading of a plan to use $22 million dollars in tax increment financing (TIF) to help fund the development.
Vice Mayor Nick Pavlis says the deal is the largest public private partnership in the city's history and it's one he hopes will be a catalyst to South Knoxivlle.
"Even with the workers coming in and starting construction, there will be an economic boom from that. When the end product is there, property values go up. South Knoxville becomes a much more valuable place in Knoxville," said Pavlis.
The former Baptist hospital property has been vacant since 2008.