Edmonton city council voted unanimously to allow a builder to turn Bonnie Doon Shopping Centre into a town centre.
The mall has struggled in recent years after Sears and Target left.
The builder, Morguard, proposed a project called Connect Bonnie Doon—residential buildings with more than 4,000 units, stores at street level and green spaces.
Morguard said the project will take 20 to 30 years to be fully built.
Construction could start by next spring, likely along 83 Street near the Bonnie Doon LRT station.