The City Council has given their okay to the proposal to transform the Domino Sugar factory site.
Lawmakers on Wednesday voted overwhelmingly in favor of the deal following weeks of negotiations with the developers.
Council members wanted to ensure that there was a sufficient amount of affordable housing at the redevelopment site.
Mayor Bill de Blasio helped broker the deal which, according to City Councilman Stephen Levin, will build on steps already taken by his administration to keep affordable housing in the Williamsburg community.
The developer, Two Trees Management, has plans to include offices, retail and park space on the property.
Local residents say this could be a shot in the arm for a very expensive neighborhood.
"I guess it's a good thing, help people out that need housing instead of building all the big condos that move people out of the neighborhood," said one Williamsburg resident.
"Affordable housing is great to the extent that it really will be affordable housing for people in the neighborhood. You really don't get the opportunity for a lot of people to live in a neighborhood like Williamsburg," said another Williamsburg resident.
"I think the Domino factory getting affordable housing is a good deal, so long as it actually goes to people that need affordable housing. Other than that its a great site and it shouldn't be torn down," noted a third Williamsburg resident.
A spokesman for Two Trees Management released a statement that said, in part, "We hope Domino will become a model for thoughtful mixed-use development, with world-class design, affordable housing and new open space."