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The final vote gives the green light to the 26-acre project that stretches over the MTA's rail yards in Manhattan.

Officials say 1,300 affordable housing units will be constructed, along with commercial, cultural, and public green space.

Mayor Michael Bloomberg says he is confident the project will attract commercial tenants.

"When the original requests for proposals for the yard were out there, there were three or four developers, each of whom had major tenants who wanted to move their corporate headquarters there,” Bloomberg said. “To the best of my recollection, not one of them has a new corporate headquarters and it's four years later and they need them even more. So I think this is going to be one of the great successes. This is the gold coast of New York City."

Meanwhile, the first phase of the Number 7 line extension project into the Hudson Yards is complete.

The Metropolitan Transportation Authority says a tunnel-boring machine broke through the 34th Street station cavern wall. Tunneling is expected to be finished by the spring.

Then, work will begin on station entrances and support facilities, such as ventilation and power stations.

The $2 billion project is expected to be completed in December 2013.