The new facility will house 6,000 students
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Major work could start on the regeneration of Gloucester docks before the end of the year.
City councillors gave permission on Tuesday evening for a new apartment block, shops and a multi-storey car park.
It follows a decision to allow Gloscat College to build a new £38m campus on land near Llanthony Priory.
Laurence Clark, of developers Crest Nicholson, said the work would totally transform the city's docks area.
Last month Gloucester City Council unanimously backed a scheme to move the Gloscat college from its current home on Brunswick Road to the docks.
Its new facility will be built near Llanthony Priory, and will be home to the college's 6,000 students.