Scarborough Council has granted planning permission for two new education establishments in the town.
The borough-council-backed Coventry University Scarborough Campus and Scarborough University Technical College (UTC) will be built on the Weaponness coach and car park.
Both applications require further approval from The Department for Culture, Media and Sport, but the council does not anticipate the decision to be called in.
More than 100 people objected to the plans but councillors felt the opportunity outweighed the short-term disruption of construction.
Coun Hazel Lynskey said: “I feel for the residents and understand there are many older people there. But I am an older person myself, and I feel I have a duty to ensure that our younger generation access to the best education possible here in Scarborough.”
The Provost of Coventry University, Craig Gaskell, said: “This is a once in a lifetime opportunity for the borough to secure a brighter future for its youth.”
UTC principal Tim Englefield, said: “In the next five years Scarborough will suffer a shortfall of around 2,000 engineering qualified workers.
“Our aim is to fulfil the need for industry-ready engineers.
“We will provide local employment and bring investment to the local area of around £10 million.”
Between them, the two establishments will provide opportunities for approximately 2,000 students from the age of 14.