Proposals for an eco-business park, bungalows or Gypsy and Traveller homes have failed.
The plans have been put forward by TLC Group.
Cambridge City Council approved the redevelopment plans on Wednesday.
Objections had been raised over the impact of the development’s taller buildings on Cambridge’s historic skyline.
Mayor Dr Nik Johnson says £11m raised will fund buses.
The city council had concerns over road safety and the visual impact.
City councillors were given an update on the Babraham Road plans from CIP.
Reef Group has given more details of its plans for the site.
The Lib Dem opposition say those living in older council homes are being left behind.
Garage and parking space charges for tenants will also rise.
The city council move grants it extra protections.
The Labour mayor wants to fund bus improvements by tripling his portion of the council tax bill.
The estate could be redeveloped or refurbished under city council plans.
The use of herbicides on highways has been authorised again by the county council after complaints.
Council’s deputy leader says housing secretary’s vision will leave Green Belt ‘in tatters’
It will use some reserves to help fund its road improvement project.
New post-16 education facilities will be created.
It pledged there would be no repeat of the A14 tree deaths.
But the water company does confirm once-in-10-year storm spills won’t happen.
Bus franchising or enhanced partnerships also under consideration.