The tower, known as Phase 5, will be funded with $70.4m from developer Armada Hoffler and the city paying $18m for the parking garage through tax increment financing. An additional $1m in bonds would pay for upfront building works.
The city plans to lease one floor of the new tower, where it would house its Office of Economic Development, now located in the Armada Hoffler building.
Nine council members voted in favor of the project, with two against. Once the development agreement is approved, construction could start in February and be completed by July 2014.