Plans will proceed to erect 37 new dwellings and industrial workshops on a parcel of land in Ripon that developers have acknowledged as a "challenging" site to build on.
Addressing the committee, an agent for applicants Prime Talent Ltd said ground conditions at 2 Hutton Bank had made it difficult to find a suitable plan to progress with.
Previously, 43 homes had been proposed for the site, which is currently occupied by former industrial workshops.
But the council stated it had issues with losing too much employment land; causing the applicants to rejig their design to include 37 homes and six 'light-industrial' workshops.
During debate, Coun Trevor Chapman quizzed council officers about whether they were satisfied that the workshops would not inconvenience surrounding residents who live adjacent to the area.
Officers confirmed that the type of light industrial work to be undertaken at the site would not pose a noise issue for neighbours.
Following that, councillors unanimously voted in favour of approving the development, awaiting a gypsum report to gauge the risk of potential sinkholes at the site.
At the same meeting, councillors rejected a proposal to build seven homes at Junipor Grove, Ripon.
Coun Mike Chambers had called the proposal in over concerns that it would result in a loss of land that could be used for employment, as well as fears that it was "cramming" houses into a small area.
Councillors voted against the proposal on design and amenity grounds, with Coun Bernard Bateman among those who spoke out against the move, stating the planned dwellings looked like "boxes".
A third proposal, for 35 homes on a field off Littlethorpe Road at Ripon, was withdrawn by applicants S Harrison Developments before the meeting.
Lachlan Leeming, Local Democracy Reporter