The Weinam Creek redevelopment has been given the green light as the state government releases the master plan for the precinct after a milestone land swap.
The master plan for the Priority Development Area includes transport upgrades and community services for the southern areas of Redlands and the Bay Islands.
It is also expected to create more than 700 jobs and generate almost $30 million for the local economy.
Redland Mayor Karen Williams said the new features were much needed in the community.
"...This project will transform Redland Bay into a vibrant waterfront precinct with restaurants, cafes, a supermarket, more parking, new walkways and more open space," Cr Williams said.
"When I am out and about in the south of the city, the community tell me how keen they are to see this project..."
The project has faced backlash from locals, with a petition by the Russell Island Development Association in 2021 to allow locals to appeal decisions about development changes
In 2019 a Redland Bay couple also voiced concerns the redevelopment would ruin their tranquil lifestyle.
Stage one of the project wrapped up in mid 2020, with the creation of more than 500 parking spaces at Moores Road, new pathways and a footbridge.
The next stage will involve better connections to the marina, lighting and pedestrian upgrades at Banana and Meissner streets, and upgrades for open spaces and parks.
The redevelopment was made possible by a land exchange between council and the state government.
Redlands MP Kim Richards said land at the ferry terminal was transferred to council in exchange for land on Meissner Street, to be used for the new satellite hospital.
"Our satellite hospital at Meissner Street in Redland Bay will deliver essential services for Queenslanders in our rapidly growing community," she said.
But there are some concerns the plans will leave bay islanders behind.
Russell Island Development Association president Ian Olsson said the approval was too little, too late, and suggested more parking was needed to accommodate both residents and visitors.
"There are absolutely benefits to the project," he said. "It's going to create hundreds of jobs and the multi-level car park will clear up the parking situation too.
"But when all of the residential parking is bought, it will not leave enough parks for the islanders.
"It doesn't fit the needs of the parking, or the shopping and will absolutely decimate the retail areas on the Islands."
Mr Olsson again called for a bridge between Russell Island and the mainland at Redland Bay, or a small, more frequent barge.
The Weinam Creek Master Plan is available on the Queensland Government website.
For more information about the Weinam Creek redevelopment project and to see a flythrough, visit Council's Your Say website.