The Honolulu City Council voted Wednesday to approve plans for the 36-story Mana‘olana condominium-hotel tower at Atkinson Drive and Kapiolani Boulevard.

Mana‘olana Partners plans to build a 400-foot tower with 109 residential units and 125 visitor units, along with a street-level commercial plaza. The site across from the Hawai‘i Convention Center is currently home to a 7-Eleven, restaurants, bars and other stores.

The company sought approval to build higher, at a greater density — and with less parking than permitted in the site’s existing zoning for a condominium of up to 350 feet, with no hotel rooms.

The final version of Resolution 16-172 includes a compromise reached at a Zoning and Planning Committee meeting last month. Mana‘olana Partners promised $7 million in community benefits, including an affordable housing component in exchange for greater density and fewer restrictions.

The company will partner with a city or state public housing development agency to provide at least 20 rental housing units that meet affordable housing requirements within 1 mile of the proposed Ala Moana rail transit station, or contribute the monetary equivalent of the 20 rental units up to $3 million into the city’s Housing Development Special Fund.

At Wednesday’s meeting, Councilman Trevor Ozawa, who represents the area, introduced an amendment giving the developer a third option of building the 20 rental units. The amendment was approved.

“This project will transform an area of my district that I believe is in dire need of revitalization,” said Ozawa, chairman of the Zoning and Planning Committee. He said the development is anticipated to provide 540 full-time jobs per year during construction, as well as 250 full-time jobs after construction. “That’s a good thing for our community.”

James Ratkovich of Mana‘olana Partners said the company agrees with the final version of the resolution and would continue to meet with the community. Construction is slated to start next year, and the full build-out is scheduled to be completed in 2020, he said.

Housing advocates have argued that the developer should provide more affordable housing units. Some Council members also said Wednesday that there needs to be a more formal city policy on these types of projects. The Interim Planned Development-Transit permit for Mana‘olana — the first of its kind — could be used as guidance until the city formally establishes Transit-Oriented Development rules for the areas along the rail line.

Bob Nakata of Faith Action for Community Equality and the Housing Now Coalition said: “This is not a bad project, but we’re concerned that after many, many years … of advocating for affordable housing, the amount that has been produced has been pretty small. There is tremendous need for housing up and down the line and we really need to be addressing that all the way.”

Ayako Ancheta of Hawaii 5-0 Properties, which manages the existing buildings on the site, said the development would “clean up the entrance (of Waikiki) and give a much better image and experience as we drive through the gateway to paradise.”