A report published ahead of the session at Lynn Town Hall said a capital investment of more than £45 million was envisaged for the site.
And officials believe the scheme will deliver a return for the council of around £2.5 million, more than five per cent.
Lead officer David Ousby told the meeting: “It’s some way short of what a commercial developer would consider viable but it would still be viable and deliverable.”
The council intends to enter a contract with the construction firm Lovell for the development of the scheme.
And cabinet members formally approved both the submission of a new planning application and a capital funding allocation of £45.2 million for the site.
However, the measures still need to be approved by the full council when it next meets early next month.
The plan also includes proposals to spend around £1.7 million in what the report described as “optional environmental enhancements”, such as the installation of solar panels and air source heat pumps.
There are also proposals for lagoons and swales to help deal with surface water drainage issues, which officials said will offer benefits to wildlife but would reduce available open space.
The report warned that the alternative would be to spend nearly £100,000 on storage tanks.
It went on: “The loss of some trees will be unavoidable.
“However, trees will be replaced at a rate of three for one, which is additional to what would normally be expected for a development of this size.”
Council leaders have said they hope a new planning application for the area will be submitted in September, with a decision following early next year.
Up to 228 homes are currently envisaged for the site, compared to the 379 planned in the earlier scheme which also included the proposed development of land which is home to sensitive wildlife habitats.
However, Mr Ousby said the final number of homes would be fixed through the planning process.