The Pine City Council approved the rezoning of two parcels on the former Lakeside Medical Center property during a meeting earlier this month.
After previous attempts to purchase the property fell through, Adam Price Inc. stepped forward to purchase the property to turn it into dormitory-style housing for students of Pine Technically and Community College.
The parcels were originally zoned for one and two-family residential, which did not allow dormitory-style buildings.
The city rezoned it to mixed-use to accommodate the proposed housing.
According to Community Development Director Mike Gainor, rezoning is the first step in the process since developers will still have to meet the requirements of the shoreland and parking ordinances.