The move will place the land in the hands of Middlesbrough Development Corporation, a government agency tasked with revitalizing the region.
The Council considers a proposal to transfer Gresham land to businesses.
The town's £200 million master plan, developed by Impec and Buccleuch real estate, aims to advance the town's £200 million master plan, which includes a 200-bed hotel, 238 apartments and 450-bed PBSA.
Waits has been appointed contractor for the project.
Fairfield by Marriott is already discussing the opening of a 200-room hotel on the corner of Borrow Road near Union Street and Hartington Road.