The California Coastal Commission approved a permit to demolish the South Bay Power Plant in Chula Vista Thursday.
Demolition of the plant may take about a year and begin in late 2012, the Port of San Diego said.
Planning for the Chula Vista Bayfront Master Plan has taken more than a decade, but the Port of San Diego and City of Chula Vista reached terms for a financing agreement earlier this year.
Commissioner Dan Malcolm, who represents IB at port board meetings, said that at more than 550 acres, the master plan would be the largest development in coastal California.
The area where the plant sits now is scheduled to become a park and RV park. A conference center, hotel, homes and other properties will be part of the plan that spans more than 500 acres.
A website especially devoted to the master plan was launched last month.
The South Bay Power Plant began operations in 1960 and was decommissioned in 2011.