The new community center will replace the 5,000-square-foot City Park building originally built in 1987.
The one-story building with a modern architectural style will sit north of the Miners Hospital near the basketball and volleyball courts.
Park City Recreation Director Ken Fisher said construction will begin in fall 2025 and last about a year.
The Park City Council has already budgeted the estimated $15 million needed for the project.
On Wednesday the city planning commission took the final step and approved the conditional use permit for the new community center.
When complete, Fisher said summer camps will be able to take on 50 more kids, growing to support about 150 children. He said the larger space will free up room at the PC MARC, when some programs and fitness classes relocate to the new building.
The new community center will also have an outdoor patio and a community space for rent year-round.
City Park will get 28 additional parking spots in the new build along with electric vehicle charging stations and more than 30 covered bike stalls.
Fisher said the city will now finalize construction documents and find a contractor for the project. The goal is to break ground in August at the beginning of the school year.