McKinley Village, the controversial housing project planned for the east side of the city, is ready to start after approval last night from the Sacramento City Council. 

It was nearly midnight before the council voted 6-to-3 to approve construction of the Phil Angelides project without the Alhambra Boulevard car tunnel demanded by neighbors opposed to McKinley Village.

"Midtown's residential streets will see traffic increases from this project from day one," one woman opposed to the project said. 

Angelides says the tunnel idea would be cost prohibitive and effectively kill the moret than 330 home subdivision on a 50-acre parcel between the Cap City Freeway and the Union Pacific Railroad. 

Councilman Steven Hansen suggested the idea of having the city pay for the tunnel construction as a compromise, but opponents complained taxpayers should have to foot the bill.  

Construction is set to begin in September.