The YES! project in Rotherham, billed as the largest covered leisure, entertainment and sports destination in Europe, has received the approval of the Rotherham Metropolitan Borough Council.

In a cabinet meeting, the council approved the development agreement between the council and developer Oak Holdings, which will see Oak take over a 250-year lease for a 327-acre (132-hectare) site in the town.

The £350m YES! scheme is being created as the result of a joint venture between Oak, telecoms company BT, energy giant E.ON and construction firm Laing O’Rourke.

Facilities at the complex will include a 60,000 sq ft, 5,000-seat indoor arena, an extreme sports centre, a four-star resort hotel and spa, a three-star family-orientated hotel, an Olympic canoe slalom and a visitor attraction – likely to be developed in partnership with a theme park operator – as well as numerous bars and restaurants.

The indoor arena will become the new home of the Sheffield Steelers ice hockey team, while the extreme sports arena will be managed by Venture Xtreme UK, offering 32 activities including ice climbing, caving, climbing and aerial ropeways.

Designed by Architects CZWG and Holder Mathias, the scheme is expected to create around 3,000 jobs in the region.

Karl Battersby, the borough council's strategic director for environment & development, said: "This is a great step forward and we can now press ahead along with the developers and turn this fantastic vision into reality."