Councillors voted in favour of pursuing plans to extend the tram network from the city centre to the Royal Infirmary.
Councillors have been told to prioritise extending the network to Edinburgh's Royal Infirmary.
A bar owner in Leith says the suspended tram line and disruption is driving customers away from the area.
Unite the union described the payout as an "excessive golden goodbye" and called for Edinburgh city council to take action.
The tram project from Edinburgh city centre to the airport went over budget by £400m and was delivered five years late.
Lothian Buses and Edinburgh Trams have announced adult single fares are to go up from £2.20 to £2.40.
The detailed plans show Edinburgh's south suburban railway being used with a new connection to the existing route on Leith Walk.
A public consultation on plans to build a new tram line along a popular cycle route closes on Monday.
Trams works between Picardy Place and Haymarket will begin on Saturday 27 September.
