Spark:York will stay until April 2022 – as the council backed plans to extend the project for a further two years.
Planning officers and the team at Spark have outlined extra measures to make sure the venue does not disturb its neighbours.
After 9pm, customers in the area closest to the residential Nelson’s Yard will be “managed to minimise the potential for disturbance”.
Noise restricting equipment may also be installed to cut out music if it is played above a certain volume.
The planning report says: “In terms of local distinctiveness and the city centre economy, the Spark development does have a positive impact; it provides a platform for emerging business and facilitates community uses.
“The council’s long-term intention, as part of the Castle Gateway project, is for alternative redevelopment of the site.
“This site sits within a later phase of the project and the council is currently working on development proposals for the site.”
Senior councillors will be asked to look at a redevelopment strategy for the site later this year, according to the report.