Douglas Council is supporting the development of the '20-minute neighbourhood' provided it meets two conditions.
Despite objections by councillors about parking issues in the area, which is around Westmoreland Road and Demesne Road, the first condition is a payment to the council if the Manx Development Company cannot improve community spaces.
The other condition is for revisions by the Department of Environment, Food and Agriculture and Highways to be approved.
Council leader Clare Wells said during the meeting the council should be looking for ‘alternatives’, to the problems raised because ‘that’s our job’.
Multi-storey car parks and changes to parking permits and disc zones were raised as solutions.
Local authorities can comment on planning applications in their area. The planning committee decides, although decisions can be overruled by the Environment, Food and Agriculture Minister.