The Shakedown festival will go ahead in Stanmer Park in September but the organisers have been told to find a new venue next year.
Despite objections by neighbours and park users Brighton and Hove City Council has decided to give landlord’s consent for the two-day event.
The council said: “The decision … comes after extensive consultation with representatives of Stanmer village, other interested stakeholders, all political parties, as well as the organisers of the Festival.”
Councillor Geoffrey Bowden, chairman of the council’s Economic Development and Culture Committee, said: “I think it would be disingenuous to ignore there were a number of aspects of last year’s Shakedown festival that could have been handled better by the organisers.
“These weaknesses have been publicly acknowledged by the organisers.
“The council will be building in robust conditions into the agreement to take account of those concerns.
“Another consideration in giving the festival the green light is the city’s reputation for hosting events appealing to the youth market and fostering local talent.
“Just as importantly though, local businesses benefit from the festival.
“Last year more than 50 local companies supplied contracts worth in excess of £250,000, meaning the local economy gains from the event.”
The festival will be held on Saturday 28 and Sunday 29 September with the second day intended to have a family focus, the council said.
If it goes ahead next year, it is expected to be at another location in Brighton and Hove.
The council added: “In response to residents’ feedback, changes to how vehicles enter Stanmer Park will be made.
“There will be regular reporting to the Stanmer Park stakeholders as well as ongoing input by Stanmer villagers.
“Also an on-site traffic management team will be present throughout the build up, breakdown and on the days of the event.
“Routes in the park will be protected with measures such as ‘metal roads’ and there will be a holding pen for large vehicles to avoid congestion.”