RAW night club in Wellington Road got the go-ahead from licensing chiefs on Tuesday despite residents' fears it will add to existing problems of crime, disorder and nuisance.
The club will include a main bar, seating and dance area on the first floor and a quiet bar or VIP area on the second floor and will be able to open 6pm to 1.30am Monday to Saturday and 6pm to 11.30pm on Sundays.
Refreshments will be available during all opening hours and alcohol sales and entertainment have been licensed up to 1am Monday to Saturday and 11pm on Sundays.
Christopher Grunert, representing five objecting residents, claimed the application by RG Leisure Ltd should not even be heard as the company name was not included on the application. He said public notices on the premises and in the press had different dates for representations.
But Scarborough Council's licensing sub-committee decided this was not prejudicial as the dates only differed by one day and let the hearing proceed.
They also said the fact Mr Grunert was being employed by Absolute Leisure, a company that owns rival venues in the town, was not a factor that could be taken into consideration.
Michael O'Brian, representing RG Leisure Ltd said the applicants had listened to objections and made changes to the original plans including no longer using a third room as a VIP area.
Rob Russell of St George Security said trained door staff and increased police patrols ensure there is not a lot of conflict in the town's pubs and RAW night club will be no different.
Mr Grunert said his clients wanted the application refused and highlighted the case of one woman who lives near to the club and believes she will be kept awake by the noise.
He also said the Whitby Cumulative Impact Policy should not be ignored just because the application was made before it was introduced in January.
When asked if there was anything the applicant could do to satisfy the residents, Mr Grunert said: "It is the cumulative impact of opening new premises that concerns my clients and they feel it's too big a hurdle to clear."
Mr O'Brian said: "We have consulted widely, extensively and continuously with all relevant authorities and there have been no objections from any authorities."
Scarborough Council's licensing sub-committee took more than an hour to reach a decision on the club but said it was convinced the applicant had done everything possible to address residents' concerns.
The premises licence was granted subject to a number of conditions which include the club participating in Whitby's Pub Watch scheme, having 24 CCTV cameras and six door supervisors, using toughened glass on pint and half pint glasses and lowering its music before closing time. If all goes to plan, RAW will be open by mid-August.
Richard Nattriss, a director of RG Leisure, said: "We're delighted we now have our premises licence and look forward to giving Whitby a high class venue it so deserves."