The council received nine objections to the home being converted into a clinic for occupational therapy, speech pathology, social work and mental health.

Elected officials endorsed the plans on Monday evening.

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Councillor Andrea Metcalf supported the development and said permit conditions like hours of operation and regulation of workers on site would mitigate any concerns about traffic and noise from the site.

"I've checked this site on ample occasions and every time there has been ample parking on the street," she said.

Cr Metcalf said her observations backed up work done by council officers which predicted the street would be able to hold all vehicles the 12-space car park could not.

Council officers had previously said the development would bring an acceptable planning outcome and that concerns about onsite parking would be unlikely to hold up at the Victorian Civil and Administrative Tribunal.

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The clinic told officers many patients would use telehealth services and some clinicians' work would mean their appointments take place off-site.

"Even if all staff and clients ... and their families ... travel to the centre by car, it seems highly unlikely that the use would exceed the available car parking capacity and it would therefore be unreasonable to refuse the application on the basis of a shortfall of two car spaces," council officers said in a report tabled before the meeting.

Cr David Fagg said he was not worried about noise that could be generated at the former house given the nature of the proposed clinic.

"I would say that this will be no more, and probably much less, than if a family with children were to move in," he said.

The council endorsed planning controls that would give it a final say on whether new services like a general practitioner were employed at the clinic in the future.

Council officers had previously said that would allow the city to control potential changes that could impact Lily Street's amenity in the future.

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