HOLYOKE —The City Council has granted a zone change that will allow owner Albert Babadzanova to proceed with plans to open a retail cannabis establishment at 40 Lyman St.

Babadzanov must still apply for a special permit with the city and receive approval from the Massachusetts Cannabis Commission to operate a retail marijuana shop.

Councilors voted unanimously Tuesday to change the building classification from Downtown-Residential to Industrial-General. The Lyman Street site was once home to the Franco-American Club.

Councilor Linda Vacon, who chairs the Ordinance Committee, said the zone change was an “interesting situation,” likely a form of spot zoning or not in keeping with the neighborhood’s overall character.

Vacon opposed “blanket zoning,” especially for a property only used for commercial purposes. “What we’re doing, to some degree, is returning it what’s its original zone was,” she said.

Ward 2 Councilor Terence Murphy, who was the lone no vote on the Ordinance Committee, had questioned the site’s proximity to School Services Diagnostic Center at 30 Center St. A city ordinance prevents a cannabis business from operating within 500 feet of a certified pre-K-12 school.

At a previous hearing, attorney Brian Shea, who spoke on Babadzanov’s behalf, said a certified pre-K to 12 school does not operate at the Center Street property.

Despite reservations, Murphy voted for the change during Tuesday’s regular session. All 13 councilors approved the new zoning designation.

Councilor Rebecca Lisi said the Industrial-General designation was appropriate large-scale cannabis companies opening in Holyoke.

“In this case, we’re turning a single parcel in a downtown residential neighborhood, into an IG to create the ability for this to go in there,” Lisi said. “That’s not how you do zoning. We want things to have logic and reason. Harmony is a good way to put it.”

Lisi favored particular cannabis businesses to operate in Downtown-Residential zones. She said the proposed retail shop shows a “need and interest” as a mechanism for downtown revitalization, but not met with the Industrial-General.

Councilor Joseph McGiverin agreed a need exists, but the zone change did not meet the spot zoning criteria.

“Spot zoning terminology is thrown out so easily in these chambers. It’s not spot zoning until something happened as determined. Often, it has to be determined in a court of law that a spot zone took place.”

McGiverin added that Holyoke’s economic map is “one giant spot zoning,” a downtown created to mix work and living.

“People invest in commercial properties in this city. We need that investment. Yet, we throw around that we can change your zone. We can make a Downtown-Residential because it’s good,” McGiverin said.

Councilor David Bartley said Babadzanov’s proposed investment would transform a “dilapidated, hole-in-ground” that’s been a neighborhood eyesore for years. “Once again, it proves that we made the right decision to put this in IG three or four years ago,” he said.

Bartley said Industrial-General helps communities that “sorely lacked any investment for decades.” He opposed attempts to “dilute” the Industrial-General designation, particularly in Downtown-Residential zones.

“It just shows that we made a thoughtful decision, those of us who supported it, and we’re proven right once again,” Bartley said.

Councilor Peter Tallman said, “Clearly the neighborhood wanted this project. The Ordinance Committee worked very hard on putting this together and listening to the people and to the project itself.”

He added, “It’s important we have people willing to invest in our community, especially in a neighborhood like that.”