The cathedral has signed a deal with its exclusive contemporary music partner until 2030.
Councillors have approved plans which would mean if a venue closes it is not likely to be replaced.
Music venue owners say the area is the heart of nightlife in Birmingham which needs saving.
Newcastle City Council's licensing committee agrees to scrap the levy following a meeting.
The fund paid by some pubs and clubs covers extra security measures for revellers.
The club will have a license until the early morning and is expected to create around 60 jobs.
As Andy Burnham cuts venue business rates one of the UK's best-known music cities debates its future.
The genre has long had a cult following, but is now growing in popularity with younger clubbers.
West Midlands Police said the people running Oxygene in Queen Street were ignoring safety measures.
