A councillor has said the issues surrounding the KLIC building "will not be put to bed" unless an inquiry is carried out.
The leader of West Norfolk Council has said Covid-19 is the “single biggest and most difficult thing” the authority has had to deal with.
Council officials say they are opening up services following a government warning that anti-social activity may increase if rules are too restrictive.
The application was refused after the leader of the council had spoken in favour of it.
Concerns raised by committee members included crime, density, accidents and farm sprays.
A multi-million pound plan to stimulate the economy has also been revealed ahead of a meeting next week.
New proposals will be drawn up within weeks in a bid to help the authority manage the impact of the pandemic.
An MP has called for urgent reforms of gambling laws and regulation that he says is lagging behind development in the sector.
More than 30 homes are planned for the site, which is now used as a car park.
The Prime Minister endorsed a West Norfolk MP's message promoting the area's coast during a Commons exchange today.
Developers say their scheme would provide economic benefits at a time of uncertainty, but councillors are being urged to reject it.
Plans for housing close to the site of a former village pub will be considered next week.