The church was approved by the city planning commission Wednesday, the Tooele Transcript Bulletin reported. The commission approved another church about a year earlier on the same block.
Mayor Patrick Dunlavy said downtown needs retail businesses and restaurants, but the presence of the churches makes it difficult for anyone to get a liquor license.
State law requires businesses that serve liquor to be at least 600 feet of a church.
"We would like to have more retail downtown rather than churches," Dunlavy said. "But we realize that churches are within their right to set up where they have."