A children's playground area is set to be removed after one neighbour complained about the noise - before receiving a more than £1,000 payout.
The man said the multi-use games area at Hailey Park in Cardiff was causing a nuisance and having a "substantial impact" on his life.
In January, the Public Services Ombudsman ruled that Cardiff Council had not taken appropriate action to deal with the complaint and was told to pay £300 for the inconvenience caused.
The Ombudsman also concluded that if the issue was not resolved within a period of eight weeks, the council should pay the resident £75 a week until it was.
It therefore meant that by June, the homeowner had already received £1,200.
The man said he had been dealing with the noise issue from the park for 10 years.
"From the very start of my complaint, I was always trying to find an alternative arrangement that would not affect children's opportunity to play and not affect any other residents in the same way that we have been affected," he told the BBC.
"A resolution is now being looked at, with new, better equipment in a more suitable location."
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The man complained about noise coming from the games area at Hailey Park, Cardiff
|Residents and users of the park expressed their concern at the man's payout.
Paul Rock, of community group Friends of Hailey Park, said: "It seems a real shame that public money is going to an individual in these circumstances.
"I would rather that wasn't the case. I'm sure Cardiff Council can ill afford to hand over £300 a month to a private individual."
A Cardiff Council spokesman previously said: "Initial engagement with local school children and information sharing with the wider community will begin shortly, with a view to resolving the noise issue and delivering improved facilities for the community as quickly as possible.
The council has now unveiled plans for a new play area at Hailey Park
|CARDIFF COUNCIL
"In the meantime, the Council has agreed to comply with the recommendations set out by the Ombudsman."
The council has now unveiled plans for a new play area at the park in Llandaff North, which it said will be placed around 50 metres away from homes to meet "community needs".
It said: "In order to balance the needs of all members of the community and following assessment by independent acoustic engineers the new facility will be located between the children’s play area and the tennis courts, approximately 50 metres from residential homes."
The council said the new play area will be placed around 50 metres away from homes
|CARDIFF COUNCIL
The new facility will feature a practice area for a range of sports including hockey, rugby and football, alongside a seating area.
The local authority confirmed last week that the existing multi-use games area would remain open until the new facility is completed but will then be removed and returned to grass.
Cabinet Member Councillor Jennifer Burke said: “I’m really excited to see these plans for Hailey Park become reality.
"After some well-documented issues, being able to ensure opportunities for play in the park are maintained and deliver a new facility that offers so much more than is currently available for local children to enjoy, is a really positive outcome."