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Battle of Mean Street is a quest received after the Battle of OsTown. It is part of the main story progression, and there is no known way to skip it.
When meeting with Oswald near the Walt Statue, he will mention the Wastelanders' wish for a Heart, and that the rocket can't be used to escape Wasteland without a heart. Mickey convinces Oswald to fight the Shadow Blot by blowing it up with the rocket. Afterwards, Oswald travels to Tomorrow City to fix the rocket, while Mickey starts getting rid of the Bloticles, beginning in Mean Street.
Mean street is plagued by just one Bloticle, sitting in the center of town, with four weak points. All of Mean Street's residents have gone into hiding, and Gus will not allow Mickey to enter any buildings until the Bloticle is destroyed. Standing guard are a Slobber, three Spatters, and a Spladoosh sitting idly by the Detective Agency. Once the Bloticle is destroyed, the Mean Street Repair Pin appears where it once stood. The residents of Mean Street will come out of hiding to congratulate and praise Mickey. The Ventureland projector will also begin working again, allowing the player to progress the story by going there.