Responding to questions about plans to convert the old town library on lower Circuit avenue into a mixed-use building with affordable housing and a new pharmacy, Oak Bluffs selectmen said this week that the project conforms with state regulations for public works projects.

In recent weeks, questions surfaced over why extensive work had been done on the old library with no site plans on file at town hall and no contractor yet chosen for the project.

The project also has not been referred to the Martha’s Vineyard Commission for review as a development of regional impact (DRI), even though it meets the criteria for referral on the commission DRI checklist.

Money for the project includes an August 2008 $445,654 grant from the state Department of Housing and Community Development, and $424,000 from the town Community Preservation Act fund.

Meanwhile, work has begun on the building, which has been out of use as a library since the fall of 2005. The interior of the building has been gutted, the roof has been replaced and exterior siding has been stripped. Plans call for a commercial space to be built on the ground floor, hopefully a pharmacy, and three units of affordable housing to be built on the second floor.

At the regular board meeting Tuesday, Oak Bluffs selectman Ronald DiOrio reiterated his view that the project does not need to be referred to the commission.

“This went to the board of selectmen and the Cottage City Historical District committee, and there is a consensus this is a project to restore an existing structure,” he said. “For as long as I can remember this town has needed a pharmacy, and there is a desperate need for affordable housing . . . this is a good project for the town.”

Town administrator Michael Dutton said a request for proposals for the old library project has been drafted, and a notice would be published this week in the Central Register, a weekly source for information about state, county and municipal contracts being put out to bid for design and construction. He said the return date for bids was June 4.

Mr. Dutton confirmed that town employees have done extensive preliminary work on the project, but he said the town hired the Island firm of Alwardt Carpentry to replace the roof. Mr. Dutton said the roof on the building was failed and required emergency repairs, which are allowed under state law without going out to bid.

He also said he was not aware of any plans to refer the project to the commission for review as a DRI.