Oak Bluffs selectmen clashed this week over whether a plan to convert the former town library at the corner of Penacook and Circuit avenue into a pharmacy and affordable housing should be referred to the Martha’s Vineyard Commission for review.

The project has been spearheaded by the town affordable housing committee and its chairman Ronald DiOrio, who is also a selectman.

At the regular selectmen’s meeting Tuesday Mr. DiOrio argued that the project should not be referred to the commission for review as a development of regional impact (DRI). Mr. DiOrio said the plan already has been reviewed by the town planning board, affordable housing committee, Cottage City Historical Commission and building inspector. And he said because the project is a renovation of an existing town building, commission review is not required.

Others disagreed, including selectman Kerry Scott and Oak Bluffs business owner Amy Billings.

Ms. Billings, whose family has long owned the Western Auto store on Upper Circuit avenue, presented the selectmen with a petition signed by 33 people urging the MVC referral, to no avail.

Ms. Scott, whose business Good Dog Goods abuts the project, left her selectman’s seat and joined the audience to speak as a town citizen. She said the library project triggers multiple criteria on the DRI checklist requiring automatic referral to the commission. Reading from a statement, which Ms. Scott said she filed along with a disclosure form with the town clerk before the meeting under the guidelines of the state ethics commission, she said:

“I believe the old library redevelopment project has skipped an important step in our permitting process. As long ago as last August [of 2008] town officials and staff were aware the project required review by the Martha’s Vineyard Commission. To date, the project has not been referred. It needs to be. It is the responsibility of the building official to make this referral and we have received an opinion from the MVC that it requires referral.

“This is not optional, or discretionary, or something we can skip because town boards have reviewed the project.”

Ms. Scott noted the commission has powers exceeding local review boards, and suggested a referral might result in a better project. She said a review by the commission would be beneficial.

And Ms. Billings submitted her petition noting change of use, increase in intensity and a change to mixed use with residential and business, all criteria on the MVC DRI referral checklist. The petition also states neighbors are concerned about traffic and parking.

“There are a lot of people who feel they haven’t been listened to. That building right now is a mess; it is wide open for anyone to come along and walk right in . . . I want to know what will be done this year to close it up,” she said.

Mr. DiOrio said residents have had more than one chance to comment on the project. “There have been several advertised public meetings and abutters were notified. It has also gone to town meeting on three different occasions when funds were voted . . . there has been overwhelming support for this,” he said, adding: “The town entered into a contract with [a design firm], and the project will be substantially completed by the end of the year. Bids will be opened at a meeting of the affordable housing committee this week.”

Selectmen Greg Coogan and Kathy Burton made no comment, and in the end Mr. Coogan, the newly elected chairman of the board, moved to adjourn the meeting.

Contacted later, commission executive director Mark London said he did not know whether the commission would take steps to force the town to comply.

He said the commission recently created a compliance subcommittee, although for now the committee is charged only with looking at projects already reviewed by the commission and whether they comply with conditions of approval. Sometime in the future the committee may address the issue of referrals.

“For now we don’t actively go looking for projects that need to be referred,” he said.

Mr. DiOrio said last week that time is of the essence for the old library project. Two years ago, the town received a federal block for $443,654 through the Massachusetts Department of Housing and Community Development. If the town does not complete the project by the end of the current calendar year, it may have to return the money, he said.