The Martha’s Vineyard Commission has approved a proposed expansion of the Ocean Club restaurant in downtown Oak Bluffs. Owners Mark and Mike Wallace plan to expand the restaurant to include a second floor function hall capable of holding 500 people.

The restaurant plan was referred to the commission as a development of regional impact (DRI) after the town was threatened with a lawsuit by the owners of the Surfside Motel, who complained that increased noise from the venue would disturb their patrons.

During the commission’s public hearings on the matter, the Wallace brothers said that the venue could be used for weddings, live music, comedy acts or anyone else who wanted to book the space. The Young family, which owns and operates the adjacent Surfside Motel, feared that the new space would become a “nightclub.”

Included in the commission’s decision is a series of conditions that call for increased sound insulation including closing and sealing of soffits on the motel side, and a closing time of 12:45 a.m. In addition, before the Ocean Club holds any events, the owners will need to perform a sound study to determine acceptable levels of amplified noise outside the function hall and in the Surfside Motel rooms. After subsequent sound mitigation, if the Ocean Club fails a second sound study the owners will have to install sound-monitoring equipment.

The commission voted seven to three to approve the DRI with conditions. Voting in favor of the project were Bill Bennett, Eric Hammarlund, Christina Brown, Fred Hancock, Doug Sederholm, Linda Sibley and Brian Smith. Voting against the project were Camille Rose, Peter Cabana and Katherine Newman.