Two neighboring Oak Bluffs businesses squared off at the Martha’s Vineyard Commission last Thursday over plans to expand the Ocean Club restaurant to include a second-story 500-person function hall. Surfside Motel owner Jeff Young claimed that sound from the expansion, which he characterized as a nightclub, would drive him and his family out of business. Ocean Club owners Mike and Mark Wallace argued that the issue would be more appropriately dealt with by the town. The often testy discussion left the commission wondering how much noise is too much in the downtown area and what role it will play in regulating the down-Island commercial districts.

The project was referred to the commission by the Oak Bluffs selectmen after the Youngs threatened to sue the town for failing to refer it. Selectmen Ron DiOrio and Duncan Ross have written to the commission to express their opinion that the matter does not rise to the level of a development of regional impact and could be best handled by town boards. The upstairs area of the building was an arcade until 2006, but has been unoccupied since.

The hearing began with a summary of the potential parking and traffic impacts of the expanded venue. Impacts on traffic would be minimal, said traffic consultant Charles Crevo, and parking in the already congested downtown area could be alleviated by a shuttle service for special functions and off-site valet parking. But when the discussion turned to noise mitigation and commission member Linda Sibley asked Mr. Wallace to supply detailed acoustic plans for the new venue including “every square inch architecturally, how will it be soundproofed and with what,” Mr. Wallace, who also serves on the Oak Bluffs planning board, showed his irritation.

“The town of Oak Bluffs has a sound bylaw that we are not allowed to violate,” he said. “I am in front of the Martha’s Vineyard Commission for an entertainment license. I’m not applying to the commission to use this space, I have a license to use this space. I have a situation that is way more overkill than any existing entertainment license in town. I don’t plan on living by a separate set of rules operating my business than the other people operating their businesses. In fact I already think that I’m way overboard with this situation. It’s like if I tell you that when I drive my car I’m going to carry my license because it’s the law and you tell me you’d like me to stick it to the windshield so when I drive by you know I have it.”

The Oak Bluffs noise bylaw, effective between 11 p.m. and 8 a.m., defines disruptive noise as “that which is plainly audible at a distance of 150 feet from the building structure or premises on which the noise is produced.” Two feet separate the Ocean Club from the Surfside Motel.

Mr. Wallace warned the commission about slippery slopes.

“It’s very important to remember the precedent that we’re going to create here,” he said. “The entertainment license that I’m before the Martha’s Vineyard Commission for — there’s never been one on this Island before you. I don’t know whether every time somebody wants to have an entertainment license now it’s going to be a DRI.”

Mr. Wallace said in the coming weeks he would hire an HVAC expert to address the open soffits and lack of insulation in the building in an effort to comply with the Oak Bluffs noise bylaw. He estimated the cost of work at $30,000. Any further sound mitigation, he argued, would be extravagant.

“What you’re asking to try to enforce is what the town already has the capability to enforce,” he said. “I’m also not going to build a building over 33 feet because that’s the law in Oak Bluffs. I’m not going to tell you you won’t be able to hear a pin drop because that’s unrealistic.”

Surfside owner Jeff Young and members of his family, many of whom work at the motel, say the potential second floor venue next door represents a threat to their livelihood. The Ocean Club has already held four upstairs events in the past year — which the Youngs claim were unlicensed — including the high school homecoming dance. Surfside manager Sarah Young said customer complaints during those events skyrocketed.

“We did have complaints sometimes from the [arcade previously upstairs] but it was nothing like the complaints that we’ve gotten from the four events that they’ve already had,” she said.

“It’s not even close. I cannot even express the difference in complaints and the level of anger the guests have with us that we have not provided them with a satisfactory night’s stay. They want their money back and we’ll give them a refund. Unfortunately that means that they generally leave and they don’t come back to the motel, and some of them don’t come back to Oak Bluffs and some of them don’t come back to the whole Island. I’ve already had people say they will cancel their reservations with us this summer if [the second-floor venue] goes through.”

Mr. Young says the motel, which annually serves some 21,000 guests, regularly accommodates airline employees who are especially sensitive to sleeping arrangements.

“If they’re disturbed in the evening they won’t be staying with us and that’s a major concern,” he said.

Surfside employee Bob Muzik said that when the police were called during the four previous events there was no response, a result that Mr. Wallace was quick to explain.

“We have a pretty intelligent group in the room,” he said. “We have a neighbor that sued me about wanting to use this space. They’re building a case to complain about the noise. It is in their best interest to complain about the noise and maybe the reason why the police didn’t respond to it is because they respond to noise complaints all the time and there wasn’t enough noise to make a complaint.”

Surfside employee Elizabeth Young said her family has rarely had to resort to formal complaints in the past.

“We have peacefully coexisted with our neighbors, we’ve never been in front of you, we’ve never made complaints before,” she said. “We are reasonable people but we’re here for the first time in 25 years to say that our business is directly threatened by this. This is causing a massive amount of damage to our reputation and our business.”

Mr. Wallace reminded the commission of his business interests as well.

“We’re talking about them losing their business; well, this has been a zero revenue source on a million dollars that I don’t have for two years and it’s getting very close to me losing my business,” he said. “We have 11 kids and a lot going on on this Island too. So I think as you shed a tear I hope you don’t have to shed one for me.”

At least one commission member was sympathetic to Mr. Wallace’s argument.

“If the town has an ordinance that says this is the level that is acceptable in our downtown area, I’m not sure we’re the judge to say that that’s not a correct level of noise in Oak Bluffs,” said West Tisbury commissioner Brian Smith.

The commission continued the public hearing until April 28 to receive written correspondence.