The Edgartown National Bank has scaled back plans to replace the Oyster Bar and Grill in Oak Bluffs with a three-story structure that would have maxed out town zoning limits. Responding to concerns voiced at a Martha’s Vineyard Commission public hearing last week, the bank returned to the commission on Monday to present a two-story version of the plan.

The bank foreclosed on the Oyster Bar earlier this year and recently presented a plan to demolish the original building, replacing it with a bank branch and two retail units on the first floor, as well as four two-story townhouse condominium apartments on the second and third floors. But members of the Martha’s Vineyard Camp Meeting Association objected to the project’s size and scale.

“I really totally oppose this in the sense that it’s not in the character of the Camp Ground,” said third-generation Camp Ground resident David Whitney at a packed public hearing last Thursday. “Please understand these are 150-year-old homes with single walls, most of them. In the summer there are just screens with fans and noise from Main street [Circuit avenue] comes in anyway, but roof decks would be totally impossible because they don’t even have the hours of the bars. Please keep in mind what the Camp Ground brings to this Island to attract people to this magical place,” he said.

“A single or two-story commercial mixed-use building is something we could much more readily support,” said Camp Meeting Association president Craig Lowe. Architect Douglas Paul Ulwick, representing the Camp Meeting Association, presented models of the new building and its looming effect over the 177-year-old national historic landmark.

Bank officials responded by telling the commission they are willing to compromise on the size of the proposed building.

“You tell us what you want,” bank president Fielding Moore told a full house at the Thursday hearing. “Our feelings are not going to be hurt if you only want one story, two stories or three stories. This is your community, this is your decision about what you want. Let us know.”

But commissioners said the ball was in the bank’s court.

“Either this is something you want to do and we’re all going to spend a lot of time helping you do it, or come back with a one-story bank,” said commissioner Brian Smith. “I’m just not sure I understand where you’re coming from.”

Commissioner John Breckenridge agreed. “Throwing a piece of spaghetti against the wall and seeing what sticks isn’t what we’re about,” he said.

“We’re not a real estate developer. We don’t have a stake in the second or third story,” responded Mr. Moore. “We’re only interested in putting a branch office there. I heard from various people in the community that there’s a housing need here and the bank is making that opportunity available. But if we can get one story, that’s all we’re looking for.”

On Monday architect William Christopher went before the commission’s land use planning committee to present plans for a revised two-story building. The plan was received positively by the subcommittee.

“Thank you very much, it shows true responsiveness,” said commissioner Doug Sederholm.

At the close of the meeting, Mr. Christopher turned to Mr. Lowe from the Camp Ground, who was in the audience.

“Better?” he asked.

“Much better,” Mr. Lowe replied.

The commission will continue a public hearing on the project on May 17 at 7 p.m.