The town of Edgartown and the Hall family have reached an agreement that is expected to clear the way for the town to take the Yellow House by eminent domain.

Town counsel Ronald H. Rappaport told selectmen Monday that the town and the Halls intend to stipulate in court that Ben Hall Jr.’s personal bankruptcy case will not hold up the taking.

At the annual town meeting two weeks ago, voters agreed overwhelmingly to buy or take the Yellow House and surrounding property for $3 million. Immediately after, an attorney for Ben Hall Jr. sent a letter to the town claiming that a taking would violate the automatic stay provision under federal bankruptcy laws.

The town sought the advice of special counsel at Ropes & Gray in Boston, who said the opinion was baseless.

Yesterday Mr. Rappaport said after discussions between both parties, “We believe we have reached a stipulation that there is no bankruptcy stay.”

Selectmen urged a swift conclusion.

“Hopefully in the next few weeks we’ll dot the i’s and cross the t’s,” said selectman Arthur Smadbeck.

“We’re doing that now,” Mr. Rappaport said.

Also at Monday’s meeting, selectmen approved nine separate one-day beer and wine licenses for the Martha’s Vineyard Wine Festival, scheduled for May 11 to 14 at several downtown locations. Selectmen denied a license for the lawn of the Edgartown Council on Aging, citing rules that prohibit alcoholic beverages on the site, and rules prohibiting for-profit enterprises from using the facility.

Finally, they approved a license for Conor Ahearn to operate a classic car rental company at 140 Cooke street. Speaking for his son at the meeting, Patrick Ahearn said the business has already acquired four classic cars, and intends to do most of its business online, beginning this summer.