After weeks of delay, the Oak Bluffs select board signed off on an agreement with the state Tuesday that clears the way for construction of a shared-use path on the stretch of road running from the Lagoon Pond drawbridge to County Road at Eastville avenue.

The state-funded project received the backing of voters at the annual town meeting earlier this spring. But at a meeting two months ago some board members balked at signing off on a standard land-damages and right of entry agreement that MassDOT uses for such projects.

At the time selectman Gail Barmakian worried about whether the town was giving up its legal rights by signing the agreement.

Tom Currier of MassDOT said the document could not be amended and that if it was not signed the project could be delayed or even abandoned.

Revisiting the issue this week, the board voted to sign the document, with Ms. Barmakian still opposed.

“I will be voting no on this only because I wish it was better, but I’m sure the project will go forward and hopefully DOT will live up to its commitment to work in good faith with the town,” she said before the vote.

Board chairman Brian Packish said he wanted to move forward and not jeopardize state funding for the path.

“It comes down to whether we want this project to happen or not happen,” he said.

The four-hour meeting also saw lengthy discussion with Narragansett House owner Kahina Van Dyke over her application for an entertainment license covering Friday evening events at the guest house.

“We do five-to-sevens kind of as a tradition in this community,” said Ms. Van Dyke, who has been hosting the musical duo of Sean McMahon and Siren Mayhew on Fridays and local authors on Saturday afternoons.

Ms. Van Dyke apologized that she hadn’t been aware an entertainment license was needed.

Abutter Jim Waters complained about noise from amplified music. “What sort of additional events might we expect should this license be granted?” he asked.

Oak Bluffs resident Christine Todd, who also heads the town business association, spoke in support of the Friday events, dubbed Sundowners by Ms. Van Dyke.

“I see it as an opportunity to build community,” Ms. Todd said. “I think the hours are quite reasonable.”

Some board members were dubious about allowing amplified sound at a site surrounded by private homes.

“It’s turned into a regular event, and it’s disruptive,” Ms. Barmakian said.

In the end the board told Ms. Van Dyke she can hold the concert and book talk without amplification this week, while Mr. Packish promised a speedy follow-up meeting to determine town policy on future events.

A proposed jazz concert outside the Island Inn next month also failed to find favor with board members, who noted the inn’s proximity to the Harthaven neighborhood.

“It is a neighborhood that is very mindful of what occurs on this property,” Mr. Packish told the organizers of Jazz on the Vineyard, a benefit for Hartford-based Student Achievement Through Opportunity.

“Events outdoors have been very controversial,” Mr. Packish said. He said town bylaws may shed more light on what the inn is allowed to do.

“We’re going to do our best to get you an answer, to leave you as much time as possible to react,” Mr. Packish said.

Also Tuesday, parks commissioner Anton Lima reported that the Sunset Lake renovation project is on track to be finished by August 8.

The new Oak Bluffs town hall is also on schedule to be finished by Nov. 9, Jorge Figueiredo of Atlantic Construction told the board, but the report was received with open skepticism. “You’re talking three months, and there’s nothing inside that’s been done,” Ms. Barmakian said.

“I’ve been driving by on a nearly daily basis and it’s concerning,” Mr. Packish said. “I start thinking of 90 days from now, having a building that’s in deliverable condition. Honestly, I have no faith in a Nov. 9 date,” he said.

“There are no unforeseen conditions that would impede on that date,” Mr. Figueiredo said. “I give you my word we’ll stay on top of it.”