A divided Martha’s Vineyard Commission voted 10-6 late Thursday to deny the redevelopment plan for the former Edu Comp building in Vineyard Haven, ending an eight-month review of the project but leaving the door open for the developer to immediately return with changes.

Commissioners who voted against the plan praised it for its strong workforce housing component, but were troubled by a sunset clause that was added by the developer that would bring the restricted housing to an end after seven years.

“I would have liked very much to have voted for this project, but the combination of the size and the sunsetting of the workforce housing units — those two things just poison the pot and I can’t vote for it,” said commissioner Fred Hancock.

“It’s unfortunate — this was an opportunity to rehab a building that needs to be rehabbed, preserve commercial space and add some housing that’s badly needed — but this doesn’t achieve it and that’s unfortunate,” said commissioner Ben Robinson.

Others spoke strongly in favor of the project.

“You’d be hard pressed to deny this because we need the housing on all levels ... we need the housing and we don’t need it five years from now, we need it now,” said commissioner Trip Barnes.

“It is a big building — we can agree or disagree about whether it’s a pretty building, but in order to get a big amount of housing you have to have a big building,” said commissioner Brian Smith. “This is exactly what we’ve been championing for decades, and I think we should approve it.”

The vote to deny was made without prejudice, which will allow the developer to submit a revised plan immediately if he chooses, without waiting the requisite two years under MVC rules.

Developer Xerxes Agassi wants to convert the distinctive red brick building at 4 Main street into 14 residential condominiums and three ground-floor office units.

Although it has been scaled back from an earlier version, the plan would still nearly triple the size of the building — from roughly 7,800 square feet to 21,000 square feet, making it the second largest building in downtown Vineyard Haven.

The heart of the project is to create residential apartments — primarily employer-paid work force housing.

But size and scale have been sticking points with the commission during public hearings — and those points surfaced again during deliberations that ran late into the evening Thursday.

“It’s Beacon Hill,” commissioner Christina Brown said, describing the style of the proposed new building as out of character with downtown Vineyard Haven.

But commissioner Michael Kim, who is an architect, had a different take. “It isn’t Beacon Hill,” he said. “This is a mediocre brick building. And buildings last a long time — a lot longer than our housing crisis.”

For many commissioners the sunset clause on the workforce housing proved the biggest barrier.

“It should be in perpetuity,” commissioner Kathy Newman said.

“It’s kind of useless if it isn’t,” said commissioner Linda Sibley.

When it came time to vote, commissioner Jim Vercruysse urged a different tack, suggesting that conditions could be added to get the project to approval.

“I usually believe if we have to put a bunch of conditions on a project, we should deny it .... but going through benefits and detriments [tonight], I don’t think we have to do that,” Mr. Vercruysse said. “I don’t think we need to deny it.”

The roll call vote was as follows on the motion to not approve the project without prejudice.
 ( A yes vote was to deny the project since the motion was to not approve).

Voting yes: Jeff Agnoli, Christina Brown, Jay Grossman, Kathy Newman, Michael Kim, Ben Robinson, Linda Sibley, Christine Todd, Kate Putnam, Fred Hancock.

Voting no: Joan Malkin, Jim Vercruysse, Brian Smith, Greg Martino, Ernie Thomas, Trip Barnes.

Commissioner Doug Sederholm had recently recused himself from the hearings, citing a conflict.