The Martha’s Vineyard Commission this week voted unanimously in favor of a redevelopment plan that would transform the former Phillips Hardware, on Circuit avenue in Oak Bluffs, into a mixed-use building with two floors of apartments above two street-level retail shops.
The newly-approved proposal from the Pacheco family, who also own Reliable Market next door, echoes an earlier plan from the former owners of the Phillips building, who received the commission’s approval in late 2016 to replace it with housing and retail using conventional, stick-built construction methods.
As revised by the current owners — who have dubbed it Oakwood, after a hotel that occupied the building more than a century ago — the redevelopment calls for modular construction rather than stick-built, which drew criticism from a neighboring property owner during the public hearing last month.
But the Pachecos’ proposal won support from business owners on and near Circuit avenue, who testified that replacing the vacant hardware store with a new, active building would help bring more commerce to the struggling downtown.
The Oak Bluffs select board also submitted a letter of strong support for the project, which includes two two-bedroom apartments and eight one-bedroom units.
All 10 apartments would be rented on an annual basis to year-round residents, defined under state law as living in their homes for 10 months out of 12. Short-term rentals would be prohibited.
“The inclusion of apartments restricted to year-round, annual leases directly addresses the Island’s critical housing needs,” Oak Bluffs town administrator Deborah Potter wrote in the select board letter.
In Thursday’s deliberations, commissioners agreed the housing is needed and vacant properties are a blight.
“I believe empty storefronts are a cancer,” said Michael Kim, who was less enthusiastic about the building’s Victorian-inspired design.
“This is a cheap imitation of a style of building,” he said.
Without disagreeing with Mr. Kim, Ben Robinson noted that Oak Bluffs has always been a “honky-tonk” town with a freewheeling sense of style.
“We’re not talking about high Victorian architecture by any stretch, and the buildings on Circuit avenue have developed over the last 100 years in different ways,” Mr. Robinson said.
Commission chair Peter Wharton said designer Scotty Estacio has been working with the MVC’s historic preservation consultant, Eric Dray, and that the Oak Bluffs historic commission had indicated it was in favor of recent changes to the exterior design.
Thursday’s unanimous approval clears the way for the Pachecos to seek town permits and begin what work they can before the summer building moratorium goes into effect at the end of May.
This article appears in March 13, 2026.

Great news. This building will be a credit to their business and our historic downtown.
I would assume the Planning Board will review next to determine if and what conditions are added. Remember, the MVC is just one step. Town Planning Boards and Zoning Boards need to weigh in prior to permits being issued.
Too bad the moratorium will slow this down. Couldn’t some work be accomplished that would not affect the mighty tourist dollar?
Agreed. Circuit Ave is on life support now. From the abandoned Island theater to shuttered store fronts it’s not a tourist attraction or destination. Get your t-shirts on the harbor, folks.
Good solution for an important issue! Please consider soliciting hardware store vendors for the commercial space. I miss Phillips and their terrific staff.