The Martha’s Vineyard Commission has unanimously approved the continued operation of a boat repair shop that straddles the Oak Bluffs-Vineyard Haven town line, in an area abutting both a settled neighborhood and a business district in Tisbury.

The approval, voted at Thursday night’s commission meeting, comes with a long list of conditions for Rico’s Boat Service, including a requirement that the business must keep all of its operations and materials on the Oak Bluffs side of the property at 0 Down Island Farms Road.

Owner Ricardo Virginio still must receive a special permit from the Oak Bluffs zoning board of appeals in order to legitimize his business, which has been in existence for several years without the permit required to operate.

In public testimony earlier this year, neighbors on the Tisbury side opposed Rico’s application, saying Mr. Virginio has been a bad neighbor by using the property for large-scale boat storage and other industrial operations that have had negative effects on nearby homeowners.

Boat owners also testified, saying Rico’s provides a much-needed service to Island fishermen and recreational boaters.

In their deliberations, commissioners concluded that the business is essential to the Island’s economy and that the location is appropriate given the alternatives.

“We are an island, and fishing is where it all started. And he does serve the fishing industry, and he does serve the recreational boating industry, and I think that is a true regional impact,” hearing officer Doug Sederholm said.

“I am concerned about the impact on the abutters, but I think he’s making a good faith effort to mitigate that,” Mr. Sederholm said.

Mr. Virginio has committed to storing no more than 30 boats on the property for periods longer than a few days, with other boats remaining only while they are undergoing work at the shop.

The commission’s approval also requires him to consult the neighbors on Upland Drive, along the Tisbury side of the property, and to install fencing and evergreens where the neighbors specify in order to help screen their views of the business. 

Other conditions include a prohibition on outdoor lighting overnight and limits on the number of employees and parked cars allowed on the site, as well as a list of banned activities such as fiberglass works, power washing and pain scraping.

Also Thursday, the Martha’s Vineyard Commission took additional testimony from neighbors of an East Chop home known as the Metcalf house, whose owners are proposing to partially demolish and rebuild the structure in a different orientation.

Abutter Michael Chapman, who also testified when the Metcalf house hearing opened last month, said that owners Lynn and Sengal Selassie initially told him their plans would block no more than half of the water view his family has enjoyed from their home since it was built some 70 years ago.

Instead, Mr. Chapman said, the Selassies filed plans that would leave his Dudley avenue property with barely a sliver of the existing view.

“Maybe 3 per cent or 5 per cent of what we currently look at will remain,” he said.

Attorney George Brush, representing abutters James Jeffers and Katherine Goldfarb, said the Selassies’ plans violate setback rules codified in town zoning bylaws.

“There is really no mechanism for adjusting them, except for the issuance … of a variance. And there’s no grounds for a variance,” Mr. Brush said, regarding the location of outbuildings on the property line.

The Selassies’ architect, Angie Francis of South Mountain Company, said they would consider Thursday’s public testimony before submitting any revised plan for the project.

“Lynn and Sengal are really open to compromise. They just want to ensure that any changes are thoughtful and measured and really balance all the many factors at play,” Ms. Francis said. 

“We’re exploring a lot of options behind the scenes, so we just hope that your input tonight will help solidify and sort of shape the direction of our next proposal,” she said.

The public hearing is scheduled to continue Oct. 23. The Metcalf house is located at 19 Harrison avenue, Oak Bluffs.

Editor's note: a previous version of this article incorrectly stated the owner of the Rico's Boatyard property.