The Dart and Marlin restaurant in Warrnambool has been given approval to be turned into a bar selling packaged alcohol, despite neighbours objecting to late-night noise that vibrates their furniture.
City councillors gave the green light to issue a permit in a six-one vote at Monday's meeting despite some raising concerns about alcohol sales and the impact on properties nearby.
The move to alter the liquor licence will also allow the venue to stay open longer, until 1am.
The plan for the Timor Street venue, which is located across the road from a hotel and next to a number of holiday accommodation providers, attracted five objections.
One elderly neighbour said the venue already caused them "considerable stress" with loud music and crowd noise, street litter, vomit and urine on the walls of her property.
"On many occasions the music has been so loud it has caused my furniture to vibrate, and I and guests have barely been able to hear each other speak," one wrote.
Cr Ben Blain said it was great to see a business continuing to invest in the CBD.
"They are not moving their liquor licence out any further than anyone else in that part of the CBD, so it would be in line with other venues," he said.
"I think the amenity and noise from the venue with the music condition is really important to point out in this permit.
"There will have to be a noise assessment after six months to make sure the venue is complying, especially for the amenity of the other businesses and houses around this business."
Cr Blain said that with the extension of the liquor licence there had been a lowering of the patron limit from 250 to 200, in line with the size of the venue.
Cr Debbie Arnott said there was no doubt people living close-by would be affected by noise.
"The only thing I do have a question about is whether they need to be able to sell packaged alcohol on the street, especially when there is alcohol directly across the road which is freely available," she said.
Cr Vicki Jellie said she also had an issue with takeaway liquor.
"I don't think there is necessarily a need for that as there are other hotels and bottleshops in the area," she said.
Cr Otha Akoch said he had concerns about increasing hours to 1am and the noise at that time and was the only councillor to vote against the proposal.
One objector said the venue had regularly been too noisy and they had called authorities and lodged formal complaints on occasions.
"The crowd noise and music can be clearly heard in our rooms where up to 20 guests, including children, stay," said another.
The motel across the road said guests already had to put up with patrons squealing and yelling as they leave, and had complained numerous times about the noise.
The permit allows the venue to extend the licensed area to incorporate part of the upper floor and un-licensed areas of the rear courtyard.
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