Work on a new $1 million expansion of Rafferty's Tavern is expected to be finished by Christmas, with councillors approving a move to increase the area where the Warrnambool venue can serve alcohol.
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Construction work will be done over two stages with a new 7.5-metre tall atrium and a whole new public bar area on the drawing board for the venue.
General manager Mark McIllroy said the works were needed to help address noise complaints from neighbours after pandemic restrictions forced the venue to erect marquees to help the business survive the impact of lockdowns.
Mr McIllroy said the pandemic had delayed the expansion plan but he hoped the new front gaming room, toilets, public bar and outdoor area would be completed by Christmas.
"It's all dependent on trades and supplies," he said.
Mr McIllroy said the new atrium would be stage two. "The atrium is absolutely amazing," he said.
The marquees, which he said caused problems with neighbours during the pandemic, had already been removed.
"We were forced outside but we didn't want to go outside but we had no choice if we wanted to survive," he said
"When we were forced outside and into marquees, it was a great area but it just wasn't great for noise and it caused issues with the public.
"We put our hand up and we had to fix it. We've worked with a sound engineer and we've designed a fully soundproof room, and an outdoor area that's fully glazed and can close up or open up, so there'll never be a sound issue again.
"It's very important that we do the right thing by our neighbours.
"It allows us to have an outdoor area that addresses noise...which is what we needed to do."
In approving the extension to the red line area - the location of where they are allowed to serve alcohol - a number of councillors pointed out they weren't making a decision on the building permit because that had already been issued.
Councillor Ben Blain said the new function room had been designed to minimise the impact on the surrounding areas. "And I really hope that's right," he said.
He said the motion came with a condition that there was a sound test to make sure the neighbouring area wasn't impacted like it had been during the pandemic.
"It is exciting to see that a business is expanding and responding to the demands of its surrounding areas," Cr Blain said.
"I do hope this new building will result in a better amenity for the surrounding houses."
Mayor Vicki Jellie said the venue seemed to have given the function room full consideration with noise reduction in the ceiling, roof, walls and windows.
"It's important the applicant adhere to the all the recommendations with what they do so they don't disturb the neighbourhood. That's very important," she said.
The decision was passed unanimously despite the move attracting five objections.
Objectors said the noise from the marquees had caused sleep deprivation, anxiety and mental health issues, and there had been many complaints to authorities.
"Shift workers in the area have little respite from the music noise," one said.
"My family cannot enjoy a reasonable night's sleep over the weekend leaving us to commence the week sleep-deprived.
"This is an ageing, well-established suburb with many elderly who likewise cannot sleep with the level of noise from the hotel and frequent screaming arguments in the streets in the early hours of the morning, often hours after the hotel closes."
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