The Sausalito Planning Commission chided downtown residents for citing noise as a reason to block the former Wells Fargo bank from being converted into a restaurant and hotel.

“It’s quite maddening to me that there is this much conversation about something that is in a commercial residential district,” said Nastassya Saad, the commission chair. “If you live in a commercial district, commercial residential, it has to be expected that there is going to be some level of noise.”

The panel unanimously approved eight permits to remodel the interior of the 101-year-old bank into a ground-floor restaurant and upstairs hotel with three suites. The plan also includes a small backyard deck and hot tub.

The project, located at the corner of Bridgeway and Excelsior Lane stairs and walkway, was approved by the panel in December.

Days later, an appeal was filed by Sharon Conn, who lives on Excelsior Lane. She claimed the commission’s rulings were deeply flawed and hurt the neighborhood. In February, the City Council heard the appeal and sent the project back to the commission.

Developer Kent Ipsen scaled back plans for the rear deck, seating area, fire pit and hot tub. Conn rallied more than a dozen neighbors to turn out for Wednesday’s public hearing. Her legal team continues to push Ipsen for concessions.

“I did get a chance to speak to Kent Ipsen right before this meeting and while we made some progress we went backwards in other areas,” said Anna Welch, who was representing Conn. “What in the conditions of approval are going to bar this from becoming a party spot?”

“So when a wedding party rents this out, the fire code allow for 78 people on the patio and rooftop deck,” said Conn’s son, Robert. “I just say that all of us neighbors are not worked up about nothing.”

Others testified they easily overheard people squatting at night behind the bank. They said they heard the bay’s barking seals as if they were in their driveways.

The project’s defenders included current and past city officials, downtown business owners and others who seek a more vital downtown.

“This proposal brings new life into the historic Wells Fargo building far more than any bank ever did for downtown,” said Michelle Dumont, an architect and former Housing Element Advisory Committee member.

“When I was in your role, I would often hear concerns about traffic and noise … and I can’t remember a single one where anything close to the fears that were expressed came to fruition,” said Ron Albert, a former planning commissioner, council member and mayor. “This project is a godsend. It’s hard to imagine a more desirable reuse of that Wells Fargo building.”

“What is going to be the impact to our community of having another vacant business downtown?” Charles Melton said. “If our city is quiet as church mice, then we have an issue in our downtown.”

After deliberating, the commission added a condition that there would be no outdoor dining on Bridgeway after 11 p.m., the same rule for other new restaurants. Commissioner Andrew Junius said the many legal allegations by Conn’s team were baseless.

“I’ve been drug through the mud and that’s part of the game plan. You know, drag him until he’s worn out,” Ipsen told the panel before it unanimously voted to approve the project for a second time. “I’ve tried to fit in and cause as little disruption as possible.”