The former Stone Bank property in Vineyard Haven could include a taqueria under a proposal by developer Sam Dunn now under consideration by the Tisbury Planning Board.

At a hearing last week, the planning board weighed and continued proposals for the Mexican eatery, and the proposed Main Street Medicinals cannabis operations.

Both proposals will come up again at the planning board’s Sept. 21 hearing.

The plan by Mr. Dunn includes an indoor kitchen and outdoor seating for 70. The restaurant would be operated by longtime Boston restaurateur and seasonal Island resident Patrick Lyons.

Mr. Dunn had previously received the planning board’s sign-off on an earlier stage of his housing development plan, but the addition of a restaurant in the bank’s former parking lot on Union street triggered additional review.

“When we gave our approval, the taqueria was going to be a lawn,” board member Connie Alexander said. “The taqueria was not in the plan.”

Due to concerns about storm water runoff, the planning board held a site visit following a heavy rain. Ms. Alexander said they saw more storm water than they felt could be handled by Mr. Dunn’s drainage plan.

“As a group we were quite concerned with the condition of the soils and the ponding and the runoff we were observing,” Ms. Alexander told Mr. Dunn at the hearing.

Mr. Dunn agreed to return with an updated storm water plan and draft drainage map for the board at the Sept. 21 hearing.

The planning board said it will also research potential solutions to the drift of cooking odors from the restaurant onto neighboring properties, after abutter Peter Stam raised concerns.

Mr. Stam requested that exhaust-scrubbing equipment be installed at the taqueria and at a potential future restaurant on the Main street side of the property.

“We are downwind of the prevailing wind from all these restaurants,” he said.

Mr. Dunn pushed back, describing such systems as expensive, both to install and to maintain, and unsightly.

“Restaurants are tough enough,” he said.

Planning board member Ben Robinson said the board will attempt to resolve the disagreement when the hearing is continued Sept. 21.

The board also continued the hearing for Main Street Medicinals’ cannabis operation planned for the Mechanics street site of a former automobile repair shop.

The proposed “seed to sale” complex, which is also under review by the Martha’s Vineyard Commission as a development of regional impact, needs a special permit from the planning board to grow and sell marijuana.

The company is proposing to convert the existing 4,500 square foot metal building to a nearly 8,000-square-foot, multi-level structure with an adult-use dispensary on the main floor and cultivation and production space upstairs and in the basement.

As part of the DRI process, applicant Noah Eisendrath has committed to housing four employees and their families, with annual documentation to the MVC that they are paying no more than 30 per cent of their income in rent, Mr. Robinson said.

But in Island towns where bylaws limit the number of unrelated people who may live together, putting up four employees won’t be as simple as renting a four-bedroom house. In Tisbury, landlords may rent to no more than three people who are not related, building commissioner Ross Seavey told the board.

“They may need to apply for a lodging house license,” Mr. Seavey said.

Main Street Medicinals agreed to do sidewalk work at the juncture of Mechanics street and State Road, but will need the cooperation of the state transportation department, attorney Daniel Glissman said.

“We’ll want something in writing from you guys memorializing that for us,” Mr. Robinson said, before continuing the hearing to Sept. 21 at 7 p.m.

Also on Sept 7, the committee closed a sometimes contentious public hearing on an Island Housing Trust proposal for an affordable duplex on Leland avenue at Franklin street.

Neighbors of the undeveloped lot have consistently opposed the IHT plan for vehicle access from Leland street, arguing that the side street is too narrow for an additional driveway.

But IHT planner Liz Volchok and engineer Keith McGuire said that residents of the future homes will be safer entering and exiting via Leland avenue, with a continuous fence along Franklin.

Mr. Robinson closed public testimony on the matter and the board voted to continue deliberations Sept. 21 at 5:30 p.m.