The proposals by Argyll Properties Ltd, for land adjacent to Taigh Soalis in Tobermory, will now go to a public hearing.
A planning application has been submitted and is under review to renovate the former Skipinnish building.
Marri Malloy, chairwoman of Oban Community Council said: ‘We are going to come out fighting when it goes to planning.’
The meeting will take place at 10am at the Argllshire Gathering Halls, Oban.
The application was accepted at the appeal
The hearing will take place on May 28 to determine whether 44-homes will be built in the area
The applicant Graham MacQueen says ‘a great many people will benefit from this decision’.