A new pub will be coming to the heart of Somerset's smallest city after councillors voted to grant a new alcohol licence.

The Mermaid Inn, located at the corner of Tucker Street and Portway in Wells, has been closed for many years, with numerous different attempts being made to bring the building back into use.

The building has now been given a "top-to-bottom revamp" as The Sheep and Penguin, which once open will be run as a pub with bed-and-breakfast accommodation above it.

Somerset Council has moved its opening day one step closer by granting a new alcohol licence for the premises, despite the reservations of several local residents.

The council's licensing sub-committee met in Shepton Mallet on Monday afternoon (May 15) to hear from residents, some of whom feared that antisocial behaviour experienced during the Mermaid's trading days would return.

Ina Cole, who lives opposite the site, said: "Opening seven days a week until 1am and serving alcohol until midnight is not appropriate in a residential area, where family members have to work, and children need to sleep.

"The premises were previously The Mermaid, and nuisance behaviour included shouting and swearing late at night, people urinating in the side passage of my property, litter and bottles in the street and in the side passage, fighting in the road, causing a nuisance to passing cars, and trespassing the Little Theatre premises.

"I'm concerned that this will reoccur if the Sheep and Penguin remains open until 1am, seven days a week. It will merely cause customers to become inebriated and lose control, which is the inevitable consequence of alcohol."

Brian and Jayne Doutch added: "We were unfortunate to be living here when the Mermaid was still open.

"We had to sleep in the back of our house every Friday and Saturday night because of the breach of the peace coming from the pub.

"We had incidents of vomit up our door, beer glasses left on our window sills, and screaming and fighting in the middle of the road was commonplace. Whilst we wish the Sheep and Penguin good luck and we will of course support them, we do not want to return to those old days – it was horrendous."

John Devane said that he wishes the new owners well, but was uncertain about the inclusion of a designated outdoor area for the new business.

He said: "Hopefully this will be a huge enhancement to the area – I think they've done a tremendous job and I do hope it will be a success.

"But from my knowledge, the premises has never had a designated outdoor space. This new space will be meters away form residential gardens. I would hope that the council will consider the impact on residents to the same or greater extent as they did when they reviewed the Wetherspoon's application in Princess Road [for the Quarter Jack pub]."

Avon and Somerset Constabulary had originally raised concerns about the new licence; however, their objections were withdrawn before the hearing convened, following discussions with the applicant.

The company seeking the run the Sheep and Penguin currently runs the Queen's pub on Silver Street in Chew Magna, on the north-eastern edge of the Mendip Hills area of outstanding natural beauty (AONB).

Operations manager Sam Jones told the sub-committee that the pub would be run in a "cut-and-paste" of their Chew Magna operation – which currently boasts a Michelin starred chef.

He said: "It's been noted that we're looking for a 1am licence – that's not correct. We're looking for a 12am licence with opening until 1am.

"We have agreed with the police to shut the outside area . The courtyard garden has a high wall of over 2.2 metres, as requested by your environmental protection team for noise control.

"We are pub enthusiasts – we very much want to protect the closure of pubs, and we recognise that the way to do that is to provide a good level of service and good food to customers.

"We have a fabulous reputation with locals [in Chew Magna]. We want to make this a pub that the locals are proud of and want to visit on a regular basis.

"We've spent a huge amount of money in completely refurbishing the pub, and we acknowledge that bed-and-breakfast is essential to the pub's survival. It's unfair to compare us to Wetherspoon's."

Following a short deliberation in confidential session, the sub-committee voted to grant the licence with the new conditions agreed between the applicant and the police.

The pub has not confirmed when it will be opening to the public, with its official website continuing to state that the business is "coming soon".