Sam's Place is currently under a 30-day ban on serving liquor and operating video lottery terminals. (CBC)

A Dartmouth bar and lounge will bring in new managers and operate under reduced hours for the next year as part of a settlement with neighbours who complained about noise in the area.

Sam's Place Dining Room & Lounge on Portland Street will close at midnight for the next year — instead of 2 a.m. — as part of an agreement with Dartmouth's Admiralty Place Condominium Corp. and the Downtown Dartmouth Business Commission.

The settlement was approved Tuesday morning by the Nova Scotia Utility and Review Board.

"We're pleased with the recommendations and the orders that have come down. It's been a long time in negotiations and a long time in terms of when we first put our complaint in," said Barbara Hart, a past president with the Board of Directors of Admiralty Place.

"Overall, we're very pleased with the way this has progressed."

Hart said the settlement will mean fewer sleepless nights.

"We now have an agreement that's been sort of amicably done so that negotiations with Sam's Place in the future can go on and be a reasonable means by which we can all live together," she told CBC News.

"The long and short of it is, we want to be happy in the downtown for everybody and to have a better place to live."

Sam's Place Dining Room & Lounge is currently under a 30-day ban on serving liquor and operating video lottery terminals after an inspector found a bag of marijuana in the basket of a deep fryer.

The lounge is allowed to stay open to serve food and non-alcoholic drinks.