Keller, Michael Lyons and Campbell opposed the request while Chairman Everett McBride Jr. and Patrick Hargreaves were in favor.
But the board voted unanimously in favor of a motion by Hargreaves to waive the $10 fee per sign for nonprofit organizations to post signs on their own property.
The issue was debated for more than an hour as Betty Gay and other SalemFest organizers pleaded with selectmen to allow the signs for the event, scheduled for Sept 21-22.
“It might be effective to form a study committee to develop a solution,” Gay said.
Selectmen previously decided to prohibit signs from rights-of-way after another organization was granted permission and kept its signs up longer than it should have, Campbell said.
Gay said SalemFest had been allowed to post its signs for a decade, but selectmen said organizations would no longer be allowed to place signs in rights-of-ways.
Granting permission to one organization would mean they would be obligated to grant it to others, selectmen said.