I went the other way with my Billericay 01/02 adventure. Initially the council refused, then relented when I got into the Premier League. I don't know what their ground is like in real life when it comes to room to expand however.
I never heard from the council again, but I when I wanted another increase, I ended up issuing the board an ultimatum. They said they would overlook my outburst "this once", and after fans protesting in my favour, they expanded again.
After a further expansion a season later, the capacity had risen from 3500 in the Conference to 22,500 (all seated) in the Premier League.
When Chelmsford City got promoted to the Conference, they ended up having the best ground in the division.
Then a new chairman took over and sacked me a few months later.
Just shows, that the ultimatum feature DID work in the right circumstance.