Birthday party help

Dd will be 2 on Labor Day and we want to have a party at our house. We have 32people in our immediate families, 44 friends (including their kids) to be invited. That sounded fine to me but dh wants to invite his entire side.....another 60 people. Our yard is on the smaller side so between tables, chairs, tent, portapoties and the swingset, there is going to be no room for people to even move. Our other issue is we live on a narrow block and parking is an issue daily. I have no idea where people would park, especially if someone else has a labor day bbq.
solutions we've come up with:
1) dont invite extended family (dh not happy)
2) split it between two days (im not happy)
3) have it out at like a park area (dh not happy and not sure if it's posisble to get a place reserved this late)
any suggestions or help? wwyd? I think 120+ for a 2nd bday is a bit much

Re: Birthday party help

Maybe just go for it, people might have other plans bc of the holiday so all of the people you invite may not be able to come. You could also do it more like an open house so not everyone is there at the exact same time. And pray for no rain.