Southold developer Rona Smith on land in Peconic that town officials...

Southold developer Rona Smith on land in Peconic that town officials have approved for a joint project she's part of for 32 affordable housing units. Credit: Randee Daddona

Plans for an affordable housing development in Peconic can move forward after a judge dismissed a lawsuit challenging the property’s rezoning. 

Last week,  Southold's town board voted 4-2 to accept a bid to build 32 cottages on Carroll Avenue from Jericho-based Georgica Green Ventures and Southold developer Rona Smith.

A board majority said the town must address its housing shortage, but Councilwoman Louisa Evans and outgoing Town Supervisor Scott Russell voted against the measure while saying said the process was rushed and lacked transparency.

The project, to be built across from Tasker Park, will include eight single-story “bungalows,” each with four units for sale, from $285,000 for a one-bedroom to $380,000 for a three-bedroom. Eligibility will be determined by income and depend on applicants’ ability to qualify for a mortgage.

Ownership was a key part of the proposal, which initially included rentals as an option.

“Homeownership is central to the American dream,” said Councilman Greg Doroski, who voted for the project.

He added that he hopes residents who buy cottages can build equity and eventually sell the units to others on the town’s affordable housing registry.

U.S. Census data shows the median home value in Southold is $632,800. Town planners have said the housing registry, a manifest of residents seeking affordable dwellings, has more than 600 names.

Smith, a former chair of the town’s Housing Advisory Commission, previously partnered with Georgica Green Ventures on an affordable housing proposal for Cutchogue that the town board rejected in 2022.

“We’re losing our middle class,” Smith said in an interview. “There’s literally nowhere to live.”

The $17.4 million project will be financed through a combination of loans and a new pool of state funds that incentivizes first-time homeownership, according to David Gallo, CEO of Georgica Green Ventures.

Southold purchased the 10-acre site for $750,000 in 2018 for an indoor sports complex in a public-private partnership with another developer, Paul Pawlowski, who later proposed adding affordable cottages to the site. Pawlowski withdrew his application in early 2023, citing economic difficulty and community pushback.

In April, the board rezoned a 5-acre portion of the property from agricultural conservation to affordable housing district and issued two requests for bids: one for housing and the other for a recreation facility.

Then two neighbors sued the town, challenging the change of zone, alleging in part that a supermajority of the board was required to approve the change and the measure didn’t comply with state environmental laws.

Their lawsuit also argued the town originally bought the land for a recreation complex and therefore it should have been reserved as parkland.

Court records show Suffolk State Supreme Court Justice C. Stephen Hackeling dismissed the case on Nov. 22.

Hackeling ruled in part that a supermajority was not required to approve the rezoning, that an environmental review was done and that there was no evidence the property had been dedicated as parkland.

The winning housing bid was the only proposal the town received and there were no bids submitted to build a recreation complex, officials said.

Rachel Flatley, 33, a neighbor involved in the litigation, said Wednesday she plans to appeal the court decision.

“Now the sports complex is completely off the table and it’s just affordable housing,” she said. “We felt like it was a complete bait and switch.”

The town board in an identical 4-2 vote last week also approved selling the rezoned 5 acres to the developers for $500,000. Russell objected, saying the property should have been appraised and the public should have had a chance to weigh in.

Both measures are contingent on the Planning Board giving site plan approval to the development and the Zoning Board of Appeals granting a variance — since the proposed number of housing units is more than town code permits.

Plans for an affordable housing development in Peconic can move forward after a judge dismissed a lawsuit challenging the property’s rezoning. 

Last week,  Southold's town board voted 4-2 to accept a bid to build 32 cottages on Carroll Avenue from Jericho-based Georgica Green Ventures and Southold developer Rona Smith.

A board majority said the town must address its housing shortage, but Councilwoman Louisa Evans and outgoing Town Supervisor Scott Russell voted against the measure while saying said the process was rushed and lacked transparency.

The project, to be built across from Tasker Park, will include eight single-story “bungalows,” each with four units for sale, from $285,000 for a one-bedroom to $380,000 for a three-bedroom. Eligibility will be determined by income and depend on applicants’ ability to qualify for a mortgage.

Ownership was a key part of the proposal, which initially included rentals as an option.

“Homeownership is central to the American dream,” said Councilman Greg Doroski, who voted for the project.

He added that he hopes residents who buy cottages can build equity and eventually sell the units to others on the town’s affordable housing registry.

U.S. Census data shows the median home value in Southold is $632,800. Town planners have said the housing registry, a manifest of residents seeking affordable dwellings, has more than 600 names.

Smith, a former chair of the town’s Housing Advisory Commission, previously partnered with Georgica Green Ventures on an affordable housing proposal for Cutchogue that the town board rejected in 2022.

“We’re losing our middle class,” Smith said in an interview. “There’s literally nowhere to live.”

The $17.4 million project will be financed through a combination of loans and a new pool of state funds that incentivizes first-time homeownership, according to David Gallo, CEO of Georgica Green Ventures.

Southold purchased the 10-acre site for $750,000 in 2018 for an indoor sports complex in a public-private partnership with another developer, Paul Pawlowski, who later proposed adding affordable cottages to the site. Pawlowski withdrew his application in early 2023, citing economic difficulty and community pushback.

In April, the board rezoned a 5-acre portion of the property from agricultural conservation to affordable housing district and issued two requests for bids: one for housing and the other for a recreation facility.

Then two neighbors sued the town, challenging the change of zone, alleging in part that a supermajority of the board was required to approve the change and the measure didn’t comply with state environmental laws.

Their lawsuit also argued the town originally bought the land for a recreation complex and therefore it should have been reserved as parkland.

Court records show Suffolk State Supreme Court Justice C. Stephen Hackeling dismissed the case on Nov. 22.

Hackeling ruled in part that a supermajority was not required to approve the rezoning, that an environmental review was done and that there was no evidence the property had been dedicated as parkland.

The winning housing bid was the only proposal the town received and there were no bids submitted to build a recreation complex, officials said.

Rachel Flatley, 33, a neighbor involved in the litigation, said Wednesday she plans to appeal the court decision.

“Now the sports complex is completely off the table and it’s just affordable housing,” she said. “We felt like it was a complete bait and switch.”

The town board in an identical 4-2 vote last week also approved selling the rezoned 5 acres to the developers for $500,000. Russell objected, saying the property should have been appraised and the public should have had a chance to weigh in.

Both measures are contingent on the Planning Board giving site plan approval to the development and the Zoning Board of Appeals granting a variance — since the proposed number of housing units is more than town code permits.

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