Southampton Town rezones land, clearing path for The Hills, a luxury development and golf course

The Southampton Town Board has approved zoning amendments allowing The Hills, a luxury residential development and golf course in East Quogue, to expand its golf club operations as part of a settlement resolving three lawsuits.

The changes are key to the agreement, which was reached in July between the town and affiliates of Arizona-based Discovery Land Co., the developer of The Hills. Under the deal, Discovery will provide the town with $10 million for a narrow strip of land running through the development, an additional $1.5 million payment and transfer ownership of a largely wooded 32.4-acre parcel along Montauk Highway.

Southampton Town Attorney James M. Burke, in a statement to Newsday, said the settlement “avoids the potential liability for monetary damages” — which Discovery had estimated in one of its lawsuits to be more than $100 million. He also said it secures money that can be used “to the benefit of the residents of the town.” 

The zoning changes allow the golf club to have as many as 295 members, including an additional 177 who do not own homes at The Hills. Under previous rules, club memberships were limited to the owners of The Hills' 118 residential units. 

Approved by the town in 2022, the project is on roughly 600 acres in the pine barrens. The 18-hole golf course has been built, but homes and condos there are still under construction.

The settlement also requires The Hills to keep a wooded trail open to the public and host at least four free charity events each year benefiting local groups.

“With the rezoning now adopted, The Hills is ready to provide public lands and fundraising opportunities for local non-profits,” Jessica Insalaco, a spokeswoman for Discovery, said in a statement.

Some residents and civic groups voiced support for the agreement at a summer hearing.

“No settlement is perfect, and reasonable people can disagree on aspects of this project, but after 10 years, we have an opportunity to secure meaningful environmental, recreational, financial and community benefits, while bringing certainty to a matter that has divided the community for far too long,” Chris Connelly, a member of the East Quogue Citizens Advisory Committee, said on behalf of the group during an Aug. 11 public hearing on the changes.

Others questioned whether the town was getting a fair deal. Jenn Hartnagel, director of conservation advocacy for the Group for the East End, said during the hearing that The Hills was getting golf memberships “potentially worth tens of millions of dollars” and avoiding zoning rules.

“In our view, the town should sustain its appeal and resist coercive financial threats from developers, both now and in the future,” she said.

Discovery sued Southampton Town in 2018 after officials rejected the company's original proposal for The Hills. A court ruling in 2024 found that the town had improperly rejected an earlier version. Another lawsuit was filed by Discovery in 2025 over a road on the property.

While researching, town officials discovered the town owned a strip of land on which portions of the golf course had been built, and areas had been cleared for homes and condos. In January, the town and highway superintendent sued the developer, alleging it had misrepresented ownership of the property.