Developers sue Town of Hempstead over transit-oriented project delays

Two Five Towns transit-oriented development districts continue to be a point of contention, this time for the developers who are seeking approval to break ground five years after the 2019 zoning change that made way for new residential and minor industrial development near mass transit stations.

Heatherwood Communities LLC, of Commack, a firm that builds multifamily residential developments, filed a lawsuit in Nassau County Supreme Court on Sept. 10, claiming that the Town of Hempstead’s failure to appoint a design review board has stalled Heatherwood’s plans for the new districts, Colleen Collins, general counsel for Heatherwood, wrote in an email.

In 2019, the town approved 11.7 acres near the Lawrence Long Island Rail Road Station and nine acres near the Inwood LIRR station to become transit-oriented development districts.

The purpose, as written in the town’s building zone ordinance, was to offer people living close to mass transportation a lively community.

The ordinance, titled “Transit-Oriented Development District for North Lawrence and Inwood,” stated: “Having transit-oriented development within walking distance of the Lawrence and Inwood LIRR train stations, with appropriate design elements, will achieve multiple goals: encourage walking and bicycling; increase transit ridership; emphasize mixed-use, pedestrian-oriented development; reduce potential automobile dependency associated with new land uses by locating multiple destinations within close proximity; and support a larger commercial tax base for North Lawrence and Inwood.”

Less than two years later, Heatherwoood proposed a five-story, mixed-use building with more than 300 residential units and garage parking for more than 400 vehicles, to be built on Wanser and Bayview Avenues in Inwood.

“To date, petitioners have fully complied with the TOD Ordinance governing provisions and its procedures to obtain the requisite Town agency approvals for various phases of their project,” the plaintiff — Heatherwood, represented by the law firm Ruskin Moscou Faltischek — wrote in the petition against the town.

Heatherwood had considered expanding Inwood years before, but only acted on the idea once the area was rezoned to transit-oriented development, the company wrote in the petition.

In 2022, all potential plans came to a halt as a six-month moratorium was put in place on projects in the area of the zoning change. More than 100 Five Towns residents attended a town hearing to voice their fear of impending overdevelopment. Several extensions of the moratorium kept it in effect until June 18 of this year.

Heatherwood spent over $30 million on the proposed project, and followed the procedure for submitting an application, but the town has yet to do its part, Heatherwood wrote in the petition.

The town’s 2019 building zone ordinance states, “Applicants proposing development in the TOD District have the opportunity to receive an expedited approval process by having the projects initially reviewed by a Town-appointed Design Review Committee (DRC) for advisory comments and assistance with preparing and filing compliant submissions with the Building Department.”

Heatherwood is seeking “appointment of design review board,” Collins wrote in her email, and the expedited review and approval suggested by the town, Heatherwood wrote in the petition.

No court date has been set, because the town has yet to respond to the lawsuit.

Representatives of the town and the Town of Hempstead Industrial Development Agency said they do not comment on pending litigation.