Heatherwood Communities embraced Hempstead’s changing zoning code, only for it to be repealed as the developer set out to build a 309-unit complex. Now, it’s suing the town.
Last month, the Commack-based developer filed a lawsuit in State Supreme Court, Newsday reported, looking to nullify the repeal of a transit-oriented zoning code. Heatherwood claims the lack of a grandfather clause in the repeal was illegal and that Hempstead is running afoul of state law.
At stake for Heatherwood is a $154 million, 309-unit project that has been beset with delays. The five-story development includes roughly 400 parking spaces and is situated across from the Lawrence Long Island Rail Road station.
In 2019, Hempstead adopted a trio of zoning designations to spark multifamily development in the Inwood and North Lawrence hamlets.
That adoption led to Heatherwood’s pursuit of a project at adjacent parcels on Wanser and Bayview Avenues in Inwood, according to the lawsuit; the plaintiff refers to the rezoning as a “primary catalyst” for its investment, which includes the $27 million spent on purchasing the parcels in 2021, plus related costs.
The town’s Industrial Development Agency approved a 25-year PILOT agreement for the project in 2021. The following year, Heatherwood filed building permit applications, which was supposed to launch an expedited review process from the town, according to the lawsuit. That allegedly didn’t happen and a moratorium on developments such as Heatherwood’s was enacted in September 2022.
The moratoriums were extended multiple times as residents sounded off on concerns of traffic and overcrowding.
Even with the delays, Heatherwood started making PILOT payments in 2023, contributing more than $431,000 so far, according to the suit.
In May, however, the town announced its board would consider repealing the zoning code, albeit with a grandfathering in of projects that launched application processes before the moratoriums. But last month, the town repealed the zoning code without a grandfather clause.
Neither party commented on the lawsuit, the second filed by Heatherwood this year after it sued in September for repeated delays.
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