State Judge Dismisses Chappaqua Crossing Suit

A decision released Monday afternoon by a state Supreme Court judge dismissed a lawsuit filed last year by Chappaqua Crossing developer Summit/Greenfield against the Town of New Castle.

Judge Gerald E. Loeher ruled that Summit/Greenfield was aware of the zoning hurdles on the 116-acre property when it bought the former Reader’s Digest site in 2004. Although the town board’s decision to approve 111 housing units rather than the developer’s revised request of 199 reduced the property’s value, it did not decimate its worth, Loeher ruled.

The stalled project had been mired in litigation since February 2011 when Summit/Greenfield sued the town and three sitting town board members for what the company alleged were “unlawful actions” that prevented it from building on the property. The proposal calling for 199 units consisting of condominiums and townhouses already had been reduced from the previous plan of 278 units of mostly age-restricted housing.

About a month after state and federal lawsuits were filed, the town board approved plans for the 111 units. The federal suit is still pending.

Summit/Greenfield issued a one-sentence comment through its public relations firm, Thompson & Bender, late Monday afternoon in reaction to the decision.

“We have reviewed the ruling and respectfully disagree with the judge’s decision. We are reviewing our options,” the statement read in full.

The decision came a week after several New Castle residents spoke out vehemently against a proposed zoning change to allow Summit/Greenfield to include a 60,000-square-foot supermarket and several other stores at the former Reader’s Digest site.

The town board is considering a measure to have an Office Park Retail Overlay District that would permit developer Summit/Greenfield to build a supermarket and five additional retail stores at least 5,000 square feet each.

Under discussion at the public hearing during the Sept. 24 town board meeting was a plan to amend Chapter 60 of the town code to allow retail uses in a research and office business district “under certain conditions.”

The proposal to amend the code for retail use at Chappaqua Crossing was unanimously panned by residents during the roughly 70-minute hearing. Resident Lisa Katz presented the board with a petition signed by 120 residents who oppose the change.

“This is freaking me out,” Katz said. “This is much worse than I thought. A 60,000-square-foot supermarket in the middle of a residential area is mind boggling.”

A supermarket and retail stores would make the already dangerous traffic situation worse, with Horace Greeley High School nearby and the area already prone to accidents.

“Don’t shove this down residents’ throats,” Katz implored the town board.

Another resident, Victor Siber, said this was the first time he saw a copy of the proposed changes, suggesting the board hasn’t been adequately transparent.

Rob Greenstein, co-president of the Chappaqua-Millwood Chamber of Commerce, was among the residents who said Chappaqua Crossing’s location was inappropriate for a large food store. He was he was “concerned about having a third hamlet, another hamlet, a third business district,” and compared the plan to a strip mall.

Greenstein said a new supermarket should be located downtown.

Despite the heavy criticisms last week, the developer provided a statement following the meeting, saying the proposal would be beneficial to New Castle.

”Summit/Greenfield has followed the town board’s discussion of its stated desire to increase the town’s commercial tax base and simultaneously provide a much-needed amenity for the community — a full service grocery store — as reflected in the proposed amendment of the town’s Zoning Code,” the developer stated in a prepared statement.

“We have reviewed the proposed local law for an Office Park Retail Overlay District and believe that it provides a thoughtful framework for the creation of limited retail uses at the Chappaqua Crossing site which would be complementary to on-site office, research and residential uses, as well as to the broader Chappaqua community,” the statement continued.

The town has been without a full-service supermarket since D’Agostino vacated the Horace Greeley Shopping Center on King Street and Route 117 last year.

Summit/Greenfield’s proposal is being sent to the planning board and architectural review board for review.

The town board adjourned the public hearing until its Oct. 30 meeting.