Southold Town Hotel Development Moratorium Proposal Sparks Debate

Southold, the rural and bucolic town on the far eastern end of the North Fork, is facing an issue as old as the municipality itself: the age-old fight between residents who want things to remain pretty much the same, and developers who want to build more hotels and motels.

The question of which way to go now rests with the Southold Town Board, which voted 6-0 earlier this spring to hold a public hearing in mid-June on whether to impose a year-long moratorium on new hotels as developers seek to build. Meanwhile, Southold must keep in mind that it must compete with the rest of the East End for valuable tourist dollars.

The moratorium would impose “an interim or temporary suspension on the review, approval and/or issuance of all permits for or relating to new development of resorts, hotels or motels,” according to a town resolution. The resolution said Southold is under “considerable pressure” for the development of new hotels and motels.

Any moratorium, if approved, would not take effect until sometime during the summer, town officials said. Paul DeChance, the town attorney, told Dan’s Papers that the town has five or six proposals to build hotels in the Town of Southold that could be impacted by a moratorium. But hotels that have already received final site plan approval, like the 14-room The Enclaves, or existing hotels seeking to build additions, would not be impacted.

“There was a feeling this issue (of hotel development) needed to be looked at,” DeChance said.

At a recent town board meeting, some residents wanted the board to go beyond hotels and motels and halt all new commercial construction. The board stuck to hotels and motels. If a moratorium is put into effect, town planning officials said that among issues to be discussed would be an analysis of hotel buildout, how many parcels the town has for development, the size of those parcels and an analysis as well of density and hotel rooms per acre.

Could a moratorium hurt the town when it is looking for more tourists? “That issue was considered,” DeChance said.

The town board will be eager to hear from residents about this and other issues regarding the moratorium.

“All the town did so far was set up a public hearing,” DeChance said.

Terry McShane, president of the Mattituck Chamber of Commerce, said his full board has not yet had a chance to consider the idea of a moratorium.

“I’m all for wise planning,” McShane said. A good deal of the town, he said, remains rural, but tourism is a huge economic driver, and hotels, and the restaurants and other spots that would come after hotels, are important to Southold’s future.

While he would not come out and say whether he favored a moratorium or not, McShane said, “The goal of a chamber of commerce is to support local business.”

Southold is one of the least populous towns on Long Island with a population of about 23,000 people, but is popular among New York City residents who visit on weekends and plan vacations there. The town was settled in the mid-1600s, and is known for its historic sites and homes and buildings. But there is concern in the town that development might go too far and Southold would lose its rural character.

One developer has proposed a 121-room hotel in Mattituck that would be impacted by a moratorium. The developer told town officials he might consider a scaled-back proposal. Applications by the Hotel Moraine and the Silver Sands would not be impacted by a moratorium because they are existing hotels.

Two years ago, Southold signed a contract with Ohio-based ZoneCo. to examine its zoning codes to determine whether the codes need to be updated or changed in some other way. The company is expected to complete its work in 2025. The town last conducted a broad update of its zoning code in 1971. That work was based on the code that had been enacted in 1957.

Southold must seek the input of the Suffolk County Planning Commission before implementing a moratorium on new hotels. But DeChance said that the town could override a denial by the county.

The public hearing on the proposed 12-month hotel development moratorium is scheduled for 4:30 p.m. June 18 at Southold Town Hall.