Southold extends moratorium on new hotels

Southold Town is prolonging a moratorium on new hotels for another year, stalling several proposals as one developer seeks an exemption for a Mattituck hotel.

After a public hearing Wednesday, the town board voted 5-0 to extend the development pause as it grapples with the role of tourism as an economic driver in the region amid a zoning update.

“As the zoning update process has progressed, we have had a lot of … very constructive comment on some of these matters, including hotel use and hospitality use in general,” Supervisor Al Krupski said Wednesday.

Southold enacted the moratorium last year as it launched a zoning project town officials say is the first major update since 1989. Using recommendations from its 2020 comprehensive plan, the town is updating its code to include modern land uses and clarify rules while seeking to preserve the town’s rural identity.

Town officials, citing the ongoing zoning initiative, say they need more time to study the impact hotels could have on infrastructure, resources and traffic. An April county planning report estimates there are currently 337 hotel and motel rooms in Southold Town, and five proposed new hotels would bring the total to 515.

A hearing on extending the moratorium drew broad support from residents Wednesday.

Elizabeth Brittman, of Southold, said there are plenty of hotels in neighboring Riverhead.

“We’re just pushing it out here,” she said. “Let’s just take the breath … to think about where we’re headed.”

The proposed new zoning code could be more restrictive on hotel development, prohibiting them in certain business districts and setting a maximum room count at five per acre, according to a draft of the proposal.

Waterfront hotels would be capped at 30 rooms, regardless of lot size, “to limit impacts to the environmentally sensitive shoreline,” under the draft.

One developer seeking to build an 81-room hotel at a former bank complex on Main Road in Mattituck has asked the town to consider an exemption, allowing a review of the application to proceed.

The town board put off a final decision on whether to grant the waiver Wednesday, after receiving a range of views on it.

Chris Kent, an attorney from Farrell-Fritz for developer D’Wayne Prieto, said the hotel would be built within the existing 77,000-square-foot footprint, which has been vacant since 2011. He said the hotel would revitalize the area and generate tax revenue, adding the developer does not plan to seek any tax abatements for the project.

Several residents urged the town to adhere to the moratorium.

“Given how far along the town is in restructuring the zoning code, it probably makes sense to wait until that’s complete before moving forward with any projects like this,” said Eric McClure, of Mattituck. “One thing that this town needs more than hotels is permanent housing for people.”

Vincent Guastamacchia, of Southold, spoke in favor of the exemption and said hindering hotel growth deals a “direct blow” to surrounding businesses that benefit from tourism.

“It’s an existing structure that’s sitting there that is generating zero tax base for our economy,” he said.

Krupski said the board has “a lot to consider” and a vote could come as soon as June 10.

“If the town is going to make any meaningful strides in controlling the short-term rental problem, I think there’s definitely a demand for hotels,” Krupski said in an interview. “I have an open mind on it.”