The town of Stonington has resolved a contentious land-use dispute by agreeing to a court-brokered settlement that clears the path for 80 new townhouses, including affordable units, on the grounds of a shuttered nightclub.
The agreement, negotiated in state Superior Court, effectively halts the municipality's legal battle following its initial rejection of the project in December. Under the final terms, developer Gene Arganese agreed to reduce the development by just three units from the originally proposed 83 townhouses, while offering several minor design adjustments in exchange for unconditional local approval.
Central to the dispute is Connecticut's statutory framework governing affordable housing, which shields qualified residential proposals from standard local zoning denials. Because the Pawcatuck plan allocates at least 30 percent of its total inventory as affordable housing, it falls under specific state protections intended to help expand Connecticut's limited stock of lower-cost residences.
Under these state regulations, a local land-use board cannot reject a protected housing application unless it can prove that legitimate, demonstrable public health and safety concerns strictly outweigh the community's broader need for affordable residential options.
Recognizing the difficult legal landscape, Stonington's Planning and Zoning Commission formally voted to ratify the settlement during a meeting held earlier this month. Formal legal documents establish that both the municipality and the developer agreed to resolve the appeal without either party admitting error, wrongdoing, or legal liability, aiming to avoid the mounting costs, prolonged delays, and unpredictability of ongoing litigation.
The legal action in Stonington mirrors a well-established pattern across Connecticut courts. When developers challenge local commission rejections of protected housing projects, the resulting appeals almost universally conclude with negotiated settlements or direct judicial orders instructing municipalities to reverse their rejections and approve the plans.
During an appearance before the Planning and Zoning Commission in November, Arganese highlighted the pressing necessity for such housing in the community. He informed local commissioners that local housing demand is immense while the available inventory remains exceptionally restricted.
The developer maintained that the planned townhouses are designed to provide essential workforce housing. He stressed that the homes would offer realistic, accessible options for vital community members, such as public school teachers and blue-collar workers seeking to live within the town.
The designated property encompasses a four-acre parcel located on Route 2 in the historic Stonington village of Pawcatuck. The real estate was previously occupied by Rosalini’s, an entertainment venue and nightclub that ceased operations in 2023.
Geographically, the development location sits immediately west of the Rhode Island border and roughly 15 minutes southwest of Foxwoods Resort Casino, placing it in a well-traveled regional corridor.
The agreement addresses a persistent dilemma in Stonington, a seaside community widely celebrated for its coastal allure, historic landmarks, dining establishments, and specialty boutiques. Despite earning praise in regional publications as one of New England's most scenic coastal destinations and prettiest seaside villages, the town contends with a severe deficit of affordable places to live.
Under the provisions awaiting final judicial sign-off, 24 of the 80 approved units will be reserved as designated affordable housing. The reduction in total unit count from 83 to 80 represents the primary numerical concession made by the development team.
In addition to shaving three units, the developer agreed to implement specific layout and safety modifications. Meeting minutes from the Sept. 1 session where commissioners ratified the pact indicate that Arganese will reconfigure building layouts, incorporate a new pedestrian crosswalk, and formally request state Department of Transportation approval to widen a section of Route 2 to improve bus stop safety.
Stonington’s decision to settle illustrates a broader statewide trend among Connecticut municipalities. Multiple towns have ultimately abandoned fights against protected housing applications after incurring tens of thousands of dollars in municipal legal expenditures.
Similar legal confrontations continue to unfold in other parts of the state as communities push back against state-mandated housing developments. In Newtown, for instance, builder Stephen Shapiro is currently pursuing a court appeal after local zoning authorities turned down his proposal to construct 300 apartments with affordable units along a developing section of Route 6 near Bethel.
With the Stonington settlement now ratified by town officials, the formal conclusion of the litigation awaits routine final approval from the presiding Superior Court judge before construction can proceed on the former commercial site.
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