H
eatherwood Communities is suing the town of Hempstead after its zoning code was repealed, halting a 309-unit development project. The Commack-based developer claims the repeal's lack of a grandfather clause is illegal and violates state law. At stake is a $154 million project that has been delayed due to various setbacks.
In 2019, Hempstead adopted new zoning designations to encourage multifamily development in Inwood and North Lawrence. Heatherwood pursued a project on adjacent parcels after the rezoning, investing over $27 million in purchasing the land and related costs. The town's Industrial Development Agency approved a 25-year tax break agreement for the project in 2021.
Despite delays, Heatherwood started making payments under the agreement in 2023, contributing over $431,000 so far. However, the town announced plans to repeal the zoning code in May, with no grandfather clause for projects already in progress. The repeal was finalized last month without a grandfathering provision, prompting Heatherwood's lawsuit.
