Southold Town Planning Board Extends Enclaves Hotel Project

News Summary

The Southold Town Planning Board has granted a six-month extension to The Enclaves hotel project amid community concerns over delays, stockpiled sand, and financing issues. Developers are facing challenges, including the withdrawal of a $25 million financing commitment and opposition from local residents regarding potential impacts on the neighborhood. The ambitious project includes a hotel, restaurants, and event spaces and is expected to resume construction soon, provided certain conditions are met.

Southold Planning Board Extends Enclaves Hotel Project Deadline Amid Community Concerns

The Southold Town Planning Board has granted a six-month extension for The Enclaves hotel project, allowing developers additional time amid ongoing concerns from local residents. The extension was approved during a board meeting held on July 14, 2025, following complaints about long periods of inactivity and large stockpiles of sand at the construction site.

Neighbors have expressed increasing frustration over the lack of visible construction progress, which has persisted for several months. As local concerns mount, the Planning Board sought an explanation for the delays, focusing on the project’s impact on the surrounding community.

In a letter dated June 12, the developers’ attorney, David Altman, reported that a crucial financing commitment of $25 million from Dime Bank was withdrawn due to regulatory issues. However, he noted that they anticipate securing new financing in the next three to four months, which will facilitate the continuation of the project.

The Enclaves hotel project is designed to include 44 guest rooms, four cottages, a renovated house for a 74-seat public restaurant, an additional dining establishment exclusive to hotel guests, a spa, meeting spaces, lounges, and various areas for events. Overall, the project spans nearly 73,000 square feet of new construction on a 6.75-acre property situated on Main Road in Southold, directly across from the Southold 7-Eleven.

This initiative received its original special exception use permit from the Southold Town Zoning Board of Appeals back in December 2021 and was granted site plan approval by the Planning Board in June 2023. However, the initial site plan approval expired shortly before the extension approval, on July 9, 2025.

The estimated cost of the entire project stands at around $44 million, a figure that has attracted significant interest. In January 2024, the Suffolk County Industrial Development Agency approved tax abatements valued at $2.75 million to support the development.

Despite financial backing, the project has met with considerable community opposition, particularly focusing on the potential strain on local infrastructure and services. Some residents have raised concerns about the public benefits of the hotel and its fit within the community landscape. The Planning Board Chairman, along with the Supervisor, has also shared worries about the adverse effects the hotel might have on Southold.

In light of the construction delays, the Planning Board has mandated the developers to provide a detailed explanation for the inactivity, along with a coherent timeline for project completion. Moreover, additional conditions for the six-month extension include the submission of updated approvals from the highway and health department, the stabilization of the open soil and sand piles, documentation of the new financing, and a comprehensive outline of work that must be completed by December 2025.

Residents are particularly concerned about the significant sand piles on site, questioning whether materials have been appropriately managed or removed. Planning Board staff have highlighted the importance of complying with updated permits as the existing highway work permit and health permit are approaching their expiration or necessitate revisions.

While the legal representative has indicated that some of the delays result from opposition from town officials, he asserts that the developers remain fully committed to bringing the project to fruition. Currently, a security fence encircles the site, indicating that work has indeed stalled.

The Planning Board’s unanimous approval of the extension aims to ensure that the Enclaves project can move forward with an updated plan, adhering to the requirements outlined during the meeting. The developers are expected to resume construction work around September 2025, with an overall duration projected to take approximately 14 months from that point onward.

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Additional Resources

• East End Beacon: Enclaves Hotel Extension
• Suffolk Times: Enclaves Hotel Tax Breaks
• Patch: Enclaves Hotel and Restaurant Vision
• Encyclopedia Britannica: Hotel Development
• Google Search: Southold Hotel Project