As progress trudges on for an Oak Bluffs housing project years behind schedule, some Islanders have raised an alarm over what they see as the developers’ attempt to renege on obligations through permit changes.
Starting about a decade ago, town officials and developers negotiated for years to set the parameters for the Lagoon Ridge development, a 30-acre set of three subdivisions near the southern end of Lagoon Pond. The project was originally proposed to offer affordable housing and senior housing, and would also set aside acres of conservation space — all ingredients for a Vineyard-friendly project.
In exchange, town planners gave the developer special provisions to develop more densely. The subdivisions, along with around 20 acres for conservation, would consist of 23 lots for housing — two affordable lots, with four units of housing.
It was the first time the town had worked with a developer to grant a special permit through a process referred to in the town’s bylaws as a flexible development.
But since its approval in 2018, the original developer has died of a tick-borne illness; with a new developer in, senior housing is no longer part of the project, and the affordable housing has yet to be built. And some residents worry that town planning board members — most of whom were not in office during the initial approval of Lagoon Ridge — might grant approval to move forward without protections in place that would hold the developers to their original promises.
While Ryan Roy, project manager with Lagoon Ridge, said he’s “fully committed” to meeting the obligations in the special permit, some Islanders worry that not following the permit as it was currently written erases a guarantee for the affordable housing units, and could set a precedent of developers returning to regulators to get a more favorable result — especially if something outside the developers’ control hinders the project. “That becomes a slippery slope,” planning board member Chris Chambers said during a board meeting last month.
The issue came to a head at a recent Oak Bluffs planning board meeting. Representatives of Lagoon Ridge came before the board on Oct. 23, requesting modifications to the development’s special permit that they say would allow them to acquire the funding to finally build the affordable housing. The board took no action on the request, other than voting to close the public comments. It will return to the matter on Nov. 13.
The Lagoon Ridge subdivisions are organized in three separate clusters along parts of Double Ox Road, Hope’s Way, and Sage’s Way. Many of the lots in the middle cluster are already sold and houses have been built, except for the four units of affordable housing planned to be built as duplexes.
Lagoon Ridge representatives want to alter how the conservation restriction is managed, as well as the build-out schedule. Instead of hiring an outside party, the developers proposed shifting the responsibility of monitoring and managing the open land around some of the project site to the Lagoon Ridge homeowners association, with room for the town to enforce regulations and be reimbursed by the association. Instead of one contiguous area, developers also asked for more flexibility for where the open space would be located on the 30 acres. Additionally, the developers want to be able to sell lots in the other two clusters before the affordable units are built, citing a need to gather funding.
As the town originally approved in 2018, the developers would be required to hire a conservation organization to monitor and manage the open land around some areas of the project site — a step needed before more lots can be sold in the undeveloped clusters. The permit currently requires that the affordable units be built and issued occupancy permits before certain lots in the other subdivisions can be sold.
If the board approves the requests, it would be the third iteration of the special permit. In 2018, the Oak Bluffs planning board granted a special permit for Lagoon Ridge to Davio Danielson, the original owner of the project, after undergoing five years of “permitting purgatory” and months of back-and-forth deliberation. It was the first and only project to have been approved under the flexible zoning bylaw, which allows for dense developments in exchange for the preservation of natural resources and New England landscapes. The bylaw states at least 40 percent of the property should be contiguous open space. The bylaw is also meant to promote the construction of housing at affordable rates, and for Islanders 55 and older.
But Danielson died from tularemia the same year he was awarded the special permit. In a search for someone to take over the project, the Danielson family was eventually referred to CapeBuilt, a Cape Cod developer of cottage-style custom homes; the developer purchased the project in 2021. A permit modification after the project changed hands also led to a slight bump in proposed affordable housing units, from three to four.
Oak Bluffs resident Ewell Hopkins, who chaired the planning board when Lagoon Ridge was originally approved, said the special permit was granted to Lagoon Ridge because the project would have served a microcosm of the Vineyard community: affordable housing, senior housing, and open space for the public.
But right out of the gate, a key asset of the project fell through. Five affordable units restricted to individuals 55 and older were removed from plans after the state Department of Housing and Community Development deemed the condition a violation of the federal Fair Housing Act in 2022. The law prohibits sellers from barring families with children as buyers unless at least 80 percent of the development’s units are restricted to those 55 or older.
Hopkins, worried that even more of the benefits of the project could fall through, cautioned the planning board against approving the requested changes, noting it would give the town no leverage over enforcing the development of affordable units. He called the proposed changes “an insult.”
“Do what you’re obligated to do before moving forward,” Hopkins said. He said the developer should stop and reapply under new terms if the current special permit obligations couldn’t be met.
Concerns over whether the affordable housing would be guaranteed were also raised by planning board members. Chambers, at the October meeting, said the proposal was essentially asking the board to “negotiate with ourselves,” and could lead to more people coming to them when faced with forces outside their control — such as a recession, supply issues, or a pandemic.
Chambers also underscored that with the proposed approach, there was a possibility the affordable units wouldn’t be funded.
The developers, in exchange, proposed entering into a funding agreement with the town. Project attorney Eric Peters floated a “tripartite agreement” in which an escrow account held by a bank could establish a payoff schedule for the affordable units as lots were sold. Roy said that idea was safe from a “risk-adjusted perspective,” but he couldn’t make absolute guarantees.
“If you’re asking me what’s the probability China drops a nuke somewhere and makes Martha’s Vineyard radioactive, it’s less than 1 percent, hopefully,” Roy said. “I can’t tell you with 100 percent certainty on anything.”
Developers also highlighted that they have been facing significant roadblocks. Roy said the initial plan was to bring modular homes to the site, but they faced supply-chain challenges and delivery issues during the COVID-19 pandemic. He also said there was difficulty during the pandemic in finding truck drivers and a police escort, and scheduling a barge from New Bedford — all requirements of working on an Island.
The biggest issue Roy cited was the delivery of four homes. Around nine lots were under contract to be developed with modular homes, but when the first four were delivered, there was “water infiltration” in the boxes, and they were infested with mold. He said these units had arrived 80 percent complete to the site, but were stripped down and underwent lengthy testing as safety precautions.
A lawsuit is ongoing against the modular homes company, which Roy alleged improperly wrapped the homes and led to the mold incident that was “nearly a death knell” for the project.
Additionally, Roy’s business partner from CapeBuilt left the project.
“I’m exhausted, but optimistic on where we can go,” Roy said. “It’s been a lot.”
Roy noted that the proposal would hold back the sale of the two higher-valued lots as a “good faith” measure toward developing the affordable housing.
“We’re not asking you for everything,” Roy said of the permit changes.
As for the open space, the project is meant to be 60 percent open space. However, Peters said that since changing circumstances led to the sale of lots over properties with built homes, the building envelopes are “roving in nature.” He said it would be helpful to have more flexibility on where buildings are built, although the size of the open space wouldn’t change.
Peters said they asked one private organization, the Sheriff’s Meadow Foundation, if it would manage the open space, but it declined. Peters also noted that the town conservation commission declined, and the organization he had been chair of since 1995, the Vineyard Open Land Foundation, wouldn’t be interested. But he had not reached out to any other conservation organizations to potentially take up the mantle.
“Most conservation organizations will not accept a restriction on a residential subdivision such as this,” Peters said, citing the expense and time involved with tasks like inspections.
Peters also said the arrangement would need to be approved by the state Department of Environmental Protection, a process he described as a “boondoggle” that could take up to a year. Changing the restriction is expected to speed up the process, and Peters said each property covenant would come back to the board for review.
Although the arrangement could be difficult with multiple property owners to deal with, Vineyard Conservation Society Executive Director Samantha Look underscored a need to preserve the conservation restriction as it was written in the permit, stating that it was a part of why Lagoon Ridge as a whole was approved in the first place.
While Look didn’t say whether her organization would manage the conservation restrictions, she said it was “very concerning” that the developers hadn’t reached out, and that the Society “would love the opportunity to have the details in front of us.” She said all avenues “need to be exhausted before changes are made” to the permit.
The Oak Bluffs Planning Board webpage documents the history of the subdivision: https://oakbluffsma.gov/313/Lagoon-Ridge-Subdivision
I dearly hope that people keep an eye on this development. Housing for seniors and workforce families should be front and center.
Subject: The Lagoon Ridge Special Permit Modification Request – Necessity Reopening Planning Process
The request from the owners of Lagoon Ridge for modifications to their Special Permit is a clear attempt to renege on established permitting obligations.
The Town granted this Special Permit—the first and only one under the flexible development bylaw—based on specific, good-faith negotiations that justified a dense, 30-acre subdivision near Lagoon Pond. Those negotiations hinged on the provision of significant community benefits, including affordable housing, senior housing, and substantial conservation space.
This modification request should not be viewed merely as minor administrative changes; it is an effort to fundamentally alter the terms that justified the original density.
If the applicant cannot honor the current conditions of the Special Permit, the planning process must be formally reopened. Specifically, Cluster C should be completed under the existing, agreed-upon terms, and the applicant must be required to reapply for Clusters A and B under a new subdivision application process. The original density granted cannot be justified without the full fulfillment of the Special Permit’s negotiated conditions.
Ewell Hopkins
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