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 Town Planning Board Grants Six-Month Extension for The Enclaves Hotel Project Amid Community Concerns

In a recent decision, the Southold Town Planning Board has approved a six-month extension for the proposed Enclaves hotel project. This comes after considerable community complaints and disruptions in construction activities. The extension was confirmed during the Planning Board’s meeting held on July 14, 2025.

Local residents have expressed frustration over the large piles of sand accumulating at the site and noted the lack of visible progress on the construction for several months. Reports indicate that the project, which includes over 73,000 square feet of hotel and restaurant space, has faced ongoing challenges related to financing and regulatory approvals.

The delay in construction has been largely attributed to a withdrawal of the initial financing commitment from Dime Bank, valued at $25 million. This financing issue was noted in a letter from the developers’ attorney on June 12. The developers are currently seeking new funding and are optimistic about securing it within the next three to four months.

The Enclaves project aims to bring together a variety of amenities, featuring a 44-room hotel and four guest cottages, alongside a 74-seat public restaurant and a separate dining venue for hotel guests. Additional offerings include a spa, meeting rooms, lounges, and versatile event spaces designed to cater to different needs.

Located on a 6.75-acre property on Main Road in Southold, directly opposite the local 7-Eleven, the project received its special exception use permit in December 2021, followed by site plan approval in June 2023. The initial approval was set to expire on July 9, 2025, prompting the recent request for an extension.

With an anticipated total project cost of approximately $44 million, the Enclaves project was granted tax abatements worth $2.75 million by the Suffolk County Industrial Development Agency in January 2024. Despite these incentives, many community members have raised concerns about the project’s potential impacts on local infrastructure and the benefits it would bring to the community.

Planning Board Chairman and Supervisor Al Krupski have expressed reservations about the potential detrimental effects of the project, emphasizing the need for the developers to address community concerns. In addition to granting the extension, the Planning Board has requested that the developers provide a clear explanation for the inactivity on site, along with a detailed timeline for the project’s completion.

According to the developers, they have invested over $3.9 million in the project thus far and remain committed to its success. The projected timeline estimates that construction will resume in September 2025, leading to a total duration of 14 months for the completion of the project.

To proceed with the extension, the developers must fulfill certain conditions, including submitting updated approvals from the highway and health departments, stabilizing the open soil and sand piles, providing documentation of the new financing, and outlining the work to be completed by December 2025. Compliance with updated permits has been stressed, as some previous permits are nearing expiration or require modifications.

Neighbors have continued to voice concerns about the stockpiled sand on site and whether any materials had been removed or properly accounted for. The lack of visible progress, coupled with community opposition, has led to added scrutiny from town officials, but representatives for the developers remain resolute about their intentions to move forward.

A security fence has been installed around the property, indicating the ongoing nature of the project even during the periods of stalled work. As the Enclaves hotel project moves forward, the Planning Board’s commitment to ensuring all necessary community benefits and project viability remains a focal point for continued oversight.

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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