🔒Court approves scaled-back 120-unit Vessel apartment project in Newtown, ending legal battle

A state Superior Court judge has approved a settlement allowing New York-based Vessel Technologies to move forward with a scaled-back 120-unit apartment development in Newtown, ending the developer’s legal challenge to the town’s rejection of the project. The agreement resolves Vessel’s appeal of the Newtown Planning & Zoning Commission’s February 2025 denial of plans for two apartment buildings on a roughly 5.2-acre site at 4 Berkshire Road and 22 Oakview Road, near Interstate 84. Vessel, which builds modular apartment communities across Connecticut, had originally proposed a 136-unit development under the state’s affordable housing statute, known as 8-30g. The law allows developers to appeal local denials of qualifying affordable housing projects, requiring municipalities to justify their decisions in court. Under the settlement, the project will be reduced to 120 units, with one of the two buildings cut from four stories to three. Thirty-six apartments will be deed-restricted for 40 years for households earning no more than 80% of the area median income, down from 41 affordable units in the original proposal. Vessel also agreed to pay the town $350,000 for sidewalk and trail construction. Half is due when the first building permit is issued, with the balance payable when the first certificate of occupancy is issued. The developer will also pay $25,000 to a group of neighboring residents who intervened in the case. Additional changes include evergreen screening along Oakview Road, vehicle access limited to Berkshire Road and a gated emergency exit intended to discourage pedestrian traffic onto the residential street. The project still faces a significant obstacle: water service. The commission denied Vessel’s application after the developer failed to secure an unconditional commitment for water service from Aquarion Water Co. The utility has suspended new water connections in the area after flooding and a collapsed culvert knocked a wellfield serving Newtown out of service. Aquarion has said it has enough water capacity to serve the project once the wellfield is restored, but repairs cannot be completed until the culvert is replaced. No timetable has been announced. Under the settlement, Vessel cannot begin construction until it receives a final, unconditional commitment letter from Aquarion. The project approval is effectively on hold until then. If the letter is not issued within 15 years, the approval expires. The Planning & Zoning Commission voted in late May to settle the appeal, and all parties, including four neighboring intervenors, agreed to waive any further appeals. Announcing the court’s approval, Vessel founder and CEO Neil Rubler said the settlement “reflects the value of constructive engagement” and advances needed housing while addressing local concerns. Connecticut’s shortage of housing has made 8-30g a frequent source of conflict in suburban communities, where developers have used the law to pursue denser affordable housing projects than local zoning would otherwise permit. Vessel has proposed similar developments elsewhere in Connecticut, including in West Hartford. Last month, Glastonbury's zoning commission approved a 44-unit Vessel project on Krieger Lane after losing a three-year court battle over the proposal.