Developers sue the Village of Rockville Centre for $7 million in damages

Controversy continues to loom over the development of 220 Hempstead Avenue in Rockville Centre, where a 1.75-acre parcel of property was subdivided to allow for the construction of six new single-family homes — three of which are already built, including one double lot.

The site, which was the former parsonage of St. Mark’s United Methodist Church was initially sold in 2014 with the intent of demolishing the structure and creating new lots for the development of single-family residences. 

While construction of three of the properties is now complete, the developers, James and Brett O’Reilly, filed a federal lawsuit against the Village of Rockville Centre in June.

Based on the court documents provided by their attorneys with the law firm, McLaughlin and Stern, the O’Reillys are seeking $7 million in damages over claims that the village intentionally attempted to stall the “as of right” subdivision of the property for nearly six years.

The lawsuit further stipulates that the village used its authority over local land use ordinances to stymy the lawful development of private property for its own political purposes.

During this time span, the O’Reillys’ plans for development were subject to changes to the municipal code, a moratorium on specified development that was later struck down by the state Supreme Court, two prior lawsuits against the village and the land use board and numerous public hearings.

While the O’Reillys ultimately prevailed and would secure the right to develop the property in the summer of 2020, their attorneys argue that the innumerable delays caused by the village board were intentional to halt the development of the project, which was largely unpopular by residents, while the village had approved other similar subdivisions in approximately a year’s time.

The developers also state that during this period of time, they accrued several fees including carrying costs and interest payments associated with the financing and construction of the development property.

“My family called Rockville Centre home for 70 years,” James O’Reilly said in a statement. “But, because my wife and I bought a 1.75-acre property and planned to develop it with beautiful new homes — all in compliance with the Village’s zoning regulations — we were subjected to over six years of abuse, lawsuits and mistreatment from the village that caused us to leave Rockville Centre.”

O’Reilly stated that his family had called Rockville Centre home since 1949, but because of the tensions created in the community over the proposed development, was compelled to move out entirely.

He said that what should have only taken a year to approve ended up taking them six years to complete and resulted in “slanderous personal attacks against my family and me — attacks that the Village Board of Trustees and Land Use Boards permitted in public hearings and even encouraged.”

“None of this was appropriate or necessary,” O’Reilly said. “Now my wife and I have filed a federal lawsuit seeking to recover damages against the village for its violations of our constitutional rights. I am sorry that the residents of the village had to see their tax dollars wasted unsuccessfully defending two prior litigations associated with this project. The residents will again have to endure the financial pain of a third litigation, inclusive of damages, that is solely caused by the illegal actions of their arrogant elected officials and members of the villages’ land use boards.”

The lawsuit alleges that the village, in its conduct to delay the project violated the developers’ constitutional rights to due process, equal protection, and free speech. It further requests that the case be resolved via trial by jury. 

While the initial subdivision approval provided for six individual lots, only three homes have been constructed, including one home on two combined lots. The remaining two lots have yet to be built.

The development also included the creation of a new street, Birch Lane — formerly Killarney Lane — which runs perpendicular to Hempstead Avenue.

By July 2021, the O’Reillys no longer retained ownership of the properties, which, according to their attorney, had been taken over by separate buyers.

In response to the lawsuit, Rockville Centre Mayor Francis Murray told The Herald that the village “cannot comment on ongoing litigation.”