New London — The City Council this week removed one of the obstacles for future development of the Edgerton School property by conditionally lifting deed restrictions preventing a housing development there.

The move is already being challenged with a petition drive among neighbors of the 120 Cedar Grove Ave. property who have come out in vocal opposition to a plan to build a 124-unit housing development on the 3.3-acre site.

The request to alter the deed restrictions came from the new property owners, Massachusetts-based Affordable Housing and Services Collaborative and Peabody Properties, who are tasked with finding and building a new home for the residents of the Thames River Apartments on Crystal Avenue.

The New London Housing Authority, which manages the federally subsidized high-rise complex, is bound by terms of a 2014 stipulated court judgment to renovate Thames River Apartments or find new homes for the tenants. The agreement was the outcome of a class action lawsuit by residents against the housing authority who complained of unsafe and unsanitary conditions.

Sue Shontell, executive director of the New London Housing Authority, called it “a chance to find a replacement for outdated high rises that segregate a population of our city.” There are about 379 tenants living in the three buildings now.

The sheer number of people and the increase in traffic are among the reasons neighbors of the school property said they oppose the proposal. Some say a low-income development is sure to bring down property values.

Restrictions were initially placed on the deed before the city sold the property to Peter Levine in 2010. Anything beyond the approved list of developments in the deed needs council approval.

Katherine Goulart, who is spearheading the petition drive to force a citywide vote on the deed restrictions, said they were put in place as a protection for neighbors.

“A lot of people want to sign the petition because they want a direct voice,” Goulart said.

Goulart said the reason stated by councilors for their approvals on Monday seem to be directed toward sociopolitical issues and less about the actual deed restrictions.

Shontell said despite the opposition, the Edgerton property presents a great opportunity to improve lives of Thames River Apartments tenants because of its proximity to the schools, a recreational area, employment opportunities and public transportation.

Jeanne Ward, a single mother of four who lives at the Crystal Avenue apartment complex, said she looked forward to moving to a safer environment, outside the shadow of the Gold Star Memorial Bridge and away from the city’s transfer station.

“Please give our children a chance to live in a better environment,” she said. “Please, you guys, look in your hearts.”

While some councilors on Monday expressed skepticism about fitting so many units on the property, they also said they welcomed the possibility of an estimated $200,000 in annual tax revenues.

“I don’t know what planning and zoning is going to do,” said councilor Anthony Nolan, “Do I agree with 124 units, no. That’s not my responsibility. Hopefully, planning and zoning will do their due diligence. For me to know that I could help create an environment to make someone’s life better — I’m going to do that.”

Councilor Efrain Dominguez agreed.

“We should do it for one simple reason: We care,” Dominguez said.

Councilors John Satti and Martha Marx voted against the lifting of the deed restriction. Satti said he thought there were “better plans out there,” and the housing authority should be working on them. He said he was also not in favor of tearing down the high rises. He said he thought they could be rehabbed and serve some future use.

Affordable Housing and Peabody are now in the due diligence phase, reaching out to abutting property owners about possible options on their properties, exploring a Colman Street site for sale and looking at possible connections between the development and adjacent Veterans Field.

Attorney Mathew Green, who represents the land owners, said they are poised to spend tens of thousands of dollars on surveys, engineers and other professionals to develop plans for the site.

“My clients want to build a great development that is beneficial to the neighborhood, to the residents and to the city as a whole — something the city and neighbors are all going to be proud of,” Green said.

In addition to removing deed restrictions, the City Council on Monday announced and authorized a memorandum of understanding between the city, property owners, Renaissance City Development Association and New London Housing Authority regarding the future of the land where the high rises now stand.

While the housing authority will own the property once it is vacated, the memorandum contemplates the city and RCDA taking the lead on seeking funding for possible demolition and later use of the property.

g.smith@theday.com