Mystic — The Stonington Planning and Zoning Commission unanimously approved a master plan to develop the former Mystic Color Lab site into 42 condominiums following a public hearing late Tuesday night.

Greylock Property Group LLC gained approval of its master plan to build the condominiums in seven buildings placed around a central courtyard on the five-acre site.

Called Mystic Harbor Landing, the proposed $20 million project would have 13 fewer units and 26 percent less square footage than a previous plan for the site that called for a large single structure.

Greylock will now have to return to the commission for approval of its site plan, which also would require another public hearing.

During Tuesday's hearing, Town Planner Keith Brynes told the commission that in his opinion the master plan is an improvement on the previously approved plan for the site.

Greylock attorney Bill Sweeney told the commission the project has been downscaled in almost every way compared to the earlier approval and would be compatible with the neighborhood. He said a brick wall, which is the only structure remaining from the original mill, is so deteriorated, it cannot be saved. But he said attempts will be made to salvage the brick so it can be reused on the site. In addition, some type of memorial will be placed on the site to recall its historical uses.

He pointed out that the town’s Plan of Conservation and Development calls for the redevelopment and reuse of historic mill sites, something the project does.

Sweeney told the commission that the abandoned and overgrown property has a long history of failed development along with piles of contaminated soil. He called it a “white elephant” in a neighborhood which is seeing new investment with the planned renovation and expansion of the adjacent YMCA.

“This is a property in desperate need of redevelopment and shouldn’t sit idle for another decade,” he said.

Sweeney said the units would cost between $470,000 and $550,000, and conservatively generate between $45,000 and $65,000 in annual net tax revenue for the town. That number could be much higher, as the project is not expected to attract families with schoolchildren.

During the hearing, Economic Development Commission Chairman Dave Hammond told the commission that the tax revenue generated by the project would be closer to $300,000 a year.

The project would be built in three phases and the timing would depend on market demand for the units.

Sweeney also said traffic generated by the project is “a drop in the bucket” compared to other traffic generators in the neighborhood.

But Masons Island resident Steve Wolinsky pointed out the existing congestion at Route 1 and Masons Island Road and said the project would worsen the problem. He then checked off a "No" box on a large chart he titled "Good for Mystic?" Using drawings, photos and maps, he went on to point out how other aspects of the project, such as the size of the building, do not fit in with the character of Mystic. He said approval of the project will open the floodgates to other large projects that are not in keeping with the size and scale of residential development in town.

"For me this is another 'No,'" he said, checking off another box. 

He then explained why he felt the design is "very dangerous" from a public safety perspective.         

Greylock has had a contractual agreement with the property owner, Edgewood Capital of Southport, to explore potential development possibilities for the property.

In the fall of 2014, Edgewood had sought approval of modifications of a previously approved plan for 55 luxury condominiums. But the commission rejected the application after a group of neighbors opposed the changes.

Commission members cited the size and mass of the plan as well as their desire to maintain the character of the mill as reasons for their opposition. Edgewood then put the property up for sale.

Another group had obtained the initial approval to develop the site in 2005. It demolished most of the mill, cleared the site and began an environmental cleanup. But that project stalled with the downturn in the economy.

j.wojtas@theday.com