The developers behind a 30-acre, 1,000-unit housing project near Bug Light Park in South Portland have withdrawn their application for zoning changes needed to advance the development.
The project from PK Realty Management called for mixed-use apartment buildings ranging in size from five stories, to 12 or 13 stories, to be built over one to two decades.
The project faced pushback from some South Portland residents, who said it was too large and was subject to too many environmental risks.
"Their vision is not the vision of the people in South Portland," said Cathy Chapman, founder of the No Yard South opposition group. "It does not align with what people want there in South Portland."
The developer, PK Realty Management, argued that the project fit in with South Portland's comprehensive plan. President Jen Packard said South Portland leadership was not interested in seeing that vision through.
"It has just become really apparent that under the current conditions, with the current leadership and with the current zoning ordinances in dire need of overall, that there's really not a path forward," Packard said in an interview.
The Yard South developers said they are pursuing other options but declined to go into details.
Various proposals at the former shipyard site have come and gone over the last 30 years or so, and Chapman said the opposition group would remain skeptical unless it is clear that the Yard South project will not be pursued again.
Under the Yard South proposal, about 100 of the housing units would be deemed affordable, with income restrictions through an arrangement with the South Portland Housing Authority.
Mike Hulsey, executive director of the South Portland Housing Authority, said he's disappointed the Yard South developers have withdrawn their application.
"There most likely will not be any housing on this site, which is disappointing because of the housing shortage that South Portland and the rest of the state of Maine faces, and also the fact that there was an opportunity for affordable housing, especially on the eastern side of the city," he said.
The developers could have had a chance to address concerns about traffic, flooding and other concerns during planning board, Hulsey added. But the project never reached that stage.
"I was optimistic that the project, at the end of the day, would be a good one," he said.
Environmental remediation will continue, Packard said, as planned on the site later this month.