A developer will scale back plans for a controversial housing complex in Westbrook because of a legal conflict with a landowner.

Risbara Bros. is already building nearly 200 single-family homes and apartments at Blue Spruce Farm on Spring Street. In response to high demand, the company applied to extend the subdivision by more than 300 units, mostly apartments.

Worried that the housing boom might strain the city’s roads and schools, some neighbors have called for a 180-day moratorium on residential building permits. Despite those concerns, the second phase of Blue Spruce Farm was on track for approval by the Planning Board this fall.

On Friday, however, company president Rocco Risbara penned a letter to the city to withdraw the current layout. “We will not be moving forward with the project as presented,” he wrote.

The land for the proposed second phase is owned by two separate entities – Westbrook Land Co. and resident Daniel Chick. Westbrook Land Co. is tied to a property management group in Massachusetts, according to property records.

Both properties are under option to Risbara Bros., but the company’s letter to the city suggests Westbrook Land Co. has backed out of the deal for its 29 acres. It is unclear what has caused the dispute, or whether it is related to concerns from residents.

“Due to the fact that the sellers of the Westbrook Land Company have breached the contract by refusing to close, we have been forced to file a lawsuit to compel their performance,” Risbara wrote.

That legal battle could take months or even years. If the land does become available, Risbara wrote that the company would consider it for additional development.

In the meantime, Risbara said development will move forward on the Chick parcel, which abuts the existing neighborhood. While the original proposal included 13 single-family homes, 40 condominiums and 250 market-rate apartments, the revised plans could include slightly more than 100 apartments. The new plans will likely call for nine buildings on 13 acres of land, according to Risbara’s letter.

The developer said redrawing the plans will allow Risbara Bros. to address some of the neighbors’ concerns, including cutting out a proposed public road.

“Buffering to existing neighborhood areas will be increased and easier to achieve with this plan as well,” Risbara wrote.

Bill Risbara, one of the company’s owners, did not return a call for comment Monday. The company will submit new plans to the city in coming weeks.