Since first receiving Town Council approval in 2002, Dunstan Crossing, or the Great American Neighborhood proposal, has progressively gotten smaller, and Monday the size dropped again, to 264 housing units on the 142-acre parcel.

When the project first received town approval in 2002 it was 397 units. That project was overturned by a town-wide referendum in 2003, which in turn led the developers, John and Elliott Chamberlain, to sue the town.

The Chamberlains won the case and the town created a new zone for the property, which had been zoned for one home on every two acres. The new zone allowed two units per acre and allowed another 48 units through “bonuses” for affordable housing and land conservation, allowing the developers to build a total of 288 units. During discussion of the new zone Elliott Chamberlain said he felt the area should allow three units per acre.

In July, the Chamberlains presented the Planning Board with a 288-unit mixed-use project. However, after reflecting on the project’s design, associated costs and traffic counts, the developers agreed to move forward with just the affordable housing bonus, reducing the project by 24 units. They presented that plan to the Planning Board Monday night.

The project will be built in four phases and will include row homes, duplexes, multiplexes, single-family homes and senior housing. The project also will include walking trails, a general-purpose playing field, community center and open space parks. The developers estimate the project would take 10 to 12 years to complete.

The Chamberlains told the board they are confident they can overcome any issues that may arise regarding the actual development. However, they were less certain about the traffic improvements they may be required to undertake at the Dunstan intersection.

As part of the project’s initial approval by the Town Council, the state had offered $1 million to improve the Dunstan intersection. However, after the project was overturned by the voter-initiated referendum, the state withdrew the money and it is unlikely that any more will be available.

The Chamberlains are now concerned that they will be required to pay for a significant improvement to the intersection because of the timing and size of their project.

Elliott Chamberlain said that the Dunstan intersection already is failing requires more than a simple fix. He suggested the next major repair at the area could possibly be a complete intersection overhaul.

He felt it was unfair to have him pay for a large improvement project just because his is the newest and largest proposal in the Dunstan area. He noted that there have been numerous smaller subdivisions approved in the area that also have had an impact on the intersection but those developers were not forced to pay for any intersection improvements.

The Chamberlains asked the board to consider creating an impact fee for the Dunstan intersection like the one for Payne Road, in which any developer affecting traffic in the area must pay an amount based on the specifics of the project.

Board members said that they could not change the process. Chairman Mike Wood said the board’s decision would be based on traffic projections and whether or not the project would make the intersection worse than it is now.

“I certainly would not expect the intersection to be unimproved or worse than it already is,” Wood said.

Assistant Town Planner Dan Bacon said the Chamberlains could raise the issue of a Dunstan impact fee at the Comprehensive Plan Committee, of which both men are members.

The board also reviewed Kerry Anderson’s proposed 222-unit subdivision at Oak Hill. The project will have single-family, duplexes and multi-family homes located throughout the development.

The property is located roughly between Black Point Road and Commerce Drive. It will include at least 10 percent open space and a connection to the Eastern Trail.

Board members were happy with the plan, but were concerned about the number of exits into the development. Anderson is only proposing two and said it is unlikely a connection with Ward Street can be made.

Anderson also provided some brief information on another project he is proposing at Oak Hill called Bessey Square. The project is located on a vacant land next to the Bessey School and will entail the construction of three buildings for retail, office and living space.

One building will be 11,500 square feet and will be used for office and retail. The second building will be 9,500 square feet and will include a drive-through window. The third unit will contain 10 live/work units where people can live in the upper floor and work on the first floor.

VIP Auto Stores is requesting board approval to alter the former Bob’s Discount Store on Payne Road into an auto parts store and light maintenance area.

The existing 19,000-square-foot building will remain, but will be renovated to better meet the needs of the auto parts retailer and will include the construction of 14 vehicle bays for small auto projects like oil changes and tire service.