A frequently asked question in Ellenville over the past year and a half has been: What might appear on the site of the former Terrace Motel?

The building, steeped in mid-century artistic themes and dreams, was demolished in 2024 after an effort to restore it foundered on the immense cost of asbestos removal and mitigation.

On Wednesday, October 21, the property’s new owners, led by Phil Coombe of Coombe, Bender & Co., brought an application before the Village Planning Board, seeking approval for a major redevelopment of the 8.2 acre site.

The initial site plan proposes a resort called the Shawangunk Ridgeview Terrace, featuring 30 luxury “Amish-made” cabins and a central 5,000-square-foot building located approximately where the old motel once stood. The cabins would be arranged to the north and west of the central building.

And this is where things get tricky.

The parcel is split-zoned. The portion closer to Main Street South (Route 209) is zoned B-3, the Highway Business district, where hotels and motels are permitted uses. The western half of the property, however, is zoned R-1 Residential, where hotel and motel structures are not permitted.

Village Planner Kevin Corte attended the meeting via Zoom. Some initial confusion arose because the application straddles the concepts of a motel, hotel, and resort, none of which are currently permitted in the R-1 district.

Corte explained that the Village Board would ultimately have a role in resolving the zoning issues. He went further, stating, “No resort use is allowed in the R1. You will need a use variance from the ZBA for a Resort.”

Coombe explained that the applicants were not seeking to change the zoning to B-3 Highway Business because, as he put it, “neighbors would not approve.”

B-3 zoning is also applied to two other stretches of highway leading out of Ellenville: the northern stretch of Main Street, across the Beer Kill bridge, and sections of the roads exiting the village to the west, including Route 52 and Cape Avenue.

In both of these other areas, some parcels are split between B-3 and R-1 zoning. Along North Main Street, several deep parcels span three different zones: B-3 along the road, R-1 behind it, and R-1A at the western end.

Zoning Changes?

Back in May, the Planning Board sent a recommendation to the Village Board to change some of the zoning. The Village Board subsequently scheduled a public hearing on the issue for August but later withdrew it.

Mayor Trent responded to an inquiry about the decision, saying, “We looked into different areas of the village, places like Glass and Hoar Street, the Terrace Property and Elting Court, to see how zoning changed over time. With each area we ultimately did not move forward due to some nuance that needed larger consideration. In the case of the Terrace property, a number of the adjacent R-1 property owners expressed concern over the change to B3 on the rear of the Terrace property. We decided not to move forward at that time to allow for more consideration.”

One possible solution, raised during the Planning Board discussion, would be to replace the R-1 zoning at the rear of the parcel with R-A zoning.

R-A Residential is the zoning designation used for Stoeckeler Memorial Park and Golf Course. Although R-1 and R-A have different rules, those differences may not preclude the “tourist cabins” proposed for the new resort.

According to Corte, “Rezoning from R1 to RA would require the Village Board to pass a local law to that effect.”

Any such law would need to be carefully drafted to avoid potential litigation over spot zoning. Spot zoning generally refers to changing zoning regulations for a particular parcel in a way that gives it special treatment inconsistent with the broader zoning plan.

Property Plans

The plans also call for a swimming pool, recalling a feature of the old Terrace Motel that many longtime residents will remember.

The new owners are also purchasing the triangular parcel along the southern edge of the property, which has been used for various dance clubs in recent years. They plan to turn it into a restaurant and bar, bringing back a version of the much-loved Terrace bar.

Finally, the new owners plan to sell a corner of that parcel to the Ellenville Fire Department, making it easier for the department to access the highway from its proposed new building.

Other questions raised during the meeting concerned the village’s new short-term rental law and whether a motel could be exempt from its restrictions. One particular concern is the limit on lodging use to no more than 90 days per year.

That issue, along with several others, will be discussed as the application moves forward. First, however, the zoning conundrum will need to be addressed, with the Village Board likely playing a central role in determining the path ahead.