Soundview Associates v Town of Riverhead

In 1983, Soundview Associates (Soundview) granted a scenic easement to the Town of Riverhead as part of a land use approval process for a condominium development. The easement protected a 6-acre parcel of land called the “Recreation and Open Space Preserve” in the easement. The easement did allow certain recreational activities and structures, such as a golf course and related structures, including a clubhouse and restaurant and retail stores specializing in golf, tennis and swimming equipment. The easement also allowed “any other compatible recreational uses.” In 2002, Soundview sought to build a 78,100 square foot residential resort and spa facility on the protected property. Soundview argued that because the Town’s land use ordinances defined spas as a recreational use, therefore the entire facility was a “compatible recreational use” within the meaning of the scenic easement. When the Town rejected this application, Soundview filed suit in state court, lost at the trial court level, appealed, and eventually withdrew the appeal. In 2009, Soundview brought a due process federal court case against the Town.