LAKEVILLE — Rhino Capital presented their new plans to build housing on the former Hospital site in Lakeville at a Dec. 5 community engagement meeting, and the new proposal proved popular with Lakeville residents in attendance. 

But the rejection of an original plan to build warehouses at the site may have cost Lakeville new tax revenue that would have been useful in alleviating a predicted budget crunch, said Lakeville’s outgoing town administrator.

“We had approximately 75 residents stop by our Community Engagement Meeting,” said John O’Leary, a Rhino Capital project manager. “Overall the feedback was positive and we are encouraged with the community’s response. We will be doing our best to incorporate the feedback we heard into the next iteration of our master plan”

The current version of the plans, which are described on the Rhino Capital’s website, 43mainst.com, call for the creation of community amenities, such as trails and recreation areas. 200 units of multifamily housing would be built at the site. The plans also include several types of senior housing. 70 age-restricted cottages would be built, as well as 120 units of assisted living and memory care housing and 70 units of “independent living” housing.

O’Leary said that Rhino Capital hopes to incorporate feedback from residents into their next iteration of their plan for the site.

John Jenkins, who was an opponent of the warehouse proposal and is a member of Lakeville Residents For Responsible Growth, spoke positively about the new plans.

“I think it’s exactly what the town residents have been looking for for that site,” Jenkins said. The new plan is “something that doesn’t overload the town with trucks and tractors,” he explained.

But as the new plan to build housing continues to develop, a budget forecast for Lakeville suggests that the town will need more tax revenue to keep up with increased town expenses in the fiscal year 2025.

A zoning change that would have facilitated the construction of warehouses on the site was soundly rejected by voters at a town meeting last year. At that town meeting, many residents voiced their opposition to the idea of constructing warehouses at the hospital site.

But if the warehouse plans had gone forward, it is possible that it would have alleviated some of the challenges facing the town as it looks to create a budget for the 2025 fiscal year, outgoing Lakeville Town Administrator Ari Sky said at a Dec. 4 Select Board meeting.

According to a budget outlook presentation given by Sky, Lakeville faces decreased “new growth” which will make it difficult to increase the amount of revenue the town raises from taxes. 

At the same time, Sky’s presentation also predicted increased costs for the next fiscal year, including rising insurance costs and increased salaries. 

“If [the warehouse plans had gone forward], it would probably be under construction at this point, and we would have seen building permit revenue by now, and we would probably have been able to project a much more decent new growth number for next year,” Sky explained.

Jenkins said that the town needed to keep in mind factors other than revenue when making decisions about what types of buildings should be allowed.

“What about the character of the town? What about what the townspeople wanted?” Jenkins said. “It’s an unfortunate opinion to say we base all of our decisions on income.”