The Damariscotta Planning Board approve Stepping Stones, Inc.’s low-income housing project on Hodgdon Street Monday night.

The proposal had long been under fire by neighbors objecting to the number of possible occupants. With five two-bedroom cottages and an existing house of one bedroom, as many as 22 might live there, but today, most of the properties are occupied by one person or a couple.

On Monday, one vocal critic, Gabe Shadis, threatened an appeal, and litigation all the way to the Maine Supreme Court, potentially tying up the project for years and costing Stepping Stones a great deal of money.

“I think you'll run out of money before we do,” Shadis said.

Shadis believes the issue of a grandfather clause that Stepping Stones used would not stand up to additional legal scrutiny. There were seven units on site when the organization was given the land following the death of John Andrews, who had run a private home for people who had fallen on hard times, under the name “Blue Haven.”

Town Planner Anthony Dater said the town's attorney had twice looked at the issue, and concurred that that Stepping  Stones could grandfather and replace the units, as planned.

Stepping Stones tried to work with neighbors by scaling back the project to six houses, which would be single-story single-family homes, rather than the duplexes first conceived.

The neighbors also objected to a lack of supervision on site. In response, Marilee Harris, pastor at Damariscotta Baptist Church, was named executive director and placed in charge of the project, as well as developing a screening process for potential tenants. Stepping Stones maintains an office in downtown Damariscotta, but Harris is available for the tenants at all times.

Harris brought in an engineered 3-D model of the site, based on the cottages planned and the existing vegetation.

The screening process the neighbors had demanded had the effect of ending the tenancy of a longtime residents, who said she could not support Stepping Stones’ mission.

The board was initially concerned about the vegetation and lack of fences at the site, but town ordinances do not require residence to residence fencing or screening, although Dater said it could be made a condition of approval.

Planning Board member Stephen Cole said he hoped that as the process went forward, neighbors would be less acrimonious. “I don't think it would be good to require a fortress-like setting,” he said. “These people will be your neighbors.”

Chair Jonathan Eaton agreed, but said he didn't think a four-foot high picket fence was out of line. “That wouldn't provide screening, though,” he said, which had been the request of one of the abutters.

There had been concern that the project would prevent people from buying property in the area, or would cause property values to fall. But one of the abutting properties was placed under contract in the first week in March. Harris said the couple was delighted with becoming neighbors with Stepping Stones.

The site plan was approved, 3-1, with Eaton abstaining and Shari Sage opposed.

The planning board also had a second review with the engineer of a project for a Dollar General and a Sherman Williams at the former Poole property at Biscay Road and Main Street. Selectmen had sent a letter asking that the site plan do away with the Main Street curb cut because it was felt that the traffic trying to turn left into or out of the property that close to the stoplight at Biscay and Church would stymie traffic, especially in the summer. They also asked that the site be responsible for sidewalks around the property as a condition of approval.

The engineer tried to explain the purpose of the cut being in the middle of the property, and said that he is in discussion with Maine Department of Transportation to approve the curb cut. There are still six outstanding waiver requests, not counting the sidewalk and curb cut issue, and one of them, lighting, may prove to be a problem because the site's plan for lighting far exceeds the town ordinance.

The planning board agreed to review the application for completeness in April, but also agreed to write to MDOT and express its concerns about the sidewalk issue and the curb cut on Main Street.

Two other issues involved the change of use of the former Skidompha Library used book store to accommodate a mostly take-out, lobster roll restaurant with a few indoor tables, and a request by NC Hunt on Route One to store its supplies in the open in a new part of its property. Both were given instructions about how to comply with the town's ordinances, and asked to return in April.

The next meeting is April 3 at 7 p.m.