Yorktown sues developer over alleged property violations and unmet obligations

The Town of Yorktown has filed a lawsuit against a developer over alleged unpermitted construction, illegal vehicle storage and failure to meet long-standing development obligations.

The lawsuit centers on an 8.9-acre municipal parcel on Fieldstone Manor Drive in Mohegan Lake that has drawn concern from residents and town officials over the past year regarding its use as a storage area for vehicles and equipment. Former Journal News Tax Watch columnist David McKay Wilson previously reported in his Hudson Valley Digger Substack that the town had owned the property since 2019 but that developer William Catucci was using the land to store trucks, cars, trailers and other vehicles.

The complaint, filed July 31 in New York Supreme Court, names Catucci and his entities, WEJ Realty Corp. and Lake Mohegan Mansion LLC. The town alleges the defendants failed to fulfill development obligations tied to the Fieldstone Manor residential subdivision, including construction of required recreational facilities and the designation of two affordable housing units, according to a prepared statement issued by the town’s public relations firm on Tuesday.

“For years, the town has worked productively with developers to ensure that community benefits, including public recreation space and affordable housing, are fully realized,” said Supervisor Ed Lachterman in the statement. “However, when commercial operations unlawfully intrude on public land, we must take decisive legal action to protect our taxpayers, safeguard municipal assets, and enforce local law.”

The land was deeded to Yorktown as part of the Fieldstone Manor residential subdivision project approved in August 2016. Under the original approval terms, the developer was required to construct public recreational facilities, including tennis and basketball courts, and provide two affordable housing units.

As Yorktown News previously reported, a deed transferring the property to the town was filed in 2019, a year after the death of former Town Supervisor Albert Capellini, who had served as Catucci’s attorney. While the deed had been signed, it reportedly was not intended to be filed with the county at that time but was ready to be recorded once the developer fulfilled the requirement to convert the land into recreational space.

But the recreational facilities were never built.

Yorktown Code Enforcement issued a Notice of Violation on June 10 after observing unpermitted basketball court construction and the unauthorized parking of heavy equipment and vehicles on town property, according to the statement. The town also alleges that the defendants rented space on the property to third parties for equipment storage.

The lawsuit seeks a court order to stop the alleged violations, remove vehicles and equipment from the property, recover rental income the town alleges was collected from the municipal parcel, impose civil fines and require compliance with the affordable housing requirements.