Controversial “Yard South” Project Seeks Contract Zone to Develop “Mixed-Use Neighborhood” Near Bug Light

The controversial Yard South project in South Portland submitted its application to the city for a contract zone Wednesday. If approved, this would allow for the development of a “mixed-use neighborhood” with buildings as tall as thirteen stories.

In South Portland, Contract Zoning allows the City Council to “impose, by agreement with the property owner or otherwise, certain conditions or restrictions not generally applicable to other properties similarly zoned” as a result of “the unusual nature or unique location of the development proposed.”

Yard South developers have been working on project plans for six years and submitted their pre-application to the City in 2022.

PK Realty Management purchased the land for $7.7 million in 2018.

The Yard South development is slated for a 30-acre parcel of land near Bug Light Park that formerly served as the West Shipyard where Liberty Ships were built during World War II.

“Yard South, a 30-acre mixed-use neighborhood, invites everyone to live, work, and play in South Portland’s Eastern Waterfront,” boasts the development’s homepage in explaining the vision for the project.

City staff will now have thirty days to review the contract zone application and submit comments to the Planning Division.

Staff for the Planning Division will then compile these comments and share a Completeness Letter both with Yard South developers and the public. This letter will highlight any “necessary or recommended amendments to the application.”

According to a press release shared by Yard South developers Wednesday, a public hearing on the proposed contract zone is not expected to take place until at least mid-October.

On the Frequently Asked Questions section of the Yard South website, the goal of the project is to create “a mixed-use neighborhood where residents can live and work.”

The project would include “retail, commercial, industrial, community services,” access to the waterfront, and an estimated 1,000 residential units.

Developers go on to suggest that the “housing crisis further underscores that need for this zone change,” as it currently not permitted for the area to be used for residential purposes.

The project also emphasizes its commitment to environmentalism, explaining on the Yard South homepage that the neighborhood’s design is intended to provide “convenient alternatives to driving.”

This section goes on to explain that the developers have also “anticipate[d] climate change” through their “planning and site improvements.”

Of the projected 1,000 residential units to be constructed on the property, one hundred will be reserved for affordable housing in partnership with the South Portland Housing Authority.

According to the project website, Yard South also aims to reduce housing costs on the property more broadly by increasing density, reducing parking, and developing alternative options for transportation.

One organization that has strongly spoken out against the proposed Yard South development is Protect South Portland, a group dedicated to “promot[ing] actions and practices that serve to protect the environment and the health and welfare of” the City.

Their opposition stems primarily from potential safety concerns resulting from the fumes emitted by the nearby oil tanks and the potentiality of storm surges “releasing toxins or dislodging the tanks.”

According to Protect South Portland, recent monitoring from the Department of Environmental Protection (DEP) has shown that levels of “Benzene, a strong carcinogen” has exceeded the maximum amount deemed safe by Maine’s Ambient Air Guidelines.

The group also argued that given the hazardous nature of the oil tanks, an emergency evacuation plan must be developed before a residential development such as Yard South is constructed in this location.

Another group which formed specifically for the purpose of opposing the development, No Yard South, has distributed numerous lawn signs that have appeared in front of homes throughout the City urging local lawmakers to put a stop to the project.

In an interview with the Portland Press Herald last year, the organizer of No Yard South stated that while she believes in increasing housing availability, she is against doing so in this location.

“I don’t think they should build residential there at all,” Cathy Chapman, organizer of No Yard South, told the outlet. “I’m pro-green and pro-density, but not there.”

[RELATED: Everything You Need to Know About Yard South]

In early June of 2023, Yard South developers responded to some of the criticism they had received in a press release, addressing a range of concerns including air pollution, flooding, and a potential uptick in traffic to the area.

Concerning the objections raised surrounding the air quality of the location, Yard South developers cite a 2022 Health Assessment that found, for the chemicals tested, that “none of the individual 24-hour sample results exceeded acute toxicity values.”

The press release made no mention of Benzene specifically.

Regarding flooding, the developers state that “most of the Yard South property is located outside a FEMA Special Flood Hazard Area.”

To ease concerns over potential traffic increases, Yard South developers argue that “this is the walkable, transit-oriented neighborhood and lifestyle that we want to create…Incremental development will allow us to ease traffic and other impacts gradually over time.” They also reiterate their commitment to increasing access to and use of public transit.

Click Here for More Information on Yard South’s Contract Zone Application

It is estimated that the entire Yard South project, if approved by the City, will be constructed over the course of fifteen to twenty years.