A New York State Supreme Court judge has upheld the Town of Wawayanda Zoning Board of Appeals’ decision to deny a height variance for a proposed Amazon warehouse project, rejecting an attempt by the developer to overturn the ruling and reinforcing the board’s authority to enforce local zoning law.

In a decision filed Dec. 2, the court ruled that the Town of Wawayanda Zoning Board of Appeals acted lawfully when it denied Scannell Properties’ request to exceed the town’s 65-foot height limit. The judge found the board properly weighed the benefit to the developer against impacts to the town’s health, safety and welfare, including traffic, community character and the scale of the proposed building.

The proposal — often referred to as “Project Bluebird” — calls for a five-story warehouse rising more than 105 feet. The ZBA denied the height variance in June 2025. Scannell Properties later obtained approval by the town planning board and challenged that ZBA's denial in court, arguing the ZBA acted improperly and that the project should be allowed to move forward.

The court disagreed, siding with the ZBA and finding its decision was supported by the record. The judge also noted that Scannell already held approvals for a significantly smaller warehouse and that the need for a height variance was self-created when the developer pursued a substantially different proposal.

Environmental advocacy groups Protect Orange County and Save Wawayanda welcomed the ruling, calling it a reaffirmation of local zoning authority. In a joint statement, Protect Orange County said the decision “sends a clear message that local laws matter” – adding that zoning boards exist to protect community character and that courts will uphold those decisions when boards act within their authority.

Environmental advocates have also raised concerns about the Town of Wawayanda Planning Board’s environmental review of the project. They argue the Planning Board’s SEQRA determination — issued under the State Environmental Quality Review Act, which is used to evaluate potential environmental impacts — was based on an earlier, smaller version of the project rather than the updated design that sought a significantly taller building. Opponents contend that relying on the original review failed to fully account for changes in scale and potential impacts tied to the revised proposal.

The ruling comes amid what appears to be growing pushback against the project. That includes a recent decision by a state-appointed monitor to veto Orange County Industrial Development Agency plans to grant the project more than $80 million in tax breaks, citing concerns about financial risk and public benefit.

Scannell Properties has filed a notice of appeal of the court’s decision. Meanwhile, two separate lawsuits filed by community activists and residents remain pending, including one challenging the action taken by the Town of Wawayanda Planning Board for previously approving the project after issuing a SEQRA negative declaration.

Separately, the proposed warehouse is also the subject of a state Department of State fire code variance, which is not part of the court ruling but has drawn scrutiny over safety concerns tied to the building’s size and design.

News 12 reached out to members of both the Zoning Board of Appeals and the Planning Board, as well as the town supervisor and Amazon, for comment on the ruling and the future of the project.

The town indicated it would have no comment due to pending litigation.