MIDDLEBORO — Middleboro has settled its lawsuit with the state and agreed to support creating an area on East Clark Street for market-rate and affordable housing in lieu of following state-mandated MBTA Communities Act requirements. 

"This is a huge win for Middleboro," Town Manager Jay McGrail said. The agreement allows the town to maintain local control over its zoning plans, McGrail said.

Under the terms of the agreement reached Wednesday March 26, Middleboro will seek Town Meeting approval to expand its current Chapter 40R Smart Growth Zoning Overlay District to create a new subdistrict in the East Clark Street area. The 40R district calls for multi-family housing, with 25 percent of units to be affordable. 

This would allow additional land for market-rate and affordable housing development near the MBTA commuter rail station. 

Voters will decide whether to approve this new sub-district at the October Special Town Meeting, McGrail said. 

If voters approve the expanded district, properties in the new sub-district will be subject to the same requirements as those in the other 40R sub-districts, including the requirement for site-plan review. Through site plan review, the town would examine plans to ensure they meet local zoning regulations. 

The agreement supports the arguments by town officials that the 40R district meets the requirements of the MBTA Communities Act. This act requires MBTA communities, including Middleboro, to allow multi-family housing by right within a half mile of the train station.

The station, located on East Grove Street, opened Monday, March 24 and serves as a stop on the service extension to New Bedford and Fall River, known as SouthCoast Rail.

The expanded 40R district would be accepted by the state in lieu of a new MBTA Communities Zoning District, according to terms of the settlement. The MBTA district, the lawsuit had claimed, could have cost the town nearly $200 million and added 1,471 housing units. 

The Executive Office of Housing and Livable Communities has also agreed that Middleboro is in interim compliance with the act to allow the town time to finalize this plan.

With this agreement, the town has withdrawn its lawsuit. But the town can bring it back if Town Meeting voters do not approve the zoning map amendment and a new agreement cannot be made.

 This resolution will also ensure that the town can still be eligible for state grant funds. The state withdrew an education grant in February of $73,705 for mental health services, citing the town’s non-compliance with the MBTA Communities Act. That decision was met with anger from town and school officials.

Next week, McGrail said, the town will apply for a $2 million Municipal Vulnerability Preparedness grant to construct a new parking lot behind Center Street in the downtown. They will now be eligible for the grant. McGrail said  is hopeful the town will receive the grant because Middleboro was awarded funds last year for the design of the same parking lot. 

With the litigation aside, town officials say they can “focus on the important work of developing the zoning for the proposed sub-district.’’ Planning Board public hearings and other opportunities will be scheduled for residents to learn about and provide input into the plan. 

 When Town Meeting voted last fall not to accept the creation of a new MBTA Communities zoning bylaw and district, town officials “listened to voters’ concerns and set about to reach a resolution that would allow the town to retain control over its zoning decisions and to create opportunities for affordable multi-family housing in ways that will meet the needs of the town’s economically diverse population,’’ according to information provided by the town.

 "I want to thank the voters of Town Meeting for understanding the importance of maintaining local control and having faith in the Select Board, the Town Manager, and Director of Planning to find a solution to this matter," Select Board Chair Mark Germain said. “We are pleased to find a compromise that works for the Town of Middleboro."

 McGrail was pleased with the resolution. "We were able to work together to provide the state with the additional multi-family housing units it sought while preserving our town's ability to shape our own growth and development. I would like to thank our Director of Planning & Community Development Leeann Bradley and Town Counsel Gregg Corbo for helping us come to a creative solution that allowed us to resolve this dispute. ‘’

He also thanked Lt. Governor Kim Driscoll, state Senator Kelly Dooner, and state Representatives Norman Orrall and Kathleen LaNatra. “We wouldn't have been able to resolve this matter without their assistance and guidance,’’ McGrail said. 

As a result of the settlement, Middleboro is no longer involved in a multi-town lawsuit stating that the MBTA Communities Act constitutes an unfunded mandate.