The Town of Milo, the Village of Penn Yan, and the Finger Lakes Economic Development Center (FLEDC) have reached a settlement agreement that would resolve an annexation dispute involving a 72-acre property and end two lawsuits and an eminent domain proceeding.
The agreement was approved during special meetings held this past Monday by both the Milo Town Board and the Penn Yan Village Board. The village resolution passed unanimously, with Mayor Patricia Christensen abstaining and Trustee Kevin McLoud absent. The Milo Town Board also approved the measure unanimously, with Councilman Dale Hallings absent.
Under the agreement, the approximately 72-acre property at 2442 Old Route 14A, formerly known as the McFetridge Farm, will be divided along a north-south line. Roughly 36 acres on the western portion of the property will be annexed into the Village of Penn Yan, while approximately 36 acres on the eastern side will remain in the Town of Milo.
The FLEDC will retain ownership of the entire property. The agreement allows the organization to continue renting the town parcel for agricultural purposes or to sell the land in the future.
Development restrictions have been placed on the portion annexed into the village. The agreement limits development on that parcel to a maximum of 180 residential dwelling units. It also permits certain non-retail commercial uses, including professional offices, financial institutions, museums, personal service businesses, storage facilities, agricultural businesses, and some light industrial operations. Retail businesses such as grocery stores, restaurants, taverns, and department stores are prohibited under the agreement.
The settlement also requires the FLEDC to dedicate $300,000 from its existing loan funds to a separate account reserved for agricultural-related projects within the Town of Milo.
In addition, the Village of Penn Yan agreed to a 10-year moratorium on supporting future municipal annexation petitions within the Town of Milo without prior approval from the town, with the exception of village-owned property adjacent to the wastewater treatment plant.
The annexation dispute began in 2024 after the FLEDC sought to annex the property into the village. The agency originally envisioned the site as an industrial park but later shifted its focus toward a mixed-use development that could address local housing needs.
The Village of Penn Yan approved the annexation proposal in January 2025, while the Town of Milo rejected it, leading to litigation between the parties and the town’s pursuit of eminent domain.
According to the resolutions adopted by both municipalities, the settlement was reached to avoid the cost and uncertainty of a trial that was scheduled to begin in the coming weeks and to promote a more cooperative relationship among the parties moving forward.
