Debate Intensifies Over Zoning and Development of Former Holly Drive Motel Property in Fulton

FULTON – In a recent public meeting, local resident Dennis Merlino voiced concerns about the condition and zoning of the Holly Drive Motel, located near his home on South 10th Street. He emphasized the community’s desire for improvement, recalling a successful neighborhood effort in 2013 that rezoned the motel from commercial to R1 single-family residential. Merlino argued that reverting the motel to commercial zoning would undermine community control, allowing for easier changes to surrounding properties without public input.

He highlighted ongoing issues with the current owner’s adherence to property regulations, questioning whether they were up to date on taxes and fines related to the building’s deteriorating condition, as indicated by a red “X” signage. Merlino also raised concerns about a dumpster that has been on the property for an extended period, questioning whether similar cases have faced enforcement actions and why the current owner might be receiving what he termed “special treatment.”

Additionally, Merlino pointed out potential flaws in the public hearing process regarding zoning changes, noting that many residents did not receive proper notification. He urged the council to consider a zone variance instead of a zone change, which would maintain some control for the neighborhood while allowing the current owner to improve the property.

In the article Mr. Merlino mentioned, Fulton Zoning Fight Ends in Victory for Neighbors of Rundown Closed Motel:

In 2012, the Fulton Common Council confirmed that the closed Holly Drive Motel was zoned as single-family residential (R-1), at that time, denying owner Vinod Mariwalla’s attempt to sell the property for conversion into a 12-unit senior housing complex. Mariwalla, who purchased the motel in 2011 for $48,000 and invested over $70,000 in it, believed it was zoned R-3, which allows for multi-unit residences, based on prior representations.

Mayor Woodward had said, “There’s nothing in the records that says R-3,” adding, “We can find no proof it was ever rezoned.” City officials found no records indicating a change in zoning. In 2012, Local residents opposed the change, citing concerns over crime associated with the motel. At that time, the council voted unanimously to deny the zoning request.

During the August 5th, 2025, City Council Meeting, Mr. Sherman expressed his views on the property he acquired. He believes a zone variance, as proposed by Mr. Merlino, could hinder the property’s development potential. Although he considers selling the property if approached by a buyer with deeper pockets, he denies any rumors about Dollar General being interested in it. Sherman highlighted the high costs associated with tearing down a building, particularly regarding asbestos surveys and removal, which have deterred his plans.

He emphasized his need for commercial property rather than R1 zoning, arguing that it complicates business operations. He suggested that easing zoning regulations would attract businesses to Fulton rather than creating barriers. Sherman is in favor of changing the zoning to C2, stating he has received a substantial offer from New Jersey-based buyers interested in the property. He noted that single-family home developers would find investing in R1 zoning unfeasible due to costs. Overall, Sherman advocates for a business-friendly approach to zoning that would benefit the community economically.

In a recent statement to Oswego County Today, Mr. Sherman, a local property owner, said he won a bid for the property while on vacation in July 2023, but the delay in possession until December dampened his enthusiasm. He mentioned having verbal offers from two potential buyers, noting differing visions for development—one deemed unexciting and a second with the potential to address a significant city need.

Mr. Sherman emphasized that both proposals align with the city’s C2 zoning regulations, countering claims made about the need for a variance on a nearby Byrne Dairy property, which also falls under C2 zoning without variance restrictions. Highlighting the city’s commercial corridor along Route 3, he criticized Frank Castiglia and Dennis Merlino for their opposition to new businesses, claiming their attitudes deter development.

The Next Public Hearing for this issue will be in September.

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