The future development of the Saugatuck section of Westport is up in the air after the town's Planning and Zoning Commission voted to reject "The Hamlet," a five-acre development that would have brought apartments, hotels, restaurants and shops to the waterfront area near the train station.

"I just think the scale of what was proposed really exceeds the capacity of what exists here," said Bill Rizzuto, who owns Rizzuto's Oyster Bar in the area.

The vote from the Commission was 4-0 to reject, with three members abstaining.

"I am surprised the town was that short-sighted," said Bob Glaser, the owner of both Steam Coffee and Saugatuck Mail. "It would have been an absolute gem for Westport."

Developers had said that if The Hamlet was rejected, they would build a 500-plus unit apartment complex on the site, with a big chunk being affordable housing.

That plan would not need Planning and Zoning Commission approval.

"The fallout from that is going to be pressure on the school system, taxes are going to go up," worried Glaser.

"It felt like a threat," added Lisa Wittbrodt, who lives nearby.

The issue is likely to keep coming up around November's Selectmen elections, especially with Westport's current First Selectwoman Jen Tooker running for governor, and not seeking re-election.

"There's going to be new officials in town, and that might just be exactly what's needed," said Don O'Day, the Republican nominee to replace Tooker.

Meanwhile the Democratic nominee for second selectman, Amy Wistreich, was one of the members of the Planning and Zoning Commission who voted to reject the proposal, citing concerns over traffic, parking and safety.

In a statement, the Democratic nominee for first selectman, Kevin Christie said the area "presents a real opportunity for Westport, with mixed use development" - and that he and Wistreich would "support smart development that reflects Westport’s values, as we have been discussing this with Westporters for months. That means planning with fiscal discipline, addressing traffic and safety head-on, and working closely with the Westport community, state leaders, and developers to get it right."

"If they could figure out the parking situation and maybe scale back the magnitude of the project a little bit, it would be a great thing," added Rizzuto.

O'Day says he also wants developers to come back with a new proposal - noting that they had presented a few ideas to improve traffic - and that maybe the town could be proactive them.

"There's no reason why the town can't start looking at those ideas - some of them are really interesting, and see if they work," O'Day said - adding that if they did indeed work, it would go a long way towards easing some of the concerns with development.

O'Day says he believes the difference in the candidates is that he has the experience to get something done here, while Christie says he will be sharing more in the next few weeks