[3] Developer Mall Properties, Inc. of New York began paying the town $2,500 a month in September, 1975 to maintain an option on the land.
[10] The city of North Haven cited the necessity of progress,[11] estimated $2.5 million in possible tax revenue, and the creation of up to 3,000 permanent new jobs.
[6] This prompted First Selectman Walter Gawrych to order a full reassessment of relations with New Haven, based on "unparalleled interference on the part of a large city with the affairs of a small town".
[7] Opponents also cited the effects of urbanization,[11] air pollution generated by increased traffic, merchants subjected to high rents, and a local inundation of fast food restaurants.
[2] The United States Department of Housing and Urban Development (HUD) conducted an independent study in 1980 at the requests of DiLieto and the Army, predicting that the mall would result in "substantial losses of trade, tenants, and future investment potential" in regional towns.
[12] Although initially granting a favorable report, the Corps denied a permit to the town, "concluding the project was contrary to the public interest".
The United States Court of Appeals for the First Circuit dismissed the case, explaining that Mall Properties' process had only moved to another forum and had not yet been realized.
[18] Although a mall was never built in North Haven, the nearby Universal Drive later turned into "retail focal point" for the area.