The developers of a proposed hotel site in Waverly have submitted revised plans to instead build a retail space at the site.

Representatives of project developer SAI Capital Group and engineering firm Clough Harbour and Associates presented plans for a proposed 12,000-square-foot, six-tenant retail strip and 4,050-square-foot drive-thru restaurant Tuesday to members of the village planning board. The development would be located on eight commercial-zoned parcels surrounded by Broad, Chemung and Pine streets.

Developers had initially planned to build an 85-room, three-story Holiday Inn Express hotel and separate chain restaurant at the site, but plans were scaled back to resolve an issue regarding a strip of land owned by the state Department of Transportation along U.S. Route 220 that had been part of the original development, said Amy Franco of CHA. Officials have concerns about a drainage system and municipal utilities at the site, she said.

An agreement with the state would allow developers to obtain a use and occupancy permit for the parcel to build additional parking, a crucial piece that would allow for enough parking space to meet the requirements set in the village code, Franco said. That process can take between three and six months, said developer Curtis Patel.

In order to build a structure on the state-owned property, developers would have to apply to purchase the property. The process has a roughly two-year turnaround, Franco said, requiring plans for the site to be downsized to avoid further delays. Patel may consider building a hotel at another site within the village, Franco said.

No tenants for the spaces have been secured yet, but the site has generated interest from financial institutions, restaurants and retailers, and Patel said he is seeking both local and national businesses to fill the spaces.

Tom Mullen of United Country Tom Mullen and Associates, which has worked to obtain tenants for the development, said the proposed retail space's close proximity to routes 220 and 17 will attract "a lot of attention from national retailers that want to be in a new location in a high-visibility area."

The drive-thru restaurant in particular "has generated very, very considerable attention," Mullen said.

The project will next undergo a review under the state Environmental Quality Review Act, a process planning board members said could be completed as soon as its March 5 meeting. The plans must also be reviewed by the Tioga County, N.Y. planning board, which next meets Feb. 20.

Amanda Renko can be reached at (570) 888-9652; or email: arenko@thedailyreview.com.