Waterford — Mark Steiner, the developer formerly contracted with the state to develop the state-owned property known as Seaside, is preparing to file a lawsuit against the state after efforts to resolve the contract termination out of court were unsuccessful, according to his lawyer.

Attorney Lewis Wise told Judge Emmet Cosgrove of his client’s plans Thursday during a status hearing at New London Superior Court for Steiner’s appeal of the Waterford Planning and Zoning Commission’s rejection of the developer’s proposal to amend the zoning regulations of the property located off Shore Road in Waterford. Steiner had proposed changing the zoning to allow for commercial development, including an inn. Steiner had said he wanted to build a five-star resort.

Cosgrove agreed to continue the hearing to Sept. 15. He asked Wise how long he anticipated it would take for Steiner to file a lawsuit against the state, and Wise said within the next couple of months.

“In the meantime, obviously, the litigation will hopefully be filed,” Cosgrove said.

The state attorney general's office has not received any communication from Steiner or his attorney since October, Director of Communications Jaclyn M. Falkowski said Wednesday. The last communication was a letter from Wise to the Department of Administrative Services responding to the state's termination of the contract, in which Wise asserted that his client had not defaulted on his obligations as outlined in the contract and said his client intended "to institute an appropriate action" for the termination of the contract.

Gov. Dannel P. Malloy announced in September that the state had terminated its contract to sell Seaside to Steiner and would instead make the parcel a state park. Days before Malloy's announcement, Steiner had appealed the Planning and Zoning Commission decision.

The appeal has been in limbo since Steiner filed it. The termination of the contract means he does not currently have standing to appeal the commission’s rejection of his proposal. He would need to re-establish his standing, such as through a successful lawsuit against the state, to appeal the decision.

Seaside, the site of the former Seaside Center for the Developmentally Disabled, returned to the spotlight this week with a Hartford Courant article about the frustration among advocates for the developmentally disabled that there would be no sale of the property.

The Arc Connecticut Executive Director Leslie Simoes explained Thursday that proceeds of the planned $8 million sale of the property were supposed to go to the Department of Developmental Services, which now faces drastic budget cuts under consideration by the state legislature. She said the allocation of the proceeds should Seaside be sold was required by a state statute Arc had helped to pass.

She said Steiner had not promised anything to Arc as an organization, but had made commitments to honoring Seaside’s history as an institution for the developmentally disabled and keeping that history as part of the property’s identity after its development.

She said Steiner had said his planned development at Seaside would include a unit that would be dedicated as a living space for someone with a disability, in perpetuity. She said Steiner had not gotten as far as outlining details such as whether the dwelling would be offered at reduced cost.

t.townsend@theday.com

Twitter: @ConnecticuTess