Groton — The developer under contract to buy the former William Seely School property has terminated its agreement with the town.

Kincora Development LLC, known locally for commercial developments like the Waterford Commons shopping center, ended its purchase and sales agreement with Groton as of March 2, according to a Feb. 23 letter from the developer.

The Waltham, Mass.-based developer had been considering a multifamily housing development for young professionals and possibly a hotel for the 15-acre school site. William H. McCabe III, the managing member with Kincora who wrote the letter, could not be immediately reached for comment. His letter did not explain the reasons for ending the agreement.

But Town Councilor Bonnie Nault said the developer was unable to proceed with a commercial development without access to Route 12. Kincora specializes in commercial development, so when it became apparent that wouldn't work, Kincora brought in a developer who specialized in housing, Nault said. The housing developer wanted to build Section 8 housing at the site, and the town council wanted mixed-use development instead, Nault said.

Gretchen Chipperini owns the roughly 5-acre property adjacent to the school property that would have allowed access to Route 12. She was in negotiations with the developer last year about selling her property. She could not immediately be reached.

Neighbors opposed commercial development of the school unless access to the property was from Route 12.

Planning Director Jonathan Reiner said Monday the site still has redevelopment potential.

"We've seen a lot of interest in the municipally-owned property,” he said.

But given the lack of access to Route 12, the property may lend itself more to a residential, multifamily development, he said.

The town council will discuss the property on March 28.