A plan to nearly halve the size of a controversial housing project is now on its way to completion.

Town Meeting approved $300,000 in funding for the acquisition of 12 acres of land, which could result in Baywatch Realty Trust reducing the size of its proposed affordable housing project on land abutting Route 105, just north of Route 6.

Under the agreement, the 168-unit development would be reduced to a four-building, 96-unit project. The acreage purchased by the lands trust would be left as open space, protecting wetlands and allowing a bike path easement. The new plans would also eliminate the need to widen Route 105 to accommodate traffic.

The agreement, made possible with the Sippican Lands Trust and abutters to the land, comes after 10 years of negotiation and litigation over Baywatch’s housing development. Using the state law designed to encourage construction of “affordable housing,” commonly referred to as “40B,” Baywatch can avoid the need to comply with a variety of local zoning regulations – most relevantly, restrictions on the density of development.

Although funding was unanimously approved at Town Meeting, the plan still has to go through review from the Conservation Commission, the Zoning Board of Appeals and the Board of Selectman. Should an objections arise at these levels, the plan will be nullified, and the development will remain at 168 units.

Christ Bryant, President of the Sippican Lands Trust, said the 12 acres would have a conservation restriction placed. This restriction prohibits any development such as baseball fields, but can be used for footpaths or other recreational activities.

“It has taken a long time to get here,” Bryant said. “But this is the starting point. If this doesn’t go through with the Conservation Commission or Zoning Board or Selectmen, it’s back to the fighting.”

Town Meeting also approved the $40,000 window replacement project at Handy’s Tavern and authorization for the Selectmen to approve a 1.8-acre land donation to the town. The Town House’s $141,000 request for hiring an owner’s project manager for renovation plans was not approved.

Town Administrator Paul Dawson said an “existing conditions survey” was conducted earlier this year to determine the current state of the Town House, which he said is in need of renovations or rebuilding.

Dawson explained Tuesday that project details cannot be determined until the project manager, who will oversee the project from start to finish, is hired. State law requires a project manager be hired for projects over $1.5 million.

“The purpose of the project manager is to advise the town on how to prepare and figure out what needs to be done and to participate in the hiring process," Dawson said. “You can’t do anything until you have the manager. I can’t get preliminary designs or conduct a feasibility study until we have this manager.”

Dawson said a project manager was not required for the construction of the new police station, as the 2004 law requiring a manager had not yet gone into effect.

The decision to deny the funding was a result of capital projects, such as the building of a senior center or expansion to the library, came into question.

Sippican Woman’s Club member Susan Granger said many of the windows at the historic do not operate or open. She added that several panes have cracks and the storm windows have pieces missing. Andersen Windows has already started rebuilding the 35 windows. Granger said the club had already taken out a loan to move forward with the project in the event it wasn’t approved at Town Meeting. Once the windows are built, Granger said Andersen estimated the installation of the windows would take three days.

Thirdly, the Selectmen were authorized to execute a contract for the donation of land and buildings at 13 Atlantis Drive. The donation contract from YSI Inc., which owns the property, states the town would be responsible for conducting studies regarding the surface and subsurface conditions and other insurance or legal fees. Selectman Roger Blanchette said the two-story building on the property was in excellent condition and could be used as storage facilities for town departments. Surveys of the structure have already been done as well, according to Blanchette.

The Selectmen also have the authority to deny the donation.