The South Portland Housing Authority is proposing a 96-unit development at the location of the Southern Maine Indoor Flea Market at 578 Route 1 in Scarborough.

The development would feature four buildings, the largest of which would be at the front of the site and consist of 60 affordable units for people ages 55 and older. Another 36 units of workforce housing would be spread among three buildings toward the middle of the site, while the back half of the property would feature a trail loop, recreation area and playground.

The 36 workforce units would consist of 15 one-bedroom, 15 two-bedroom and six three-bedroom units, while the senior building would be all one-bedroom units.

The Housing Authority is seeking a contract zone for the project as the property is currently part of three different zones.

“The three zones, as a whole, is a really big hurdle to overcome for any development,” said Ben Mohney, a development officer at the Housing Authority, at a workshop with the Housing Authority, Town Council and Planning Board last week.

Town zoning ordinances permit the number of units the Housing Authority is proposing. However, Mohney said current caps on building footprint and height make the 96-unit proposal impossible unless they were to encroach on wetlands at the back of the 7.9-acre property.

“We do have a good bit of acreage back there but it’s just not a good use of the space,” Mohney said. “We’d be having to fill in wetlands and things like that and that’s the complete opposite of what we want to do … Creating these denser buildings, putting them up at the front of the site, lets us save as much of the back of the site as possible.”

The development would include 114 parking spaces.

One major concern shared by Scarborough town councilors and Planning Board members at the workshop was the entrance and exit from the property. A median and nearby intersection means the property is only accessible to Route 1 northbound travelers, and those exiting the property must turn right onto Route 1 northbound.

The Housing Authority said it would ideally add an entry and exit off of Dolloff Way, which borders the property and would accommodate left and right turns onto Route 1, but it is not a public road. They are proposing a gated entrance to Dolloff Way for emergency access only.

“The concerns we’ve heard on access to Route 1; that’s my concern as well,” said Planning Board Chair Rachel Hendrickson. “That’s going to be something that the Planning Board will take a look at.”

Hendrickson said the Planning Board is also in charge of analyzing land use.

“It seems to me that this becomes a very ideal use in terms of the siting of this property,” Hendrickson said. “It’s on a bus route, there are sidewalks, there are a lot of small businesses there including a grocery store. For those people there who have one car … it’s essentially walkable.”

The Town Council voted 5-1 to direct the Housing Authority to continue working with the town toward a contract zone, with Councilor Scott Doherty opposed and Councilor Corey Fellows absent.

“I would love to see something like this,” Councilor Jon Anderson said. “I think we do have a need for affordable housing and workforce housing, so, whatever we can do to continue the process and partner with you guys, I think that will be great.”