Smithtown residents called on the town board Thursday to reject a proposed four-story, 130-room hotel on the Watermill Caterers property.

Watermill owner Anthony Scotto wants to built the hotel on the east side of the catering hall, in the parking lot. It's located at the intersection of Route 347 and Terry Road. Neighbors say it will lower their property values and destroy their quality of life.

Scotto's attorney said the project could generate $680,000 in tax revenue for the town.

Smithtown Supervisor Ed Wehrheim says he's listening to residents' concerns but adds that the board's research shows the hotel will benefit the town financially.

Scotto says it will be a boutique hotel that will help, not hurt, the town.

The proposal must go before the town zoning board because it requires a variance to construct a four-story building. A date for that review has not been set.