Colchester officials have given preliminary approval to a proposed $8 million lakefront lodging development — a move that has angered many residents who now plan to appeal the decision.

Hazelett Strip-Casting Corp. describes its development as a “20-room inn” with five “cottage-style” units built into the slope overlooking Malletts Bay to house a restaurant and event space, with almost 100 parking spots mainly on the opposite side of East Lakeshore Drive.

Opposed residents dispute that characterization of the development — called The H at Malletts Bay — and continue to raise concerns about its potential effect on water quality, increased traffic and pedestrian safety, and setting a precedent for large development along the scenic waterfront.

“We are disappointed with the decision, be

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