The East Hampton Town Board is expected to approve to the Town of Southampton for $2.2 million on Thursday night.
After the former owner put in plans to develop the golf center, each town purchased half of the Sagaponack property in 2004. Southampton used money from the Community Preservation Fund, while East Hampton bought it with general fund money because the property was outside of its boundaries.
East Hampton bonded for $3.25 million and shared minor costs for legal fees with Southampton, according to town attorney John Jilnicki.
The town will also cash in on between $200,000 and $250,000, half of the fees minus maintenance fees, that have been collected at .
The sale is "a win-win" for the town, said Councilwoman Theresa Quigley, earlier this week. The town has been a silent partner with Southampton, she said. Now, "We take the debt off our books and keep the asset. We get the asset without the debt."
In his 2012 budget, Supervisor Bill Wilkinson outlined that the revenue will help pay down debt principal on the property over the next four years, which he said totals about $180,000 per year. The original bond will then be paid off.
"The debt balance will be paid in full after the tenth year of the loan issuance date thus saving the town $100,000 in interest that would have been paid over the last seven years of the original bond," Wilkinson wrote.
Southampton Town Supervisor Anna Throne-Holst said CPF money will be used, once again, for the purchase. "If we couldn't use CPF funds, it wouldn't be possible," she said of the town's current financial state.
When asked about the sale, state Assemblyman , the author of the CPF law, said he thought East Hampton might have to ask the state Legislature for the approval to sell Poxabogue because it has been used as park land. In a process called "alienation of park rights," the town would have to purchase another property of equal value to make up for selling one park off.
However, Jinicki said the town has found itself in a unique situation. "We're not getting rid of a park, the park is going to stay there," he said. Since Southampton's initial purchase was with CPF money and the pending purchase is also with CPF money, the golf center will have to remain as such.
He does not believe a bill from the legislature is necessary. However, he said, if it turns out the assemblyman's research proves otherwise, the town would ask for the approval.
Wilkinson said the Southampton had the right of first refusal in the initial contracts.