East Hampton To Vote On Selling Poxabogue for $2 Million

Southampton to buy property for $2.2 million with money from CPF.

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.

amagansett voter October 06, 2011 at 10:23 PM
$3,250,000 Debt Remaining ? ($2,200,000) Cash Payment From Southampton CPF ($250,000) Cash from Fees $800,000 Debt to be paid by East Hampton over next four years Loss on Property?
MARTIN DREW October 06, 2011 at 10:45 PM
What is the "Appraised" value ?
MARTIN DREW October 06, 2011 at 10:48 PM
If CPF pays for it from SH ; they pay all debt ? EH out with no debt ? Win - win ; EH out with debt = win - lo$$ So who came up with $2.2m dollar value ?
MARTIN DREW October 07, 2011 at 12:29 AM
todd October 07, 2011 at 04:05 AM
Poxabogue is profitable for the town. Why sell it at a loss?
todd October 07, 2011 at 04:10 AM
Interesting that town is also paying about 180k per year for 22000 sq ft indoor hockey rink in Amagansett that was leased to Sportime by the current board. How much does Sportime pay.. 1k per month. Best sweetheart deal in town history. Bet you didn't realize your tax dollars were subsidizing an elite summer camp.
Bob Schepps October 08, 2011 at 04:26 PM
Just another double talk about political economics. Based on the numbers the comments above ring true. Why sell off an asset prematurely? POLITICS. How about making good on your COMMITMENTS before trying to wiggle your way out at the tax payers expense. And how about other purchases? Are the yeah arguments only for 4-5 years? Do economic justifications for CPF purchases change with the winds of the market? If so leave it all up to the free market and gov't should step aside. Their should be a debate based on princples and sound economic decisions that remain sound for the life of the commitment. Or just continue to play finacier w/ OTHER PEOPLE'S MONEY. (good name for a movie)
Factual October 08, 2011 at 08:42 PM
I guess Bob Scepps would rather waste $3,000,000.
todd October 09, 2011 at 12:08 AM
Community assets should only be sold by referendum. What will be sold next year by the board.. maybe beach land to oceanfront homeowners? Is that why the board majority isn't supporting CFAR?
Factual October 09, 2011 at 02:41 AM
The sale is subject to permissive referendum. A public vote is not necessary, just like it was not required when Poxabogue was purchased. There was no public vote to buy Poxabogue. Towns, villages and other units of government sell assets regularly without a public vote. Auctions for example are held regularly. As far as CFAR support, I watched the Board meeting when the Supervisor and other Board members said they fully supported CFAR and the Town Attorney was working with the Trustee attorney. I believe the Trustees and Town are being sued and the Town is actively defending the law suit. That is pretty good support. Isn't anyone offended by the Democrat ads on beach access? Notice there is not one vehicle pictured on the beach in the ad? That is because most Democrat supporters do not support vehicles on the beach, so the Democrat candidates cannot risk a picture with vehicles on the beach. I hope CFAR directly asks Cohen, Overby and Vanscoyic if they support full vehicle acces to all beaches. Also, I hope someone is asking why right behind Overby's house there is a boardwalk to the ocean from a public road with a big gate and combination lock and sign that says members of Overby's homeowners association only. Same for Klopman -- the access accross from her house is restricted to her neighbors only. Is that full access to everyone? I guess Democrat access means only where they want it and who they want it for. I know the Republicans support access at any point.
Factual October 09, 2011 at 05:01 AM
Forgot to mention earlier in response to Todd's point about Pox being profitable. I called Sups Office Friday because no one mentioned profits at the Thursday meeting. I was told the Town has not received one penny of revenue from Pox. To Amagansett Voter, there is not $3.2 million debt remaining if you read the article above carefully. The Town paid $3.25 million to purchase and has already paid six years of principal-- I believe a little less $1million based on the presentation on LTV. That leaves about $2.5 million in principal. I say why pay another $2.5 million in principal and about $300,000 in interest for nothing? The facility will be preserved forever if Southampton owns the whole thing and East Hampton residents will always be able to use it at resident rates. So why not sell it if you have the opportunity now and save almost $3 million over the next 10 years or so? Southampton is happy to own the asset in their own Town outright and East Hampton gets off the hook and saves almost $3 million in debt costs over the next 10 years. Also I find it interesting that Pete Hammerle was on the Town Board when it bought the half interest in Pox and he voted Thursday to sell it -- he obviously thinks its the right move at this point. To Mr. Drew, the people of Amagansett just voted to buy a building for the fire dept. for $2.8 million that was selling for $6 million four years ago. Value of property has dropped. And Pox has infrastructure that depreciates to boot.
todd October 09, 2011 at 12:27 PM
What do you men the town hasn't received any revenue? The above article says the town will receive between 200-250 thousand this year alone from fees generated by the golf course and restaurant operations after costs. If the bond payments are $180k per then the operation is profitable. Right?
Taylor K. Vecsey (Editor) October 09, 2011 at 01:45 PM
Todd, the figure turned out to be $200,000 that they will receive from a reserve where the fees accumulate to pay for maintenance as it comes up. Please see the updated article on the sale. Thanks for reading!
Factual October 09, 2011 at 03:44 PM
Wrong and misinformed, again.
Penny Benbenek October 09, 2011 at 10:09 PM
not to be ignorant...what is CFAR?
todd October 09, 2011 at 10:18 PM
taylor.. you're reporting that the annual fees from the restaurant and golf operations never resulted in monies going to the towns since 2004?
Factual October 09, 2011 at 11:43 PM
Todd, call Southampton and ask them if they or East Hampton ever received a dime. I talked to East Hampton and was told not a penny. Call Southampton and see what they say.
Taylor K. Vecsey (Editor) October 10, 2011 at 10:00 PM
Hi, Todd. To answer your question -- the town has not received any revenue from Poxabogue. I double checked with Len Bernard. The Town has never received any revenue from Poxabogue. He said any “profit” went into that capital reserve, to pay for capital costs to maintain the property.
Taylor K. Vecsey (Editor) October 10, 2011 at 10:01 PM
Citizens for Access Rights to the beaches


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