Despite Objections, East Hampton Officials Approve Poxy Sale

Despite requests for more information and more time to hear residents' concerns, the East Hampton Town Board of its share of on Thursday night. 

The Town of Southampton, which owned half of Poxabogue already, made an offer of $2.2 million through its Community Preservation Fund. In accepting the offer, East Hampton will also receive about $200,000, half of the total in an account that collects the golfing fees.

Len Bernard, the town budget officer, said the $2.4 million from the sale will be put into a reserve account and used to pay down the principal debt on the $3.25 million bond. By state law, municipal bonds cannot be paid off until the 10th year, which will be in 2016.

According to Bernard, over the next four years, $685,000 will be paid on the bond principal from the reserve account, money that he said would have come from the tax levy otherwise. At the end of the bond's 10th year, $1.75 million would be leftover from the sale. The remainder of the bond will be $1,717,000, which will be paid off with some to spare.

The bond to buy Poxabogue was for 18 years. Bernard said the town stands to save $2 million from paying it off eight years early. If there was no sale, the town would have to pay $250,000 a year in debt service for the last eight years, from 2016 until 2023.

But, Zachary Cohen, the Democratic candidate for supervisor, said something is off about the numbers. While Bernard said that the interest on the bond for the next four years, $330,000, would be a general fund expense, Cohen thought the interest should be paid each year out of the proceeds from selling Poxabogue. 

Either way, Cohen claims there will be "a shortfall" of about $350,000 that must be paid by East Hampton taxpayers until 2016.

Jordy Mark, who as the then co-chair of the Wainscott Citizens Advisory Committee had the idea that the town should buy Poxabogue with the Town of Southampton, told the board it had been "one of the most enthusiastic purchases in East Hampton."

"I think you are selling us all short," she said, adding a request that the resolution be tabled and that it deserved a public hearing.

Samuel Kramer, who co-chaired the Wainscott CAC with Mark, also wrote a letter in objection. That letter has been posted here.

Supervisor Bill Wilkinson and Councilmen Dominick Stanzione and Pete Hammerle voted to approve the sale, while Councilwoman Julia Prince, who said she supported the sale, abstained. Deputy Supervisor Theresa Quigley, who has said she supported the sale, was not present.

Later, Prince explained her abstention by saying that while the town wasn't required to hold a public hearing, she thought it would be another opportunity to hear residents. "Who knows, it may have changed my vote."

Cohen had said "vital" information was left out of the decision, such as how many rounds of golf are played by East Hampton residents and what is the total amount of money saved from residents' discount.

Weekend rates, for example, are $40 for non-residents, $28 for residents, according to the pro-shop.

Bernard and the supervisor said Southampton officials were open to the idea of affording East Hampton residents the same discounts.

Also, he wanted to know what the projected income from Poxabogue was for 2012 through 2015.

After the meeting, Bernard said the town sees no revenue from Poxabogue, but that the money collects in a capital reserve account used to take care of maintenance, like a recent mole problem.

There was also some concern that the contract was only a draft version.

Town Attorney John Jilnicki explained after the meeting that the provision about East Hampton getting the $200,000 in reserve funds had to be added to the contract.

Also being added to the contract was a provision for approval from the state legislature, which Jilnicki said was necessary afterall. The town needs the okay for "an alienation of park land," according to counsel for the state, Jilnick said.

Even though Poxabogue will remain a park since Southampton is buying it with CPF money, the state still has to pass a bill approving the transfer. Assemblyman Fred W. Thiele Jr., I-Sag Harbor, said this is a common occurrence.

East Hampton will also have to purchase another property of equal or more value for park land designation to make up for selling Poxabogue. Jilnicki said the town will use money from the CPF to do so, and that there is a long list of properties the town is interested in.