East Hampton to Close Deal on Star Room Purchase

The Town of East Hampton has acquired the Wainscott property on which the former Star Room nightclub, once known as the Swamp, is situated.

The town will pay $2.1 million for the 1.1-acre commercially zoned property on Montauk Highway using the community preservation fund and a $300,000 donation from the Friends of Georgica Pond Foundation. The not-for-profit organization was founded by pondfront property owners to identify sources of pollutants contributing to the algal blooms that have fouled the water body in recent years.

The closing is to take place on Tuesday at 11 a.m., at which time the foundation is to present a check.

The derelict buildings on the property are to be demolished and removed, according to a release issued by the town on Monday. The town will develop a management plan that will address the open space values and potential use of the land as part of a soon-to-be-finalized Wainscott hamlet study and plan.

The announcement comes three months after the town board voted to purchase the property, a move that many Wainscott residents had urged. The property was owned by the estate of Isha Kausik, but a bank, which held a $2.5 million mortgage on it, had to approve the town's purchase.

A recent proposal to build a car wash on the property was stridently opposed by members of the community, who feared an increase in traffic and a detrimental environmental impact.

Scott Wilson, the town's director of land acquisitions and management, said in October that the town has been eyeing the site since 2015.