East Hampton Town Grapples With Legal Gray Zone

As East Hampton Town moves rapidly toward code changes that would make it more difficult for hotels to add bars and restaurants, at least one town councilman is suggesting that the proposal, which could be voted on as early as tonight, does not go far enough. Since an Oct. 11 hearing on the code change, the town board has received many messages of support and pleas for it to do more. On the other hand, some owners of resort properties, as well as the Montauk Chamber of Commerce, have expressed alarm. 

Responding to years of complaints about hotels and modest restaurants drawing crowds far in excess of their overnight guest capacity, particularly in Montauk, town attorneys began drafting new rules earlier this year. The amendments proposed would ask some hotel owners looking to expand to provide parking spaces on their own property commensurate with their current capacity and for half of their expected occupancy, whether indoors or out.

Though some of East Hampton Town’s hotels and motels are on land zoned for resorts, a considerable number are not, having been established prior to zoning regulation. Some of these businesses fall into a legal gray zone in which, technically, they are not supposed to grow, but in practice have found plenty of wiggle room within the town code; others are zoned correctly, but have created problems nonetheless.

Estimates vary about how many places that now offer accommodations one night at a time would be affected. A town-commissioned study said the total was fewer than 30; members of the town business advisory concluded that the number was as high as 65, East Hampton Town Councilwoman Sylvia Overby said during a board meeting in Montauk on Tuesday.

The new rules would allow hotels and clubs to have a small area set aside for items guests use, such as toiletries, as well as “signature or logo” items such as hats, T-shirts, or coffee mugs. The tougher parking requirement were intended to limit additional dangers to drivers and pedestrians or anything that would “otherwise negatively impact town highways and the community as a whole” if a bar, tavern, or restaurant was added.

The amendments would also limit the size of any additional services, whether indoors or out, to no more than a third of the existing operations’ functional square footage. At present, some former motels, such as the Montauk Beach House, Surf Lodge, and Ruschmeyer’s Inn in Montauk, have devoted large swaths of their grounds to outdoor concerts, D.J.s, and general revelry.

Paul Monte, whose family at one time owned Gurney’s Inn, worried in an email to Montauk Chamber of Commerce members that the change could “become a slippery slope resulting in the loss of significant grandfathered rights from all types of businesses and a great loss in commercial properties’ value.”

Now under corporate ownership, Gurney’s Montauk Resort and Spa, has opened a club on what it calls “our 2,000-foot private beach” with hundreds of beach chairs and umbrellas and 16 king-sized daybeds, all available for daily rental, with bar and food service and live music, in front of its main building. Day charges are in the $750 range.

During the Tuesday meeting, Councilman Jeff Bragman said he was in favor of the parking proposal but he was not sure it would work as intended. Nevertheless, he said, “It’s a good start, better than doing nothing.” 

From his perspective, Mr. Bragman wondered if town law should be amended to strike new restaurants and bars from the list of what is allowed at hotels. “I don’t see them in any way a benefit to the community. It is worth considering taking a stronger stance,” he said. When the zoning code was adopted, that level of service was never intended, he said.

“There are lots of letters from residents saying don’t let them do it,” he said. “They’re scared. I don’t think Montauk needs any more of this.”

Councilwoman Sylvia Overby, who had brought up the proposed parking requirements at the meeting, responded. “This law was to make sure that you could accommodate people at your motel.” That, she said, was reasonable.

“This is not something that we should just ban, but we should be careful that the expansion should not hurt local businesses,” Town Supervisor Peter Van Scoyoc said. He added that such amenities for overnight guests were desirable, but that the town needed to add a degree of control.

Ms. Overby took up Mr. Van Scoyoc’s observation about competition with existing eateries. “We need to also support local businesses by not spreading out with the more restaurants. We do need to consider the other businesses that are downtown as well. We should make sure that they can survive,” she said.

In Mr. Bragman’s view, the traditional, small motels in Montauk are a boon to restaurants nearby. “I don’t think we have an obligation to let these little motels change into something else. I think we might go a little further,” he said.

At this point Michael Sendlenski, the town attorney, spoke up to say it was not legally possible to limit a hotel’s bar or restaurants to people staying there. “I think that’s a danger,” Mr. Bragman said.

A potential loophole pointed out on Tuesday by Mr. Bragman was that the town planning board would be able to waive or reduce the strict parking calculations on a case-by-case basis.

Concerns have been heightened recently with reports that the Atlantic Terrace hotel had been sold and that the new Journey East Hampton hotel on Pantigo Road in East Hampton had obtained a State Liquor Authority license for an outdoor poolside bar for up to 200 patrons. Similar worries have circulated about the Hero Beach Club, which has been tangling with the town over its plans for a bar. A single investment company, Bridgeton Holdings, owns equity in all three establishments.

During the Oct. 11 hearing, Montauk residents had pressed the board to do something about summer noise, traffic, drugs, and fights that create a sense of chaos. The proposal would mean that businesses seeking to expand or add amenities would have to meet current parking requirements before getting approvals for anything new. A large quantity of letters and emails supporting the new limits poured into Town Hall subsequently.

“I want to tell Montauk, ‘We’re listening to you,’ ” Mr. Bragman said.