Suit on Takeout Law
The new owner of the former Oceanside Motel in Montauk, now called Hero Beach Club, has sued East Hampton Town over its adoption last month of a law that prohibits resorts from having takeout food shops.
Jon Krasner, the managing partner at Hero Beach, bought the hotel in October. In March, he submitted an application to the town planning board for approval of renovations that included the conversion of a four-unit building into what is described in Planning Department documents as a 1,440-square-foot store, with a 1,000-square-foot basement area and a new sanitary system, and two decks, of 463 square feet on the first floor and 515 square feet on a second floor. In addition, a new 3,675-square-foot wood deck over an existing swimming pool and deck was also proposed.
The resort’s value has “decreased significantly” without the ability to sell food and beverages, Tiffany Scarlato, a Sag Harbor attorney representing Hero Beach Club, wrote in a submission to State Supreme Court.
“A retail food and beverage service at a motel, resort, or hotel is now an anticipated amenity at every transient motel establishment, and without this use, hotels, motels, and resorts are rated lower, are far less valuable, and attract far fewer patrons,” according to the lawsuit.
Montauk resort visitors, Ms. Scarlato wrote, anticipate “that one would be able to obtain a cup of coffee in the morning and a fresh-made sandwich or salad and a beverage while relaxing by the pool or after a long day at the beach.”
While a judge declined last week to issue a temporary restraining order prohibiting the town from enforcing the new law, a hearing will be held next week on enjoining the town from acting, and a court date has been set for August regarding the lawsuit.
The town law adopted on June 15 was meant to create a new category under zoning for takeout food stores, and to allow such stores to have a limited number of seats for patrons. However, the law also specifies that such stores are not allowed in motels or resorts.
In its lawsuit, Hero Beach Club claims that the town failed to fully describe the impact of the proposed law, as required, and that the law should be invalidated.
The lawsuit cites public comments by East Hampton Town Supervisor Larry Cantwell, who questioned the intent of the renovations proposed at the motel and whether it was designed to accommodate more than the sale of takeout food. He expressed concern that the motel would become another club-type destination for food and drink, circumventing what is envisioned for such sites under town zoning.
The law was “purposely, without reason” designed to thwart the Hero Beach plans, the motel’s lawsuit claims. Its application to the planning board for the store was the only one pending at the time, the lawsuit says, “and it was made clear by public officials” that the law “was intended to stop this particular application in its tracks.”
With the new law in effect, the motel’s planning board application can no longer be processed, and it will need a use variance from the zoning board of appeals to proceed with its plans.
Mr. Krasner claims that the motel has been singled out and subjected to continued inspections “aimed at creating and then discovering violations on the property at the direction of the town board. . . .”
In addition to a declaration from the court that the new town law is invalid, the lawsuit seeks an award to Mr. Krasner for violation of his constitutional rights and for attorney’s fees and other costs.