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Town Votes to Acquire Five Parcels at Bargain-Basement Prices

Thu, 12/19/2024 - 10:26
Scott Wilson explained this week how the town could wind up with four county properties to potentially add affordable housing.
Christopher Gangemi

The East Hampton Town Board passed a somewhat rushed resolution Tuesday, allowing the town to spend just over $500,000 to acquire five pieces of land, including one 7.7-acre tract, from Suffolk County. Four of the five parcels would be used for affordable housing and one unbuildable lot in Montauk would go to open space. Supervisor Kathee Burke-Gonzalez explained that the county had set tomorrow as a deadline to authorize the expenditure.

The board must still hold public hearings on the acquisitions before making a formal decision to acquire the parcels, and the County Legislature will have to sign off on the sales.

The prices are below market, a result of the county’s “72H” program, which allows it to acquire properties for failure to pay taxes and then either auction them off or sell them to a local municipality. In the latter case, the land must be used only for open space or affordable housing.

Eric Schantz, the town’s director of housing, told the board that the largest lot, 7.7 acres on Town Line Road in Wainscott with an asking price of only $100,000, represents a “rare opportunity.” “It is contiguous with existing open space, but the intention here is to use it for affordable housing. As the board knows, there are not many large lots that are available throughout the town.”

The land lies just south of the Sag Harbor Village border and in a water-recharge overlay district. “The zoning, right now, permits one residence; however, if the town board did want to pursue additional homes on that lot, there is, in theory, the possibility to do that if we go through the appropriate channels of rezoning and subdivision,” Mr. Schantz said.

The next-largest lot, on Two Holes of Water Road in East Hampton across from Chatfield’s Hole Preserve, is also in a water recharge overlay district and contiguous with open space. The 5.8-acre lot, another $100,000 bargain, is currently vacant but zoned for residential use, and would also be intended for affordable housing. Mr. Schantz noted that, like the Town Line Road lot, it could house just one residence, but far more affordable housing.

In an email, he confirmed that if the town ultimately attempts to rezone either large parcel for affordable housing, it could yield, with recent zoning changes, 60 housing units for seniors, provided a sewage treatment plant was included. For non-seniors, 60 units could go on the Town Line parcel and up to 46 at Two Holes of Water. He said, however, that his staff is leaning toward single-family residences on those two parcels, which could yield anywhere from five to 15 houses on each.

The town could acquire the least expensive lot, nearly half an acre at the dead-end intersection of Greenwich Street and Garfield Avenue in Montauk, for under $6,000. Mr. Schantz explained that wetlands prevent that lot from being developed.

The most expensive lot, at 31 Cedar Street in East Hampton, has a dilapidated house on it that would need to be removed. Its price is $225,000. “The plan is to replace it with one single-family residence,” Mr. Schantz told the board, “but there might be an opportunity for a duplex.” He noted, however, that the location, walkable to East Hampton Village and close to the Emergency Services Building, was excellent for affordable housing.

A last buildable lot, $75,000 for .18 acres at Harbor Boulevard and Park Street on the border of Springs, could add another single-family residence to the town’s affordable-housing stock.

“I’m glad they’re coming around to re-offering these properties to the town,” said Scott Wilson, the town’s director of land acquisition. “This is our fourth time trying to acquire these properties.” He noted that the town must ensure there are no liens on the properties or legal challenges from past owners, which could prevent their use for housing. Regardless, they could be held for open space.

Earlier in the meeting, David Buda, a resident, said the properties had been won by other bidders, and asked how the town could still acquire them.

“Could you explain the process, and why it looks like we’re trying to purchase sold properties?” Supervisor Kathee Burke-Gonzalez asked Mr. Wilson.

He replied that the county had made clear during the auction process that it could still offer the parcels to townships, despite a winning bid by an individual. “There’s no guarantee the county will actually transfer the properties to the winning bidders,” Mr. Wilson said. “The county has offered each of the towns within the county who had properties for auction, not just East Hampton — those properties were offered back to the townships.”

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