Sag Harbor Village has agreed to sublease the so-called "gas ball lot" from the developer Adam Potter, who controls 5 Bridge Street Limited Liability Company, which was awarded the lease by National Grid at the end of last year. The village will pay $52,500 annually for the next three years.
"Our bid with National Grid was $50,000 a year," Mayor Thomas Gardella commented at Tuesday night's village board meeting.
"It's great, isn't it?" said Tiffany Scarlato, the lawyer representing Mr. Potter, after the meeting.
"We were able to come to an agreement," the mayor said afterward. "We'll have the lot open this season for the public. We're going to have to recoup the money somehow, likely through paid parking." The village's lease begins Friday.
"As I've said many times in the past, I believe the lot should be open to the public, and I'm pleased we were able to reach an agreement with the village," Mr. Potter said in a phone call.
"I think there's a better use for it," said Aidan Corish, a trustee, meaning paid parking. "The village needs additional income streams." The lot is currently being used by tradespeople as long-term parking, he noted.
Mr. Corish was instrumental in the creation of paid parking on Long Wharf. The money raised from that lot has been used for sidewalk repairs.
"We're coming into budget season," said Mayor Gardella. "Every year, to meet or stay at our cap, we have to dip into unimplied funds. What we need to do is create long-term revenue streams so we can meet our goals and pay our bills, without having to raise the tax rate."
While the board is only in the brainstorming phase, merging the gas ball lot with the adjacent Meadow Street lot is a possibility, said Mr. Corish. Doing so would allow for the creation of some A.D.A.-compliant parking spots, where none at present exist. The charge would be lower than the wharf lot rates, with the first hour free and no charge after 10 p.m.
"Maybe each store gets a few numbered placards that employees can attach to their cars, just for that lot," said Mr. Corish. State law prevents the village from offering residents special rates on street parking, but resident stickers may be issued.
Any improvements made to the gas ball lot will need to be approved by National Grid and the State Department of Environmental Conservation, because, as a Superfund site, it is under a site management plan. As the master leaseholder, Mr. Potter will also have to sign off.