East Hampton ditches its share of debt-heavy park at a loss

New York /
Jun.June 29, 2012 02:30 PM

East Hampton Town is set to sell off its stake in the Poxabogue Golf Center in Sagaponack to Southampton Town for less than $3.25 million after legislation approving the deal passed last week in Albany, the East Hampton Star reported. East Hampton and Southampton each purchased a 50 percent share of the 39-acre golf course for a total of $6.5 million in 2004. Now that the state has given the authorization needed to sell public parks or recreational land, Southampton will take full control of the property.

The sudden liquidation of the public land comes in response to mounting debt from the original purchase of the course. East Hampton still owes $3 million in principal and interest on the bond issued to buy its share of Poxabogue. The proceeds of the sale will be used to pay $180,000 a year for four years on the debt and then to pay the bond off in full, saving $100,000 in interest costs. Ultimately the deal represents a net loss for the town. “It’s interesting in some ways, because basically the asset is diminished because it’s now parkland,” Councilman Van Scoyoc said.

Part of the legislation authorizing the sale stipulates that the park must remain open to East Hampton residents but does not address whether citizens will continue to receive residents’ discounted fees. [EHS]


Related Articles

arrow_forward_ios
Robert Futterman charged with DUI in Hamptons car crash
Robert Futterman charged with DUI in Hamptons car crash
Robert Futterman charged with DUI in Hamptons car crash
Philip Falcone and his homes at 142 Crestview Lane in Sagaponack and 22 East 67th Street (Getty, Corcoran, Google Maps)
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
Solow Building Company chairman Stefan Soloviev, CEO Michael J. Hershman and vice chairman Hayden Soloviev (Solow Residential, Fairfax, LinkedIn)
Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
Philip Falcone and his homes at 142 Crestview Lane in Sagaponack and  22 East 67th Street (Getty, Corcoran, Google Maps)
Foreclosure on Phil Falcone’s homes can move forward
Foreclosure on Phil Falcone’s homes can move forward
90 Jule Pond Drive (Sotheby’s International Realty)
Hamptons estate asking $145M under contract, may set record
Hamptons estate asking $145M under contract, may set record
90 Jule Pond Drive is on t he market for $145 million (Sotheby’s International Realty)
$145M Hamptons estate languishes on market amid surging demand
$145M Hamptons estate languishes on market amid surging demand
The Hamptons have always been a hot location, but the rental market for this summer is already roasting.
The tri-state rental market’s endless summer
The tri-state rental market’s endless summer
Stewart Rahr and Hamptons estate in Wainscott (Getty, Bespoke Real Estate)
Pharma billionaire to sell Hamptons estate for $50M
Pharma billionaire to sell Hamptons estate for $50M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...