Dan's Papers - June 13, 2008 - Preserving The Community Amid The Fracas

What is the purpose of a Community Preservation Fund if not to preserve all aspects of the community?

The East End of Long Island is at a crossroads concerning open lands, historic buildings, traditional farms and the administration of all of the above. Recently, the supervisors of both East Hampton and Southampton were thrown a curve when legislation by State Assemblymen Ted Thiele and Mark Alessi, along with State Senator Kenneth La Valle, included provisions that basically eliminated or severely reduced CPF monies from being used for salaries and administrative costs. However, a subsequent meeting, according to Scott H. Wilson, Director of Land Acquisition, "has eliminated that threat."

When the trio of state representatives created the CPF in 1998, it was celebrated with a signing on a Southampton farm field by then Governor George Pataki. The 2% tax collected on the amount of a real estate transaction over $250,000 was estimated to bring in $100 million over 10 years. Instead the tax has brought in over $520 million to date. The original piece of CPF state legislation allowed 10% of the collected money to go toward administrative costs, now estimated to be around $500,000 per year Southampton and around $230,000 for East Hampton.

With both East Hampton and South Hampton townships' spending of this money being audited, concerns are now being raised as to whether the commotion is in fact affecting the forward progress of projects such as the purchase of the 28 acres of Boy's Harbor, the Lester House, corner of Cedar and Main Streets (both in East Hampton), the Struk Farmers Market on Route 27 in Amagansett, and the Strong property (where Pike's farm stand operates). According to Wilson, the audits and questions have had no bearing on these projects.

The perception of problems may have started when it was reported that East Hampton Supervisor William McGintee co-mingled CPF funds and town funds to patch up an $8 million budget shortfall in East Hampton. CPF activists reacted to protect against misuse of the huge monies collected - and that misuse included administrative costs. On the other side were the town politicians faced with the reality of real estate closings, legal matters and hidden costs of CPF purchases who did not want property tax payers financing the administration of a state legislated tax program. What seems to be in play is who will control the hundreds of millions of dollars come? The town supervisors or the state legislators? A sticky wicket is that these factions just happen to be in opposing political parties at the moment. But despite the fracas, the CPF has been a success. Many hundreds if not thousands of acres of open land and farmland have been secured by purchases. In fact no one really is disputing the success. At a meeting last week, Wilson showed me a detailed list of around 1500 proposals for East Hampton's CPF and provided a status report. The work restoring the Lester House (also knows as the Labrozzi property) will be completed this fall. Referring to Boy's Harbor, Wilson said, "It's going to happen. There were some problems because it is a joint purchase with Suffolk County, but the 28 acres will be purchased for $7.3 million." He said that the Farmers Market "is also going to happen. The lawyers are ironing out details. There is no price problem - just lawyer things."

Efforts to chastise McGintee on perhaps his prize project, the Adelaide deMenil and Edmund Carpenter historic buildings project, have nothing to do with the CPF because they are municipal buildings. These well preserved historic buildings will ultimately be converted into East Hampton's Town Hall, and their upkeep and administrative cost will be in the town budget. McGintee opponent Jay Schneiderman reportedly predicts the cost of the project to be twice the estimated $5.5 million the Town originally estimated, but McGintee reportedly disagrees. One wise old town resident summed it up this way, "If you like history, our culture and preserving things you love this project, if you hate McGintee, are angry about your taxes, then you see this as a mistake." A town employee said, "30 years from now it's going to show great foresight, just like the plan to preserve Central Park in New York City."

Perhaps the crux of the matter for all the issues surrounding CPF spending is just basic economics. This money has been paid by homeowners who bought properties since 1999 and paid that 2% tax after the initial $250,000. After my visit to Wilson in his trailer, it becomes clear that the money is being wisely spent to preserve the community on the East End. How that concept of "community" will ultimately be defined is another matter.