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Jan 31, 2018 2:36 PMPublication: The Southampton Press

Service Station Restaurant Owners Are Out; Lease Sold Back To Landlord

The Service Station restaurant in East Hampton. KYRIL BROMLEY
Feb 5, 2018 10:17 AM

The owners of the Service Station restaurant in East Hampton have sold their lease back to their landlord as the result of a legal settlement, after the details of the lease agreement led to a lawsuit.

Michael Gluckman and Shane Dyckman, who opened Service Station in 2016 at 100 Montauk Highway—a space formerly occupied by Nichol’s Restaurant and Winston’s Bar and Grill—announced the sale via the restaurant’s Instagram account on Tuesday, January 30, pointing fingers at “over zealous” code enforcement.

Mr. Gluckman and Mr. Dyckman would not disclose the amount the landlord, FF&G Realty Corp., paid to buy back the lease of the restaurant. The restaurateurs said on Wednesday, January 31, that the sale settles a lawsuit they filed against FF&G in September last year concerning use of the site’s brick patio.

Mr. Dyckman, who also owns SagTown Coffee in Sag Harbor, said that he and Mr. Gluckman were “under the assumption” that seating customers on the brick patio was permitted, and Mr. Gluckman said that permission for outdoor seating was included in the lease he and Mr. Dyckman signed with FF&G. However, James Fischer, one of the principal owners of FF&G, said on Wednesday that outdoor seating was not included in the lease signed in March 2016.

The Service Station owners sued their landlord after they were sued by the Village of East Hampton in July last year for violating village code by using the outdoor brick patio as extra space for the restaurant. The lawsuit was brought forth after Robert Jahoda, a village code enforcement officer, saw customers being served food on the brick patio on July 21, 2017. The use of the patio for outdoor dining had been previously cited by East Hampton Village Code Enforcement Officer Kent Howie on August 23, 2016. According to the village lawsuit, FF&G built the outdoor patio after being denied permission for it by the Village Zoning Board of Appeals in 1977. While the ZBA allowed the patio to stay on the condition that it not be used for outdoor dining in 1986, an amendment to village code by the Village Board of Trustees in 2009 stated “no variance shall be granted to permit the introduction of any outdoor use, including outdoor dining, to a preexisting nonconforming commercial use in a residential district.” Village Administrator Becky Hansen said on Wednesday that Mr. Gluckman and Mr. Dyckman pleaded guilty to violations and signed a stipulation of settlement. Mr. Gluckman said that he and Mr. Dyckman paid off a $1,000 fine to the village.

Mr. Fischer said the lease for the restaurant building was recently picked up by a new company called Quiet Clam, LLC. He added that there will be a “short-term closing” of the restaurant in order to figure out who will be in charge of operations, and gave an estimate of two weeks to figure out who takes leadership of the eatery.

“It’s really unfortunate because we worked so hard on the restaurant and it was very popular in the community,” Mr. Dyckman said.

“We want a new project where we don’t have problems with the village,” Mr. Gluckman said.

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Welcome to BanHampton... the land of NO! Where local government goes out of its way to discourage locally owned small businesses and drive out year round residents.
By localEH (326), East Hampton on Jan 31, 18 3:23 PM
Right EH. Perfect for people to come out and live like hermits in their homes. Nothing to do in winter. They are getting what they want. A three month community with no local establishments in the winter.
By The Real World (349), southampton on Jan 31, 18 3:42 PM
2 members liked this comment
Shameful!
By MelissaA (41), Sag Harbor on Jan 31, 18 5:17 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By Just sitting on the taffrail (31), Southampton on Jan 31, 18 8:00 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By toes in the water (688), southampton on Feb 1, 18 6:30 AM
Come on. The business didn't fail because of the patio. Just hard to make numbers work in that location with high cost of rent, labor etc. BTW, the patio was noisy and unpleasant when used by earlier restaurants.
By harbor (366), East Hampton on Jan 31, 18 5:21 PM
1 member liked this comment
Could be why the patio seating profits are needed.
By Mr. Z (10560), North Sea on Jan 31, 18 7:52 PM
1 member liked this comment
Given what it says in the article its pretty clear that the outdoor patio was built without permission and permission was never granted for it to be used as outdoor seating so don't blame the Village for enforcing rules that have been in place since at least 1986!
By Rich Morey (331), East Hampton on Jan 31, 18 6:37 PM
1 member liked this comment
Shame on East Hampton, but the rest of the "Hamptons" is no better. Code enforcement should just be used for safety issues, otherwise it's just another way for towns to rake in more $$$.
By rvs (93), sag harbor on Jan 31, 18 9:07 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By bigfresh (3757), north sea on Jan 31, 18 9:08 PM
1 member liked this comment
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By toes in the water (688), southampton on Feb 1, 18 6:33 AM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By lirider (244), Hampton Bays on Feb 1, 18 7:31 AM
EH SUCKS! They are crazy, instead of allowing a small business to thrive, they just shut EVERYTHING down. Thats why the Hamptons really suck and the good days are over!
By victoria (7), southampton on Feb 1, 18 10:46 AM
There was an accident there in the mid-90's where then supervisor Cathy Lester was almost hit by a car while dining at a table on the patio.
By Hobie58148 (13), East Hampton on Feb 1, 18 10:52 AM
CAVEAT EMPTOR,
By bigfresh (3757), north sea on Feb 1, 18 11:56 AM
Not too smart to read what you can do in a lease. Looking for the quick buck. How can you survive being open six months? No pity...
By knitter (1484), Southampton on Feb 2, 18 9:41 AM
Golden Ticket is not transferable.
By bigfresh (3757), north sea on Feb 3, 18 1:32 AM
Scammers a jammers, they deserve each other
By icecreamman (395), Southampton on Feb 3, 18 8:09 AM
1 member liked this comment
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By lirider (244), Hampton Bays on Feb 4, 18 7:54 PM
1 member liked this comment
halloween, party, sag harbor,