Southampton Town Closes On Joint Purchase Of Lobster Inn Property

Southampton Town officials closed on the purchase of the Lobster Grill Inn in Shinnecock Hills for $7.6 million last week, making the purchase using Community Preservation Fund revenues.

The sale was a joint purchase, with Inlet Road Operations Corporation spending an additional $850,000, to make the total purchase price $8.5 million.

Inlet Road Operations Corp. is affiliated with the Manna Ocean Foundation, which will operate a private aquaculture facility at the location.

Along with a focus on aquaculture, officials hope to use the property as a combination public marina and preserved space, which could provide opportunities for improving the water quality and providing recreation space for the public.

The total amount of land purchased was close to 10 acres; 5.2 acres will be preserved by the town as open space and as a public marina. The town’s Parks and Recreation Department will manage the marina.

The additional acreage that was obtained in the purchase, according to a press release issued by Douglas Elliman, “will be used for development rights to encourage an aquaculture farm with a small restaurant, operated by third-party aquaculture owner, Inlet Road Operations Corp.”

“It’s positive for the whole community,” David Donohue, who, along with Joe Peraino, brokered the sale, said in the press release. “Joe and I are very happy to have been involved in this transaction, which keeps part of the property available for public use and provides wonderful opportunity for local aquaculture.”

On Wednesday, July 25, Town Supervisor Jay Schneiderman said there were many positive aspects to the sale. For example, the town purchased the development rights for a portion of the property that could be used to create a fish farm. Technically, the property could be used for any other agricultural use, but, being close to the water, Mr. Schneiderman said, it made sense to open it to aquaculture.

He also said the property will offer a spot for people to go and have lunch on the water where the fish that is served in the private restaurant is caught locally by commercial fishermen. The marina will offer affordable boat slips to local boaters, as well as an access point for kayakers and paddleboarders to launch.

“If we hadn’t stepped in, it would have been a 25-unit condominium complex,” said Mr. Schneiderman, explaining that the restaurant would have been a clubhouse for the residents and the marina would have been private. “I’m not sure that any of that is terrible. I just think this is a better option.”