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Sag Harbor Getty Closes After Owner Says He Could Not Turn Profit

Publication: The Southampton Press
By Colleen Reynolds   Jan 22, 2013 9:34 AM
Jan 23, 2013 10:06 AM

The Getty gas station and auto repair shop in Sag Harbor was shuttered earlier this month after its owner, Jim Shelly, said he lost money selling gasoline in 2012 and saw no hope for turning a profit this year.

The closure leaves just one operating gas station in the village, Harbor Heights on Route 114, which currently has an application before the Village Zoning Board of Appeals to expand, upgrade and add a convenience store—an application strongly opposed by neighbors who argue the change would disrupt the character of the community.

The Getty, on Main Street, across from Mashashimuet Park and Otter Pond, was leased by East Hampton’s Georgica Services, which started running it in 2005. It closed on January 8.

Mr. Shelly, who owns Georgia Services, said that the gasoline supplier Getty Petroleum went bankrupt in April, ending Georgica’s five-year-lease of the station and losing its rent and gasoline security deposits of $25,000 in the process.

Getty Realty, the owner of the property, gave Georgica a 30-day renewable permit to stay there and assigned it to a new fuel supplier while negotiating a long-term supply lease for all its stations.

This past summer, Mr. Shelly said, the Getty lost money because the new fuel supplier, Alliance Energy Ltd., sold gas to him at prices that would not allow him to be competitive with other stations in the area. At one point, Alliance Energy delivered regular gas to him for 11 cents more than the Hess pump price. Representatives from Alliance Energy did not return a call seeking comment on Tuesday.

In December, Alliance Energy and Getty Realty entered into a 10-year lease on more than 120 properties, including the one in Sag Harbor, he said.
“Alliance offered me a one-year lease, but would not commit to a lower rent or a sustainable gas price,” Mr. Shelly said. “No one was interested in buying the business, so I decided to close.”

Five gas station attendants and a manager lost their jobs, but the mechanics are now working at Georgica Services’s shop on Springs-Fireplace Road in East Hampton, Mr. Shelly said. “Running a business where you don’t make any money is just not practical anymore—it never was.”

The fate of the property, which has been a gas station for more than 60 years, is now in Alliance’s hands, but the station, with its 1960s-style pumps, will need to be renovated, he said.

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What does Obama have to with this? If we're going to hold presidents responsible for the country's economy, then let's place the blame on the guy who incurred 2/3 of the present deficit, and left Obama with a higher unemployment rate than we have now. That would be George W. Bush (I know most Republicans would prefer to forget/deny his tenure).

Its been a tough road for all small businesses. I can say things are way better for me than they were 5 years ago. Its a shame the small gas station ...more
By Arnold Timer (57), Sag Harbor on Jan 22, 13 12:28 PM
"If we're going to hold presidents responsible for the country's economy, then let's place the blame on the guy who incurred 2/3 of the present deficit"

Obama Deficits

FY 2012: $1,089 billion
FY 2011: $1,300 billion
FY 2010: $1,293 billion
FY 2009: $1,413 billion

Bush Deficits
FY 2008: $459 billion
FY 2007: $161 billion
FY 2006: $0
FY 2005: $0


By RealityFirst (597), Bridgehampton on Jan 22, 13 2:14 PM
1 member liked this comment
Don't forget to add the two Bush tax cuts and two wars in there.
He put them on a credit card for future presidents to deal with.

Must have been excercising some of that 'personal responsibility' we hear so much about.
By philathome (8996), Southampton on Jan 22, 13 2:32 PM
Please show us the numbers that indicate how much of the deficits under the Obama administration are actually "Bush's fault".
By RealityFirst (597), Bridgehampton on Jan 22, 13 2:47 PM
Sure.
From Politifact-

"Obama inherited deficits from Bush administration

Share this story:
In a spirited and unscripted debate with the House GOP, President Barack Obama said Republicans were wrong to portray him as running up large deficits.

Speaking at a retreat for House Republicans in Baltimore on Jan. 29, 2010, Obama was particularly critical of a question from Rep. Jeb Hensarling of Texas. Hensarling asked Obama, "You are soon to submit a new budget, Mr. ...more
By philathome (8996), Southampton on Jan 22, 13 3:01 PM
Please answer the question. None of this refers to the amount of the deficits in 2010, 2011, or 2012 that GWB is 'responsible' for.

By RealityFirst (597), Bridgehampton on Jan 22, 13 3:22 PM
Sure it does.Try reading it.
It addresses the projected affect on deficits for the years that the tax cuts were in effect.
Still won't do your own research,huh?
By philathome (8996), Southampton on Jan 22, 13 3:30 PM
RF, it's an absolute guarantee that those Bush numbers don't include the "emergency spending bills".

I don't know who cooks their books better, the Fed, the Treasury, or the White House.
By Mr. Z (6249), North Sea on Jan 22, 13 4:58 PM
Thought I'd throw this in the mix:

$3.5 trillion – Economic changes (including lower than expected tax revenues and higher safety net spending due to recession)
$1.6 trillion – Bush Tax Cuts (EGTRRA and JGTRRA), primarily tax cuts but also some smaller spending increases
$1.5 trillion - Increased non-defense discretionary spending
$1.4 trillion – Wars in Afghanistan and Iraq
$1.4 trillion - Incremental interest due to higher debt balances
$0.9 ...more
By Mr. Z (6249), North Sea on Jan 22, 13 5:14 PM
4 years later and still blaming Bush
By razza5350 (1546), East Hampton on Jan 22, 13 7:55 PM
1 member liked this comment
Your handle is rather ironic. Enough other folks weighed in below so I won't add any more. Read the articles cited and try to understand that wars, corporate tax gifts, and lower overall taxes are a big part of the picture. Just because the wars were illegitimate doesn't mean you can pretend they were free.
By Arnold Timer (57), Sag Harbor on Jan 23, 13 11:04 AM
1 member liked this comment
What's not being accounted for is that Obama continued those policies. They are partially his. The Politifact piece Phil quotes is from January 2010, and a bit dated.

Factcheck addresses this as of September 2012... President Obama is falsely claiming that his administration’s policies are responsible for “about 10 percent” of the deficits “over the last four years.” The cumulative deficit during that time is nearly $5.2 trillion. Obama signed two bills ...more
Jan 23, 13 12:28 PM appended by Captn America
And Z, "it's an absolute guarantee that those Bush numbers don't include the "emergency spending bills"." They sure do count them. Supplemental spending bills are not part of the budget process, but they still are handled the same way once the funding is approved. The funds get added to the overall spending appropriations. It's difficult to plan and budget that way. For that, W should be criticized.
By Captn America (4220), Southampton on Jan 23, 13 12:28 PM
1 member liked this comment
Z, I want to stand corrected on something I've been adamant about. I found this later today: "budget rules have changed from FY2009 onward, with spending for the Iraq & Afghanistan wars and stimulus measures now included in the deficit computation. Approximately $1 trillion was added to the national debt in FY2008, considerably higher than the deficit reported in that year."

It seems the supplemental figures were not made part of the debt, but were made part of the budget deficit, two ...more
By Captn America (4220), Southampton on Jan 23, 13 7:55 PM
1 member liked this comment
"But that was just the first of four years of trillion-plus deficits. The last three budgets fall squarely under Obama. And, during that time, the federal government ran up deficits of $1.3 trillion in 2010, $1.3 trillion in 2011, and about $1.2 trillion in the fiscal year that ends Sept. 30 — for a total of nearly $5.2 trillion in deficit spending."

As of end of fiscal 2011:
$3.5 trillion – Economic changes (including lower than expected tax revenues and higher safety net ...more
By Mr. Z (6249), North Sea on Jan 23, 13 8:25 PM
I don't know he was not turning a profit that place was one of the most expensive gas stations i could think of
By 5-0 (44), Montauk Point on Jan 22, 13 2:08 PM
1 member liked this comment
Its so easy though...
By Arnold Timer (57), Sag Harbor on Jan 24, 13 7:06 PM
Way to get off topic in a hurry guys - think that's a new record.
By Nature (2593), Hampton Bays on Jan 22, 13 2:38 PM
As opposed to your "on target" comment, Nature?
By witch hazel (187), tatooine on Jan 22, 13 4:27 PM
Just makin' a point - you don't have to like it
By Nature (2593), Hampton Bays on Jan 22, 13 9:40 PM
1 member liked this comment
Here we go again on the OT Express!

Why don't you OT ranters go back to the other thread?
By PBR (4365), Southampton on Jan 22, 13 6:16 PM
BAD DOGS!

GO BACK TO YOUR CORNER!

AND STAY THERE!

http://www.27east.com/news/article.cfm/East-End/448120/Sandy-Hook-Tragedy-Is-Felt-At-East-End-Schools#comment78277
By PBR (4365), Southampton on Jan 22, 13 6:18 PM
1 member liked this comment
Wow, another Bush vs Obama deficit thread.

With wafer thin profit margins on gasoline alone, these stations need to be of the mini mart variety. Unfortunately due to zoning, it is very difficult and expensive to expand. I feel for these business owners.
By dnice (1337), Hampton Bays on Jan 22, 13 8:52 PM
1 member liked this comment
Yes, Sag Harbor soon will have no gas stations and 12 policemen...What will they do if people have no gas for their cars? No cars, no traffic violations, no DWI's, no rolling stop signs, no speed traps, no two police officers per traffic stops...Bring back your horse and buggies...
By Toma Noku (165), uptown on Jan 22, 13 9:36 PM
2 members liked this comment
Google maps says I am 1.7 miles from the Getty station and 5.4 miles from the Hess station in Watermill. I always have gotten my gas at Hess and saved 40-50 cents a gallon, not just since April when the owner says he was forced into charging exorbitant prices. He made his bed...
By VOS (616), WHB on Jan 23, 13 2:32 AM
1 member liked this comment
Yeah, not the proper financial climate to be charging that much more per gallon. As soon as you start chasing lost profits, they disappear even faster.
By dnice (1337), Hampton Bays on Jan 23, 13 9:09 AM
2 members liked this comment
Complain about paying more per gallon , do I hear a $10 American Hotel bottle of your favorite bottled water or for a $12.00 well drink or more or a $6.00 bottle of beer?
Gas stations that charge less do more volume with almost same overhead as the station with the lower volume.
Hess is the place where they control refining and distribution and their price naturally will be lower.
It seems everyone likes to pick on the gas prices why not look at King Kullen prices etc.
Toma drive ...more
By Atlanta Pop (1), sagharbor on Jan 24, 13 10:48 AM
The market has spoken.
By dnice (1337), Hampton Bays on Jan 24, 13 8:46 PM
Yep, supply and demand.

If Harbor Heights has to close for their renovation (if approved), will Sag Harbor go without a gas station, or will the Getty station be opened up in some way?
By PBR (4365), Southampton on Jan 25, 13 9:41 AM
Pellegrino by the case at the beverage is a bit more than a dollar a bottle. Mixes well 50/50 with most fruit juices, especially tasty organic lemonade, and it's good for you.

Unlimited corporate charter has led us to small businesses disappearing. Look at what happened to Riverhead's Main St. when Route 58 was developed into chains. Would you rather put food on your neighbor's table, or save a couple bucks and support a company with questionable business ethics on the world wide stage? ...more
By Mr. Z (6249), North Sea on Jan 26, 13 10:16 AM
There are plenty of small businesses that have managed to stay open through sound strategy and customer service.
By dnice (1337), Hampton Bays on Jan 26, 13 6:33 PM
2 members liked this comment
Alliance Energy may have plans to renovate this property, in order to maximize their investment. The auto repair business will probably not be part of any new operation there, whatever form it takes. Their apparent refusal to work with Mr. Shelley on a new lease speaks volumes IMO.

Alliance is likely watching the fate of the Harbor Heights application to expand and include a mini-mart, which has come under fire for being too expansive.

This trend has taken hold on the East End, ...more
By PBR (4365), Southampton on Jan 27, 13 7:19 AM
1 member liked this comment
"Shelly" is the correct spelling, sorry.
By PBR (4365), Southampton on Jan 27, 13 7:30 AM
Closing? Oh, man, that sucks. Remember when Rick Ryder (good dude) had it. Best of luck to you, tough break.
By **HBQueenBee** (37), Hampton Bays on Jan 28, 13 11:46 AM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By Sag (45), Sag harbor on Jan 28, 13 12:02 PM
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By Sag (45), Sag harbor on Jan 30, 13 4:13 PM
Ha !
By Sag (45), Sag harbor on Feb 1, 13 10:52 AM
This Getty is open again.
By PBR (4365), Southampton on May 15, 13 12:37 PM
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