Larocca Says Interim Public Service Commission Ruling Is Good News for Sag Harbor in Gas Ball Parking Lot Fight

Sag Harbor Village Mayor Jim Larocca says a decision, released on Friday, January 20, by the New York State Public Service Commission, is a small victory in the village’s effort to wrest control of the National Grid gas ball parking lot from the grip of developer Adam Potter’s 11 Bridge Street LLC.

The PSC, though it didn’t issue a final ruling, did determine that the village’s objection to the 99-year lease that Potter had obtained for the property “requires further review and the commission’s written consent.” That’s important, the mayor said, because in cases it considers minor, the commission delegates the decision-making to its staff.

In challenging Potter’s lease, the village argued that the deal was not in the public interest because, among other things, the loss of as many as 100 parking spaces would have a negative impact on its economy.

The commission also determined that the property, which has an original book value of $2,893, dating to its acquisition by National Grid’s predecessor in the mid-1800s, has appreciated significantly and, according to a 2019 appraisal, is now worth $1.975 million. Utilities are allowed to sell property without the commission’s permission, but only if it is valued at less than $100,000.

“One reason the proposed transfer requires further review to ensure the transaction is in the public interest is because the proposed transaction involves a parcel of real property with a significant increase in value,” the commission’s ruling stated.

Larocca called the original value of the property “ridiculously out of date” and said he was pleased that the full commission agreed to review the village’s case. “It’s an important step in that the village is getting a full hearing on what for us is a very important matter,” he said. “I feel very good about this step.”

The PSC also noted that of the 63 public comments submitted in the matter, 65 percent opposed awarding the lease to Potter.

Potter has also been attempting to convince the commission of the merits of his case. He submitted documents this week arguing that the village’s claim that a private entity cannot operate a parking lot is not true.

In a letter to the commission, he stated that the lot is needed to provide parking for “the first affordable/workforce housing development” in the village. “While Sag Harbor has a parking issue approximately two months a year, and mostly on summer weekends, the village and surrounding area has a critical need for affordable/workforce housing 12 months a year,” he wrote.

The commission said it would continue to accept comments at its website, dps.ny.gov, until March 6. Click on “Popular Searches” and enter case number 22-02220 under “Search by Case Number” to post a comment.