Even if inertia sometimes seems to be the default condition for local government, the accomplishment that is the Peconic Bay Community Preservation Fund (CPF) is no less remarkable at the 10th anniversary of its creation. It took a remarkable commitment, from elected officials and dedicated environmentalists, to get over numerous hurdles along the path to success, many that seemed too tall to clear. In each instance, proponents persevered, twisted arms and scratched backs, and made history.
First of all, there was a long lobbying effort to convince state legislators that critics in the statewide real estate industry were wrong: a two-percent tax on purchases, paid by the buyer, that would support the CPF in the five East End towns would not be a drag on the real estate market. It was a long battle, finally won in 1998. Months later, at least 70 percent of voters in each of the five towns that ring Peconic Bay said “yes” in separate referenda to create each town’s CPF.
It was providence that the five East End towns enacted the measure just in time for one of the region’s greatest real estate booms—although supporters did expect it and offered that as one reason to create the CPF in the first place. Even so, the superheated market dumped money into the program at a pace four or five times greater than projected, especially in Southampton and East Hampton towns. Both towns were able to make purchases when it was most important to do so.
If the program’s total revenue in the five East End towns over the past decade, some $500 million, were spread out as single dollar bills, they would cover almost 350 acres. Better yet, that money saved about 10,000 acres of open space and farmland in five towns.
The program’s success has sown some poisonous seeds. With that much money tucked away for future purchases, it wasn’t long before town officials began picking at the edges of the CPF rules as set by the State Legislature, trying to find ways to pry a few dollars loose for other purposes.
There are appropriate expenses, such as some personnel costs and a few dollars to maintain the land. But eventually entire salaries were covered, CPF purchases were used to buy a golf course and a troublesome nightclub, school districts were promised payments in lieu of property taxes (PILOTS), and one town, East Hampton, used its CPF to plug budgetary holes.
The lack of any real celebration to mark the 10th anniversary of the CPF program this year suggests it has some problems. It still enjoys wide support, having been extended twice by voters in all five towns. But the rules need to be reconsidered, and formalized—and the five towns, including East Hampton, have begun that process.
Ultimately, the rule of thumb should be that the CPF was designed from the start as a way to save open space and important community properties. That seems like stating the obvious, but clearly it isn’t, considering the myriad ways officials want to use the money. Should the town get into the business of saving, and running, the East Hampton Bowl? That’s pushing the envelope.
The CPF is assured of another 10 years, but its ongoing status as a successful, innovative, forward-thinking government program is in the hands of town officials. Some simple advice: Don’t mess it up.
on Jun 30, 2008