Southampton Town Board Approves Canoe Place Inn PDD Extension

The Southampton Town Board has extended the special zoning granted for the Canoe Place Inn redevelopment project in Hampton Bays for another two years.

The extension of the zone change—known as a planned development district, or PDD—that was unanimously approved on December 21 is expected to help clear the path for previously approved redevelopment along both banks of the Shinnecock Canal.

R Squared Development LLC, a division of Rechler Equity Partners LLC—the developer behind the project—plans to build 37 townhouses on the eastern side of the canal and restore the old Canoe Place Inn on the western side, creating a new 25-room inn. Additionally, the developer plans to build a 1,900-square-foot clubhouse and a 300-seat catering hall on the 5.6-acre property on the west side of the canal.

The PDD for the Canoe Place Inn was approved by the Town Board in January 2015, and set to expire on January 21, 2018, three years after its adoption. The law enacting the special zoning notes that one of its requirements is that the developer must begin “substantial building” before the law expires.

Prior to approving the extension at last month’s meeting, several members of the Town Board noted that the developers have “acted in good faith” on the original PDD, even though significant work has not yet started on either property.

“I think it’s time to allow this investment in Hampton Bays,” Town Supervisor Jay Schneiderman said.

Councilwoman Julie Lofstad added to that sentiment. “I believe they have, in good faith, moved forward with the project,” she said.

Some demolition and clearing work has been completed, but a May 2015 lawsuit filed by a group of homeowners called the “Shinnecock Neighbors,” who oppose the project, has hindered the developers, cousins Gregg and Mitchell Rechler, from securing the necessary Suffolk County Health Department and town building permits to move forward with any construction. Most of the complaints filed by the plaintiffs ultimately were dismissed by the courts this summer.

Several dozen people, including supporters and opponents of the renovation, converged at Town Hall prior to last month’s vote to share their opinions.

Adam Ortiz of Hampton Bays, who supports the project, stood at the podium during the public comment portion of the meeting to urge the Town Board to approve the extension, citing the tax benefit it would bring to the community.

The 37 townhouses are expected to have seasonal residents, meaning that they will pay taxes to the Hampton Bays School District without draining any school resources. They also will have limited use for governmental services, according to proponents.

But Dale Nichol of Shinnecock Hills expressed concern about the project before encouraging board members to deny the extension. She stated that the revitalization plans for the old Canoe Place Inn still won’t meet the hamlet’s “21st century needs” for tourism, especially when compared to other options, such as the addition of a high-end hotel or a timeshare community.

“I do not believe the Canoe Place Inn, as it’s currently proposed, will help Hampton Bays,” Ms. Nichol said.