Suffolk County Will Choose New Beach Hut Vendors On March 16

Suffolk County is now in the market for a new vendor to replace the Beach Hut bar and concession chain after its co-owner defrauded the state and county out of millions of dollars in income and sales taxes over four years.

Frederick Marsilio of Nesconset, part-owner of at least four Beach Hut locations—including the one at Cupsogue Beach County Park—as well as Marchello’s Garden Grill in Smithtown, had to pay $1.1 million as restitution ordered in a January plea deal. The county cut its ties with the chain soon after.

Suffolk County Parks Commissioner Philip Berdolt said this week that the Meschutt Beach location in Hampton Bays also was previously owned by Mr. Marsilio, though that property is not listed on court documents.

Jason Elan, a spokesman for Suffolk County Executive Steve Bellone, explained that the county has severed ties with those who operate all six Beach Hut locations—including those not directly owned or co-owned by Mr. Marsilio—and is now seeking new vendors for each. Mr. Elan declined to explain what prompted the termination of the contracts.

Those interested in running the concession stands had up until March 1 to file proposals with the county. Mr. Berdolt said each location will be evaluated separately and that the winning bidders will be announced on Friday, March 16.

He noted that seven vendors applied to run the Cupsogue Beach concession stand, and another eight are looking to run the Meschutt Beach spot in Hampton Bays.

He added that the new contracts will be good for 10 years, though he would not disclose any current front-runners. “The evaluation process has just started and there are no decisions,” he wrote in a recent email.

The process has been reportedly marked by some anger from Suffolk County Comptroller John Kennedy—whose office discovered the fraud from an internal audit and has since cast blame on Mr. Bellone for not heading more rigorous oversight of the county’s Beach Hut operations.

Mr. Kennedy, who did not immediately return calls, reportedly wants a role in the vendor selection process.

Mr. Elan, Mr. Bellone’s spokesman, said he thinks that Mr. Kennedy is overstepping his bounds. “The comptroller is entitled to audit the procurement once it has been completed, but has no authority to interfere with the process while it is still under way,” he wrote in an email.