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Golf club buyer says owners violated exclusivity clause in $4.4M sale

The Town of Oyster Bay has taken preliminary

The Town of Oyster Bay has taken preliminary steps to seize the Peninsula Golf Club through eminent domain after owner P.G.C. Holding Corp. declined the town's competing offer for the property in East Massapequa.  Credit: Morgan Campbell

A Florida businessman has alleged that the owner of the Peninsula Golf Club violated an exclusivity clause by negotiating with the Town of Oyster Bay over the $4.4 million sale of the property, according to a letter provided to Newsday.

Oyster Bay has taken preliminary steps to seize the property through eminent domain after owner P.G.C. Holding Corp. declined the town’s competing offer.

In an Aug. 13 letter to P.G.C. Holding, Richard Schaub Jr., president of Florida-based Great American Properties Inc., alleged that the owner violated a 30-day exclusivity clause in a letter of intent between the two parties that established the terms of a sale of the 50-acre golf course in East Massapequa.

Schaub alleged that P.G.C. had disclosed terms of the letter of intent to town officials during a 30-day period over most of May and part of June during which the parties had agreed not to discuss or negotiate with any other parties.

He called the disclosure an "egregious violation of the legally binding exclusivity agreement" and wrote in the letter that Great American Properties "will take any and every legal remedy to protect its interests."

P.G.C. Holding president Nicholas DeSibio declined to comment Monday and did not respond to a request for comment about Schaub’s letter.

The property has been protected from development for the past 75 years by a restrictive covenant imposed by Nassau County that requires the property remain a golf course only.

The letter of intent, which Schaub provided to Newsday, set the price at $4.4 million and partially met one of P.G.C. Holding’s conditions of the sale, allowing its 68 shareholders free morning Sunday tee times for five years. P.G.C. Holding had sought 10 years of free tee times.

Oyster Bay spokesman Brian Nevin said Tuesday that the town had been in discussions with the property owner, including a request to voluntarily rezone the property, but did not specify the time period. Schaub’s letter does not allege town officials did anything improper.

In a May 20 email to Sea Cliff resident Arthur Adelman, the town denied a Freedom of Information Law request for the town’s appraisal of the property on the grounds that "disclosure would impair present or imminent contract awards or negotiations."

In a May 24 interview with Newsday, town attorney Frank Scalera said Oyster Bay was in a "negotiation phase."

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