State, Trump reach deal on Jones Beach site

Construction of Donald Trump's proposed Jones Beach boardwalk catering hall and restaurant is expected to begin next year after the developer and state officials resolved a five-year impasse Friday.

The developer and state officials reached an agreement that settles three lawsuits and allows Trump on the Ocean to go forward after the project stalled when Trump had only dug the foundation after obtaining a state lease in 2006.

"The Trump on the Ocean project will create hundreds of jobs, provide a boost for Long Island's economy, and bring back a much-needed amenity to Jones Beach," state parks Commissioner Rose Harvey said in statement.

Trump added, "This is a settlement that is good for everybody . . . and will lead to the creation of the finest facility of its kind anywhere in the country."

The agreement between Trump and the state Office of Parks, Recreation and Historic Preservation calls for the developer to build and operate an 80,000-square-foot facility with a footprint of 38,560 square feet at the site of the former Boardwalk Restaurant at the Central Mall. The initial proposal in 2006 was for a 75,000-square-foot building.

Trump made a concession on the main issue of contention: the size and allowed uses of the basement located in a flood zone. He had wanted to place a kitchen and other work space below ground, which required a variance the state had refused to grant. That prompted him to sue. The compromise allows a 14,000-square-foot basement -- but only for storage, as allowed by the building code.

The state conceded on two other Trump demands: that it drop its insistence on collecting rent during the delays caused by litigation and restart his lease.

The public restaurant will face the ocean, with indoor and outdoor seating for more than 400. The catering areas could accommodate up to 1,250. The exterior will include stone and brick that reflect the park's historic architecture from the 1930s.

Trump on the Ocean Llc will invest more than $24 million in the facility; no state funding is involved.

Ron Lieberman, executive vice president for management and development for the Trump Organization, expects construction to begin by early next year and last up to two years.

The parks department and Trump will enter into a new 40-year lease for construction and operation of the facility, retaining all of the terms of the lease executed in 2006, officials said. Trump will make a yearly $200,000 base rent payment that will increase annually at the rate of the Consumer Price Index. Over 40 years, rent payments will total about $13 million, according to the state. In addition, Trump on the Ocean will pay the state a portion of its annual gross receipts, expected to total tens of millions. The new lease must be approved by the state comptroller.

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The most vocal supporter of the project, Rafe Lieber, executive director of the Alliance to Revitalize Jones Beach, said, "It's fantastic. We're no longer going to have a big ugly hole in the middle of one of the great jewels of Long Island."

But Patricia Friedman, the project's most ardent opponent, said the project is considerably larger and is more of a catering hall than the restaurant envisioned in the original lease. "There was no open bidding on this," she said. "They have to start the process over."

The Trump on the Ocean saga:

1936: First restaurant is built on site, at 19,363 square feet. Burns down in 1964.

1968: Replacement restaurant, at 49,800 square feet, is built. Demolished in March 2004.

January 2004: State parks department requests proposals for a replacement.

September 2006: Plans announced for Trump on the Ocean -- 75,000 square feet on a footprint of 37,291 square feet and height of 28 feet. Includes 26,710-square-foot basement with offices and kitchens.

December 2007: A state review board rejects variance for basement.

March 2008: Variance is denied a second time.

March 2008: Trump proposes two new plans quickly rejected by state: one 72,000 square feet, 43 feet high, on 37,700-square-foot footprint and no basement; the second is 81,200 square feet all at ground level with a height of 32 feet.

March 2008: Trump files lawsuits against the state seeking variance for basement and $500 million in damages.

June 29, 2012: Trump and state reach agreement on 80,000-square-foot building with 14,000-square-foot storage-only basement as allowed by building code. Restaurant will accommodate more than 400 people, catering areas up to 1,250. Trump's 40-year-lease will be restarted.