Nassau moves to sell Island Park property at $2 million loss

Nassau County is moving to sell the property of the former Long Beach Motor Inn in Island Park to private developers at a $2 million loss after scrapping plans to build more than 90 units of affordable housing on the site. 

The county purchased the site for $3.6 million in 2017 after condemning it during the administration of former County Executive Edward Mangano.

Nassau County Executive Laura Curran, after gaining legislative approval last week, plans to sell the parcel to developers for $1.15 million. The developer, Patricia Abramson of Merrick, plans to create 18-22 rental units, with four to six — or 20 percent — set aside as affordable housing.

“The Long Beach Motor Inn is a seedy, rundown eyesore that is dragging down property values while not contributing anything to the tax rolls or the community," said Curran spokesman Michael Fricchione.

"The proposed development will help Nassau County cope with its housing crisis, which is marked by a disturbing shortage of available rental units," Fricchione said. "The developer plans to spend millions in private capital to gut-renovate the existing structure and offer dozens of quality affordable and fair market rental units while also fitting within the Town of Hempstead’s zoning restrictions.” 

The boarded-up, two-story concrete structure on Austin Boulevard was the focus of community opposition for years after complaints about activity by sex offenders and drug users there. 

County lawmakers also considered including the county-owned land in discussions to settle a 14-year-old lawsuit that charged Nassau with discriminating against minorities by not offering housing opportunities to people with low and moderate incomes.

Nonprofit affordable housing developers in 2004 sued the Village of Garden City and Nassau when village officials changed zoning laws to allegedly prevent the building of 311 affordable housing units at a 25-acre Social Services office complex in Garden City. 

Legislators and those involved in the final settlement of the case said the Island Park parcel was going to supplement a $3.5 million payment plaintiff MHANY Management Inc. Instead, the county paid more than $5.4 million to MHANY without providing the county-owned land in Island Park.

Nassau legislators on Monday night approved the property sale in an 11-8 vote, splitting along party lines. Curran can veto the resolution within 10 days of the vote, but that appears unlikely given that the push to sell the parcel originated in her office.

Officials said the county paid $3.6 million for the property. The owners had asked for $10 million, based on the "highest and best use," a common real estate measure of value, even though it was appraised post-Sandy for as little as $750,000.

Majority Republicans on the county Legislature say a large affordable housing development there would be out of character with the community and burden the Island Park schools. They support Curran's effort to sell off the property, arguing the county needs to cut its losses.

Curran administration officials said there were three bids on the property. The property has been off the county's tax rolls since June 2015, according to the administration.

But minority Democrats led by Legis. Siela Bynoe (D-Westbury) are raising concerns about the proposed sale. They question the $2 million loss to the county, and are asking why the property was suddenly dropped from any discussions about affordable housing in the county. 

Bynoe called the sale "a missed opportunity" to build housing for low and moderate income residents.

"This just seems like a loser for us," said Bynoe. "We purchased this property at $3.6 million and now we're selling it at $1.1 million. That was of concern for not only me but other members of the legislature as well."

"The county is going to need to clarify its position on developing affordable housing because far too often I'm finding that there are reasons that come up that properties in certain areas should be exempted from consideration," for affordable housing, Bynoe said.

Fred Brewington, one of the attorneys who represented plaintiffs MHANY Management, based in Brooklyn, and New York Communities for Change, based in Hempstead, in their fair housing lawsuits against the Village of Garden City and Nassau County, said he was "extremely disappointed" to hear about the sale of the property to private developers. 

"If this is the case — then shame on them. I'm asking the county executive to veto this bill," Brewington said. "I sure wish that when issues like this become important public questions that the affected and interested parties like MHANYS and New York Communities for Change would be contacted to make a better Nassau." 

County Legis. Denise Ford, a Long Beach Democrat who caucuses with Republicans and supports the sale, said she believed a 90-plus unit affordable housing complex at the site would not fall within Town of Hempstead zoning regulations. An influx of families would also have too great of an impact on the Island Park School District, Ford said. 

"I'm content with what we've done here," Ford said. "I have to watch out for the people I represent, too. I think this can be a good fix for them and I do think it can provide an opportunity for people to move into a neighborhood that maybe otherwise they wouldn't have lived in." 

By Candice Ferrette

candice.ferrette@newsday.comcandiceferrette

Candice Ferrette covers Nassau County government and politics on Long Island. She has been a reporter at Newsday since 2011.