Progress seen on old gas station site

For years, it was a knot that the village, county and state failed to unravel: an abandoned gas station in the heart of Amityville; an owner who either died or eluded officials; and liabilities, including liens and more than $500,000 in unpaid property taxes that scared off potential buyers.

Now, tentative progress is being made on problems surrounding the property at 344 Merrick Rd., with state officials in discussions with OK Petroleum, a former occupant, about payment of $248,631 in liens stemming from cleanup of a 1996 spill.

OK is "one of the only defendants that hadn't defaulted," a spokeswoman for the state attorney general's office said.

Village and state officials identified the property owner as RAI Realty, a company principally owned by Fred Dorfman. But they said they'd been unable to locate him and weren't sure he was alive. A 2002 court judgment against Dorfman for cleanup costs was never answered, and officials have not found other assets belonging to him, according to the attorney general's office.

Fred Dorfman is in fact alive, a former Long Island resident living in upstate New York. In 2009, according to records, he filed for bankruptcy.

In a brief phone interview, he said he'd never been contacted by Amityville, Suffolk County or the state about this case. He said he had no role in RAI Realty, but that his father, Daniel, was a partner in the company before his death, in 1985. He acknowledged being executor of his father's estate.

But Amityville Village attorney Bruce Kennedy said Fred Dorfman represented the company in business negotiations.

Government agencies are working to resolve the liens, which would be a significant step toward finding a new owner for the property, said Kennedy. A new owner would assume at least part responsibility for the back taxes, which haven't been paid in 14 years to the county and 17 years to the village.

"I've never encountered anything like this before," Kennedy said. "Usually when a property's got value, you have people who are anxious to get ownership."

But few buyers are likely to express interest until "we get to the point where the taxes and liens are equivalent to the fair market value of the property," he said, estimating the property is worth a quarter to a third of the claims against it.

Auto dealer Security Dodge, based on the other side of Merrick Road, has been storing vehicles on the property for years, village officials said.

Security Dodge has made improvements on the property, including demolishing a building and installing sidewalks, but it has not paid taxes on the site.

Dealership owner J.J. Vigorito said he would consider purchasing it if the lien and tax issues can be resolved.

"We're waiting for everybody to get to the table," he said. "We're trying to do the right thing."