Gyrodyne to sell 49 acres at Flowerfield Fairgrounds to nursing home developer

A subsidiary of Gyrodyne LLC has agreed to sell 49 acres of vacant land at the Flowerfield Fairgrounds property in St. James to the developer behind The Bristal Assisted Living facilities chain.

The subsidiary, GSD Flowerfield LLC, entered into a purchase and sale agreement with B2K Smithtown LLC, of Jericho. The transaction is expected to total $28.74 million, according to an announcement from Gyrodyne, which owns the entire 63-acre property.

B2K officials declined to comment on the sale or its plans for the land. But Gyrodyne's announcement made reference to an assisted living facility.

Gary Fitlin, Gyrodyne’s CEO, said in a statement the company had been evaluating potential uses for the property, and during that process, “it became clear that there is a meaningful need for assisted living facilities in the region, which also has a low traffic impact to the community.”

The property is primarily zoned light industrial, Newsday previously reported. Gyrodyne had previously pitched development of an assisted living facility and a hotel, as well as medical offices, on the property.

Fitlin said the agreement is “a significant milestone in the execution of our strategic plan.”

“We believe this transaction aligns with our commitment to maximize value for our shareholders. ... the proposed development will bring long-term value to the Smithtown community,” Fitlin said.

B2K has been involved with senior assisted living facilities for some time through its Bristal properties, which include 24 locations on Long Island and in Westchester and New Jersey, according to its website.

Fitlin said B2K’s proposed development will preserve more than 40% of the property as open space.

Gyrodyne officials did not respond to further requests for comment.

B2K Development has been behind projects such as a proposal for The Bristal Assisted Living facility in Westbury and The Breeze luxury rental complex in Long Beach, the latter of which opened last year.

The Flowerfield property has been the subject of a legal battle for the past several years.

Head of the Harbor Village and area residents sued the Town of Smithtown and the developer in April 2022 after the Smithtown planning board approved a preliminary proposal to subdivide the property into eight lots.

A Suffolk judge last October dismissed the lawsuit, ruling that the proposal complies with local zoning rules and Smithtown’s comprehensive plan. Civic group The Head of the Harbor Neighborhood Preservation Coalition appealed the ruling last December.

The coalition said in a statement last week that the agreement “states that the sale of the property can only move forward if Suffolk County approves Gyrodyne’s proposed sewage treatment plant and provides tax benefits that developer will request from the Suffolk County Industrial Development Agency.”

“Since the county has expressed support for the preservation of the property as open space, it is not clear that those conditions to finalize the sale can be met,” the statement read. “Hopefully, the [state] Department of Environmental Conservation and the Peconic Land Trust will continue working to preserve the property.”

The state DEC in June 2023 wrote a letter to Smithtown officials expressing its interest in acquiring the St. James property, which local conservation groups and proponents of preserving the property supported, Newsday previously reported.