Southampton seeks to buy Water Mill property for $11.6 million for preservation

Southampton Town is planning to spend $11.6 million to buy and tear down a waterfront home in Water Mill in the hopes of protecting wetlands and expanding access to Mecox Bay.

The proposal calls for the purchase of a 2.37-acre property on Flying Point Road using Community Preservation Fund money. The existing home would be demolished before closing under the terms of the contract, CPF Director Jacqueline Fenlon told Newsday.

“This is a very unique and rare opportunity where we can provide residents, and especially the Water Mill community, with some passive access to the water,” Fenlon said in an interview. The purchase would also prevent the property from being developed into a larger home, she added.

If approved by the town board, the deal would be the town's second purchase of a multimillion-dollar waterfront home for similar purposes.

In January, the town authorized the $25.8 million purchase of a three-story, 11-bedroom oceanfront home on Meadow Lane, an area nicknamed “Billionaire Lane.” That home is slated for demolition and conversion into a public beach access point. During that process, town board members asked Fenlon to prioritize purchasing waterfront properties for public access. 

The town has been working on a deal to acquire the Flying Point Road property since last year, Fenlon said. She said the property would offer access to Mecox Bay for nearby residents and envisioned the addition of kayak racks.

The parcel sits adjacent to county-owned land purchased for open space, Fenlon said. The purchase will further protect the waterfront from development.

The proposed purchase price exceeds the property’s assessed fair market value. According to the property's 2025 tax bill, the property was valued at about $7 million.

Fenlon said the higher price point is supported by independent appraisals and reflects the site’s development potential.

“This does have permits in place to build and be redeveloped into a much larger home. So, we wanted to take the opportunity before redevelopment was accomplished to be able to buy this property and making sure it's preserved for future generations.”

Fenlon said the owners obtained a permit in the spring from the town’s conservation board to redevelop the property with a two-story, 2,709-square-foot home. With a porch, deck and patio, the property's total footprint would exceed 3,700 square feet, she said.

There is currently a one-story, roughly 2,000-square-foot home there, she said. Under the contract, the seller must demolish the home before the town completes the purchase, Fenlon said.

The property is owned by 658 Flying Point LLC. Peter Marullo, an attorney representing the seller, did not immediately respond to a request for comment.

Money for the purchase would come from the Community Preservation Fund, which generates revenue for land preservation and water quality projects through a 2% real estate transfer tax. The fund can be used to purchase properties for a variety of purposes, including open-space and parkland preservation.

Southampton Town generates more CPF revenue than the other four East End towns that participate in the program. Since 1999, it has generated more than $1.3 billion, according to town records. The town generated $20.6 million for the fund in the first quarter of this year alone, according to the office of Assemb. Tommy John Schiavoni (D-Sag Harbor).