How they did it in Greenport

Take a depressed seaside village with lots of Old World charm and transform it into a revitalized North Fork destination that attracts youths, artists and new money. HOW THEY DID IT

In 1994, the village dismantled its police force, which a Suffolk grand jury report said had operated for years in "a grossly unprofessional manner," and passed law enforcement responsibility to Southold Town. That freed up nearly $1 million in the budget. "Once we did that we could spend the money on projects like Mitchell Park," said David Kapell, who served as mayor until 2007. And in 1997, Greenport sold its public water system to the Suffolk County Water Authority for $3.5 million - another cash source for downtown development.

After acquiring a 2.3-acre lot of the burned down Mitchell Restaurant in the center of downtown in the mid-1990s, the village board voted to sell bonds and got more than $700,000 in state grants to develop the property. Bank loans and Greenport's $225,000 reserve were also used to finance the $3-million project. The village spent $600,000 remediating toxic waste from the property - costs reimbursed 75 percent by the state. The state also gave $50,000 to help pay for a Mitchell Park design competition. A state grant of $305,000 paid half the cost of the park's skating rink.

Mitchell Park, with the rink, boardwalk, outdoor theater and a carousel, attracts more than 100,000 people each year, local officials say. It's the centerpiece of a downtown that now sports tony restaurants such as the Frisky Oyster, an expanded Greenporter Hotel, art galleries, high-end clothing, gift and cheese shops and antique stores.

Greenport also relied on its built-in advantages to lure projects like the Peconic Landing retirement community, including cheap electric rates - 13 cents a kilowatt hour vs. around 22 cents from LIPA, says Mayor David Nyce. It's also a transport hub: the Long Island Rail Road ends here; the ferry to New England is nearby; it's a stop for the Hampton Jitney bus line; and a ferry provides a link to Shelter Island and the Hamptons.

Part of its appeal to the artsy set followed a 1998 move to ease zoning restrictions to let artists live in second-floor lofts of commercial buildings.

Sacrifices also were made. During his tenure, Kapell made the difficult decision to remove a popular tall ship, the Regina Maris, from the waterfront because it was a safety hazard.

WHAT'S NEXT?

Mayor Nyce said city planners are looking to the future with the notion of maintaining affordability to keep diversity and attract more young people. One solution: opening up more residential zoning atop buildings on Front Street, where it's currently restricted to one side of the street.

Challenges still abound.

In 1980, the home vacancy rate in the village was 5 percent or less, Kapell says. In 2000, that number rose to close to 30 percent - a signal, he says, of the growing number of people who maintain second homes in the scenic village, many of whom don't winter there. Kapell explained that a 2006 local census found some 2,500 residents living in village homes (including immigrants) - 800 more than a 1980 census. But there are another roughly 1,000 who owned village homes but did not live in Greenport full time. Greenport's decision to rezone to encourage two-family conversions has helped the village absorb the population increase, though more people are squeezed into the existing home stock.

Even now, many shops are seasonal, choosing to close until late spring, when a summer influx fills municipal lots all over the village. The impact of the winter freeze was visible on Front Street last month. Five stores on the south side of the most visible part of downtown were shuttered. One announced its return in spring.