Oyster Bay agrees to pay more legal fees in land sale dispute

Oyster Bay has approved payment of up to $600,000 in additional fees to a law firm handling the proposed sale of its public works complex and other issues.

The town board Tuesday approved additional spending for Sinnreich, Kosakoff & Messina LLP of Central Islip, which the resolution noted has worked for the town on "various matters" since 2009. The resolution said the vote was required because "legal fees and disbursements have exceeded the previously authorized sum."

Previous resolutions authorized the town to pay Sinnreich up to $475,000 for matters unrelated to the sale, officials said.

Since the spring of 2012, the firm has been involved in negotiations with developers over the sale of the 54-acre Syosset public works complex, finalizing an agreement approved by the town board in May to sell the site to Oyster Bay Realty LLC for $32.5 million. The firm has also handled litigation over the sale by Taubman Centers Inc., the unsuccessful bidder.

For its legal work on all Oyster Bay matters, the firm billed the town $853,000 from 2009 through the end of June.

Of that amount, the $408,000 billed for the land sale has not been paid. The land sale billing includes $37,000 for negotiating with Oyster Bay Realty and $22,000 for negotiating with Taubman, which has forced an Aug. 20 referendum on the sale.

It also includes $195,000 spent to defend the town against a lawsuit on the sale brought by Taubman, which wants to build a mall on the adjacent former Cerro Wire site. The $408,000 also includes $137,000 paid to outside experts for surveys, engineering and other work related to the negotiations and sale but not litigation, town officials said.

Kyle Sklerov, spokesman for Long Island Jobs Now, the group formed by Taubman to push for the mall and fight the public works site sale, said "if the town had engaged in a proper bidding process from the outset, it could have reaped millions of dollars more for the land while avoiding these legal fees that reduce any profit it claims to be making."

Supervisor John Venditto blamed Taubman for the expense, saying, "for some nine months Taubman negotiated to buy the land, but only if the town would allow it to build a mall on the adjoining site."

Since Oyster Bay Realty has promised a mixed-use project supported by the town and community, "the sale will protect our quality of life and strengthen our finances. Nevertheless, disgruntled Taubman sued to block the sale, forcing the town to spend some $200,000 in legal fees."