Mayor Questions Breakwater Yacht Club’s Lease

Posted on 14 January 2015

Breakwater Yacht Club

By Stephen J. Kotz

The future of the lease between the nonprofit Breakwater Yacht Club and Sag Harbor Village has been called into question by Mayor Brian Gilbride, who on Wednesday said he was concerned the village has not been generating enough revenue from the arrangement.

The club, which runs a number of community sailing programs, has been operating on a 20-year lease, which expires on May 31, but that lease allows the club to exercise an option to renew it for an additional 10 years. The club has already indicated to the village that it intends to exercise that option, but Mr. Gilbride said he wants to bring its board members to the table to discuss ways to make the arrangement more fair to village taxpayers.

“I’d certainly disagree that a 20-year lease with an automatic 10-year renewal was in the best interest of the village then or in its best interest now,” Mr. Gilbride said.  He said the club pays the village $3,000 a year now and would be paying $3,500 a year for the next 10 years unless the lease is modified.

Although the club sponsors a junior sailing program for children, hands out 20 to 30 scholarships for summer sailing programs and sponsors a high school sailing team, Mr. Gilbride said it also uses its clubhouse for private parties, yoga classes, and other events that generate significant revenue.

“Absolutely not,” Mr. Gilbride responded when asked if he wanted to evict the club. “If I was, that ship would have long sailed by now.”

The lease was a discussion item at Tuesday’s Village Board meeting, and the mayor and Bruce Tait, a member of the club’s board of directors, got into a testy exchange over whether the village had the right to negotiate any portion of the lease.

“We aren’t asking to renegotiate the lease. That’s not on the table,” Mr. Tait said. He added that the only way the village could get around the lease was if it could prove the club was violating the terms of the agreement or if it sought to take property through an eminent domain proceeding if it had a public use for the property.

At Tuesday’s meeting and again on Wednesday, Fred W. Thiele Jr., the board’s attorney, said he believed the club was in its rights to exercise the option as is.

When Mr. Tait continued to press his argument, Mr. Gilbride told him he was not helping matters. “Let me tell you something. I think you are wrong. Let me tell you a little more. I know you are wrong,” Mr. Gilbride told Mr. Tait. “So before you put Breakwater in hot water why don’t you stop right there.”

On Wednesday, Olaf Neubert, the club’s commodore, said he had not been informed that the lease was going to be on the board’s agenda this week. He added that he believed it was well within its rights to exercise the option. “There are no bells or whistles attached to it,” he said.

“It is clear we are part of the community,” continued Mr. Neubert, who stressed that the club is more of a community center than a private club. He said the club, which is designated as nonprofit by the Internal Revenue Service, passed a recent audit with flying colors.

He said he looked forward to discussing the lease and the club’s future with board members as soon as possible.

Bed and Breakfasts

A proposed code amendment sponsored by Trustee Sandra Schroeder that would provide for a way for bed and breakfast to be licensed by the village drew a sharp rebuke from Pierce Hance, a resident of Main Street.

Currently bed and breakfasts are allowed if the homeowner obtains a special exception permit. Ms. Schroeder proposed the change, she has said, because the village is aware some people are quietly renting a room or two and officials are most concerned about making sure they are safe.

“What we are doing is changing the code to accommodate people who are violating the code,” said Mr. Hance. Instead of legalizing the approximately 13 bed and breakfasts advertising online “why aren’t you just going to them and saying you are violating the code. Cease and desist.”

“This is effectively validating the commercialization of the R-20 zoning district,” added Mr. Hance.

Board members and Mr. Thiele said Mr. Hance was taking a far too narrow view of the proposed amendment, which will be the subject of a public hearing next month.

In other action, the board agreed, at the request of building inspector Tom Preiato to write to the owners of the Morpurgo House at 6 Union Street, informing them that that the property is unsafe and it must be secured and portions of it demolished. The property has been in a dilapidated condition for decades and only recently emerged from the depths of a murky mortgage fraud case.  On Wednesday, Mr. Preiato said the owners would have 30 days to meet the village’s demands, or it would undertake the work itself.

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13 Responses to “Mayor Questions Breakwater Yacht Club’s Lease”

  1. Bruce Tait says:

    Regarding the above article about Breakwater and Breakwater’s lease I feel a few things need to clarified :
    1. Breakwater is recognized by the IRS as a 501c3 tax exempt charitable organization. The BYC is audited every year and complies by the strict rules of a 501c3.
    2. As a 501c3 organization BYC is open to all who wish to join, there is no membership committee that screens application. All can join.
    3. The lease that BYC has with the village is for the land that building sits on and the underwater ground that the dock is above.
    4. BYC paid for the building and docks and maintains both. BYC has a 30 year mortgage with Bridgehampton National Bank. This was granted in part because of the “Community Redevelopment Act” and because we are a 501c3 organization.
    5. BYC is involved in many areas; BYC sponsors the Wednesday night sailboat races; Sunday afternoon one design sailboat races, a few Saturday races and many other community events . BYC’s Jr. Sailing and High School Sailing programs remain the cornerstone of BYC’s activities.
    6. In the 25+ years that BYC has been running the Jr. Sailing Program thousands of our children have taken part in this program. One would be hard pressed to find a kid over nine years old in this village that has not taken part in this program. Of the many kids now taking lesson, their parents took lesson and may have been instructor!
    7. The current program is run as week long classes for beginner, intermediate and advance sailors, with many kids taking multiple weeks. BYC runs over 600 lesson weeks per summer. BYC hands out between 60 and 100 scholarships every year. BYC is the largest community sailing program on the east end.
    8. BYC is probably the largest employer of teenagers and young adults in the village.

    BYC fully complies with policies of the LWRP.

    I will more fully detail the activities and the benefits that BYC has provided the Village of Sag Harbor these past 25+ years in a letter to editor of this newspaper.

    If anyone wishes to discuss the activities and the benefits that BYC has provided the village please feel free to contact me at [email protected]

  2. Arnold Timer says:

    What’s up with our Mayor? He seems to like to throw his weight around while creating problems for individuals as well organizations. The BYC is the perfect tenant for the property in question and I can think of no other use which would provide more benefit to the community. I’m glad he hasn’t decided to evict them because as he said “That ship would already have sailed.” I find it ironic that he uses maritime cliches but seems to have little interest in promoting or preserving maritime businesses on the waterfront. Has he turned the yacht yard into a parking lot yet?

    Thank you Mr. Tait for defending the club both at the board meeting and in the press.

  3. RTR says:

    I think Mr. Gilbride should have heeded his own advice. There are ramifications to a public attempt to bully someone from his position.

  4. John Hovekamp says:

    So the Mayor pays no attention to his Board’s attorney??

  5. Jay Flanagan says:

    Of all the things the Mayor needs to be concerning himself with, he’s ruffling the feathers of a well oiled,wonderfully managed community run not-for-profit that readily accepts all comers? If you are sworn to serve the community, I can’t think of a better example of failure.

  6. Ellen says:

    Lets all look back 20 years ago and think from that frame of mind. As I recall there was GREAT delight in knowing that a NPO would be in that spot and be providing sailing lessons and working with the local youth etc. I miss living in Sag Harbor Village for a number or reasons and one of them is I’d SO love to vote the current Mayor out. He always sounds like a rude bully who has some agenda other than keeping SOME of the things that make Sag Harbor a wonderful village in place. Is the space worth more money? Sure. Would another tenant give the village residents and local youth as much benefit? Probably not. But none of that matters – monday morning Quarter Backers are annoying. The lease was done in good faith 20 years ago Mayor… deal with it.

  7. Mark says:

    More and more people are calling Mr.Gilbride is the Fidel Castro of Sag Harbor.
    A communist will always act according to the virus that infected him. Control and ideology
    is the driving force, not success and freedom. It’s time to fire these parasites.

  8. adesso says:

    I sure hope the yacht club stays put. it does sound like the mayor has no interest in replacing the YC with something else but he does want to know what amount of dinero the YC receives by renting the space to wedding parties, etc. is it a large amount and if so, is the city legally entitled to the proceeds? what is the annual operating cost of the YC and how much does the rental income offset their budget?
    would be in everyones interest to reveal the numbers and then let the community decide. I’m thinking this is one YC that deserves to stay and even make a profit from their rentals. some things are precious to the scale and vibe of the village and do not need to be a money maker. and the mayor does need to be more transparent when it comes to the YC and as well, the boat yard. (lou got a raw deal. like the village needs that space for something more relevant than boat stuff?)

  9. JB says:

    It wasn’t too long ago this Mayor attempted to evict Sag Harbor Rowing Club from the boat ramp in Redwood!
    To drive over the bridge and see a dozen children rowing the glassy water at sunset and watching the High School Sailors outside the breakwater is a beautiful sight.
    It’s local knowledge the Mayor has had an issue with the Breakwater and it stands in between the property where Sag Harbor Yacht was evicted and the waterfront. What’s their plan here?
    Bruce and many members over the years have passionatley worked thousands of volunteer hours to get our youth on the water. The Breakwater Yacht Club began in an old donated construction trailer on the Mobile grounds with a few little sailboats 25 years ago.
    Thank You Bruce for your past work as chairman of the Harbor Committee (until it was stripped by this board) and for not letting this mayor bully you. I think Mr. Gilbride should be the one in “hot water”.

  10. JT says:

    Adesso: the club has a lease, so unless that document provides for any revenue going to SH (other than the required rent) there’s nothing there for anyone to be concerned with. As Mr. Tait noted, they are audited annually and have a 30 year mortgage AND they own the building.
    No good deed goes unpunished when you have a little Castro like our Mayor bumbling about.

  11. Arnold Timer says:

    The BWYC should give the village nothing. The club is entitled to extend their lease for 10 years and the IRS has confirmed their status as a 501C3. Let the mayor pound sand. He’ll be long gone in 10 years when the lease legitimately needs to be renegotiated.

  12. sean s says:

    well, brian the bar room brawler,bullie,is at it again ! here is a mayor that has no connections to the water,except hasseling people that
    do enjoy it. the bully has had the byc on his list of people he wants to go after for many years. it has been heard for quite some time that he wasn’t happy with the existence of byc. how can a historic sailing
    village like this have a mayor with such a anti water attitude.dont forget…. the bullie,[mayor] is only one vote, and I think it will be the lone vote when the time comes. not the first,or last time the board votes against him… sail on byc !!


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