Sag Harbor Site Proposed for Condos and Park Has New Owner

A proposed condo development on West Water Street and Ferry Road in Sag Harbor is now in the hands of a new owner.

Waterfront acreage on West Water Street and Ferry Road in Sag Harbor, long envisioned as the home of luxury condominiums and the John Steinbeck Waterfront Park, has been sold by Greystone Development to South Fork developer Jay Bialsky, his attorney, Tiffany Scarlato, confirmed Tuesday.

“We are working off the existing plan,” said Ms. Scarlato, a Sag Harbor attorney and a former member of the Sag Harbor Village Board of Trustees.

The sale closed on Thursday, April 19, said Ms. Scarlato. A sale price was not available as of press time. Ms. Scarlato added Mr. Bialsky hopes to present updated plans to village regulatory boards as early as June.

Ms. Scarlato added that Mr. Bialsky would like to move forward with plans to sell 1.25 acres of the 1.94-acre site to Southampton Town through its Community Preservation Fund (CPF), although details have yet to be worked out, she cautioned.

On Tuesday, Southampton Town Supervisor Jay Schneiderman said an offer to purchase the property through the CPF, with “several contingencies,” had been made and was accepted by Greystone Development. “We were waiting for a signed contract and never got a signed contract,” he said. “And now the property has apparently shifted hands.”

Mr. Schneiderman confirmed that he and town attorney James Burke had plans to meet with the new owner of the property. Ms. Scarlato said she and Mr. Bialsky would be meeting with Supervisor Schneiderman on Monday.

Representatives for Greystone Development were not immediately available for comment. The firm purchased ownership in the Ferry Road parcels from developers Michael Maidan and Emil Talel in 2015, picking up the 2 West Water Street parcel owned by Bruce Davis, the owner of 1-800-LAWYER, in April 2016 for $4.94 million.

Greystone Development ultimately agreed to subdivide the parcels, leaving 1.25 acres for a proposed John Steinbeck Waterfront Park — a concept conceived by village officials and designed by landscape architect Edmund Hollander.

The remaining acreage was proposed to include 13 luxury condominiums in a three-story, 36,564-square-foot building designed by architect Robert A.M. Stern, with an underground parking garage, rooftop pool, and 13 boat slips.

The Sag Harbor Planning Board completed its environmental review of the project in May 2017. The application moved on to the village’s zoning board of appeals, which began considering five hefty variances needed for the development to move forward in August 2017. After that initial August meeting, the application was tabled at the request of the applicant until December when it was removed from the ZBA agenda.

Condominiums were originally proposed for the Ferry Road site over a decade ago, when Mr. Maidan and Mr. Talel purchased the property in 2005 under the limited liability company, East End Ventures. At the time, Sag Harbor seemingly was the epicenter of luxury condominium development — both the 65-unit Watchcase condominiums in the former Bulova Watchcase Factory on Division Street, and the West Water Street condominiums, now known as Harbor’s Edge, were proposed at the same time as the now defunct Ferry Road condominium project that appears now to have a new lease on life.