Former Greenport mayor proposes eminent domain to tackle vacant storefronts

Former Greenport mayor Dave Kapell urged the Village Board to consider seizing key commercial properties to combat rising vacancies — an idea current Mayor Kevin Stuessi called “intriguing, but costly to the taxpayers.”

Mr. Kapell — who served as mayor from 1994 to 2007 during a period of growth and redevelopment — made the proposal at the Village Board’s April 23 meeting, warning that a slowdown in commercial investment is eroding the village’s tax base and shifting more of the burden onto homeowners.

He referenced a 2023 commercial development moratorium and a “poorly planned rezoning of the commercial district that imposed great uncertainty and prohibited new development costs on new business development that have brought investment in downtown Greenport to a virtual standstill.”

Mr. Kapell pointed to several long-vacant properties, including the former Arcade Department Store — empty since 2017 — and 110 Front St. Another of the larger vacancies is 414 First St.

He said the village should consider acquiring one or more of the sites through eminent domain and redeveloping them with ground-floor retail and housing above.

“There is often opportunity in crisis, and I propose that such opportunity exists now,” Mr. Kapell said. “This board needs to confront reality head-on and make the difficult decisions necessary to protect Greenport as the special place it’s always been.”

Mr. Stuessi said the proposal warrants discussion but raised concerns about cost.

“Dave’s idea of using eminent domain for any of the three largest vacant properties in the village is intriguing, but costly to the taxpayers,” he said on Monday. “I would welcome continuing the conversation together with the BID and their ability to bond.”

Mr. Kapell’s proposal comes as several longtime businesses have closed in recent months, including Di Angela Leather Goods and Accessories, which shut its doors in December after nearly four decades. Kharmah, a longtime boutique on Main Street, and Tea and Tchotchkes also closed last year, while The Market closed on Jan. 31. 

“I recognize that this is a big proposal, and it’s fraught with controversy,” he said. “But that’s exactly what we need right now.”

Greenport Business Improvement District president Rich Vandenburgh also said the number of empty storefronts is beginning to shape perceptions of the village.

At an April 22 meeting at the Old Schoolhouse, business owners filled the room as BID officials outlined a plan to recruit tenants and market available space — part of a five-step effort to address vacancies, as previously reported by The Suffolk Times.

“This is not going to be an overnight thing; this is going to be a concerted effort for us to try to help change the narrative that Greenport is open for business,” Mr. Vandenburgh said. “We want to make sure that there’s a path for resolution of any questions or concerns they have, or any aspect of being in the village.”

One major change is the addition of Manhattan- and Garden City-based real estate giant Helmsley Spear, which will volunteer its services to help attract tenants, the company announced at the BID meeting. It plans to work with brokers and landlords to identify viable businesses for the village.

“The idea is to find out what people, really, are looking for,” said Helmsley Spear owner Kent Swig. “And with that information, coordinating with the BID, and then coming up with a business plan in order to help promote and activate the area here with tenants that would grow the area.”

Mr. Swig, who called Greenport the North Fork’s gem, said the firm is developing a marketing plan and has met with local brokers representing landlords with vacancies, as well as some who are not. They will also meet with property owners, he said.

David Sargoy, director of the firm’s commercial real estate division in Garden City, and broker Neil Ergezer outlined to the room of business owners and community members some ideas of shops they may look to bring in — or leave out.

The two said they will be looking at arts and crafts shops, child care centers, education-based businesses, wellness and fitness, artist studios and medical and urgent care.

“We wouldn’t bring in another coffee shop; we don’t want to compete with the other ones here,” Mr. Ergezer said. “We wouldn’t bring in other T-shirt shops, another brewery. We don’t want to cannibalize existing businesses here.”

Mr. Sargoy said Helmsley Spear offers a financing program that can provide 90% of the funding for companies that may want to purchase a spot in Greenport. 

Village officials said rent expectations remain a major obstacle.

“If you were to look at the majority of the buildings, that’s the issue,” Mr. Stuessi said at the BID meeting. “Either they want too much to sell it, or too much to lease it.”

The mayor pointed to a deal to bring in a bike shop that fell through because “the landlord did not move on $1,000 or $500 a month in rent.”

Rena Wilhelm, owner of The Weathered Barn on Front Street, said even a handful of vacancies can quickly affect perception.

“It only takes one customer pulling on a locked door to walk away saying nothing’s open,” she said.

She added that the focus should be on businesses committed to staying year-round.

“If we’re serious about sustainability and vitality, then we should be prioritizing businesses that are committed to being a part of this community, not just profiting from it,” Ms. Wilhelm said.