Town of Oyster Bay considers $30M bond to back out of Cerro Wire property dealPosted: Updated:
The Town of Oyster Bay is considering a $30 million bond to back out of the former Cerro Wire property deal in Syosset.
The property along the Long Island Expressway has been debated for years.
The debate is over what should be built on the property, from a shopping mall or possibly mixed-use development.
Cerro's current owner, Simon Properties, had purchased the Town of Oyster Bay's Public Works facility next door to increase its size. But the town recently refused to turn over the property and now says it will pay back the $30 million it received.
“This is a win-win for our taxpayers,” Town of Oyster Bay Supervisor Joseph Saladino says.
But some don't see it as a win since the town will now have to borrow the $30 million at taxpayer expense.
Saladino says the sale was a bad deal and was negotiated by the previous administration.
Town officials say the money from Simon was used to pay off town debts.
Saladino says the best move for the town was to stay put because it could cost much more to build all new facilities somewhere else.
“And that was the impetus for making the right decision and putting our taxpayers first. It could cost $70 million to move even parts of this facility to other locations,” Saladino says.
Some residents however, are not happy that the town will have to borrow the money.
“Well, the town always ends up spending our money one way or another and we end up paying it again and again,” says Jericho resident Irene Wedekin.
The $30 million bond to pay back Simon for the property in the end could cost taxpayers as much as $40 million when interest is calculated in. But town officials say in the end it really shouldn't be that much money.
Saladino says he hopes to pay off the debt quickly using taxes generated from whatever will be built on Cerro site.
The Oyster Bay Town Board will vote on borrowing the money at Tueday night's meeting. The vote is expected to pass.
News 12 tried to contact Simon Properties for a comment but have not heard back.
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