The Great Neck Arts Center’s executive committee has recommended that the arts center’s board approve the Town of North Hempstead’s offer to purchase the group’s Middle Neck Road headquarters, following a meeting with Town Supervisor Jon Kaiman.
The $800,000 deal, which would shore up the arts center’s finances, change its name to the “Gold Coast Arts Center” and expand its operations throughout the town, was for less than arts center Executive Director Regina Gil expected after the town’s original proposal, but was met with approval after Kaiman pitched it to the executive committee.
“Jon personally came to lay it before them,” Gil said. “We expect to move forward with the renaming, the rebranding and the concluding of this deal by the first of February [if it is approved by the full board].”
The town’s original offer, made public in October, was for North Hempstead’s Business and Tourism Development Corporation to purchase the arts center building using a $3.5 million bond to cover the mortgage and debt payments. The corporation would have used its own funds, without drawing on the town budget.
But the town discovered that using the corporation would have made the arts center building, which is tax exempt, subject to between $50,000 and $100,000 annually in property taxes – a substantial added cost that Kaiman said justified putting the deal on the taxpayers’ tab.
The executive board, Gil said, was skeptical at first.
“The initial reaction was dismay,” Gil said. “Suddenly we were faced with an $800,000 offer for a property that everybody knows was assessed at a higher value.”
Once Kaiman presented the plan and explained the non-monetary services the arts center would receive, the board came around, according to Gil.
“Nothing is a done deal until everything is in writing, but everyone is moving forward in good faith,” Gil said.
Kaiman told the Great Neck News earlier in December that the changes to deal would not affect the operations of the arts center.
“It doesn’t really change the relationship for them,” he said.
Gil said the arts center would be granted continued tenancy so long as it keeps providing its services, but she was not certain if the deal was for 30 years or in perpetuity.
The arts center’s executive committee meeting was attended by Gil, Kaiman, arts center Executive Vice President and Treasurer Ralph Heiman, Vice President Marc Katz, Vice President Dohn Schildkraut, recording secretary Michele Meiman and Executive Board members Jerry Sloan, Steve Markotiwz, Dohn Shildkraut and Shirley Romaine.
The final deal is subject to approval by the arts center’s full board, which will meet Jan. 16. North Hempstead authorized the purchase at a board meeting Tuesday, Dec. 11.
The arts center has suffered financial setbacks in recent years, with mortgage debt casting a shadow on its sustainability.
While nearly every peninsula village had historically contracted with the art center for its services, all except Great Neck Plaza, Great Neck Estate and Lake Success cancelled their support over the last several years, Gil said in an October interview.
