The Town of North Hempstead has changed the terms of its plan to pick up the mortgage of the financially strapped Great Neck Arts Center.
On Tuesday, the town board authorized Town of North Hempstead Supervisor Jon Kaiman to negotiate the purchase of the arts center’s Middle Neck Road headquarters for $800,000.
But in contrast to the deal made public in October, the town itself will pick up the tab, rather than its Business and Tourism Development Corporation – an entity that operates independent of the town’s general funds.
There’s a good reason for drawing from taxpayer funds to make the purchase, Kaiman said.
“When we followed the original proposal to its legal conclusion, we found that the local development corporation is not exempt from taxes,” Kaiman said.
Having the corporation buy the property would put it on the hook for between $50,000 and $100,000 per year, he said.
“It would be a mistake to take this not-for-profit and put it on the tax rolls,” Kaiman added.
The agreement is still subject to negotiations with the arts center’s board, which will put then it to a vote.
“We’re cautiously optimistic and enthusiastic,” said arts center Executive Director Regina Gil. “We’re profoundly grateful that this offer is being made, but we still have to look over the details.”
Kaiman said the changes to the deal will not affect the arts center, who under the plan will be granted a license to operate out of the building for $1 per year.
“It doesn’t really change the relationship for them,” he said.
The center will also benefit financially from in-kind services provided by the town once it owns the building, including legal and technical support, Kaiman said.
The resolution, passed by six to one vote with 6th District Councilwoman Dina De Giorgio (R-Port Washington) dissenting.
The town plans on taking out a 20-year bond on the $800,000 payment. While the development corporation had planned on taken out a $3.5 million bond to cover debt service payments, Kaiman said, annual payments would be worked into the town’s general budget.
The project is a good deal for taxpayers, Kaiman said. He said the building that houses the arts center is valued at $3 million, making the purchase a good value for the town because the town is looking to expand its presence on the Great Neck peninsula.
“We now have facilities in every area of the town except Great Neck, and Great Neck is almost one fifth of the town’s population,” Kaiman said.
As under the previous proposal, the new plan calls for the arts center to change its name to the Gold Coast Arts Center and work to expand its services throughout the Town of North Hempstead.
“The town will utilize the arts center… to grow the arts center throughout the entire town,” said Kaiman, citing the Gold Coast Film Festival as an example of successful cooperation between North Hempstead and the arts center.
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.
Gil said Tuesday Kaiman had demonstrated his commitment to preserving the arts.
“He has a broader plan… to restore the cultural luster the [Gold Coast] once possessed,” Gil said.
