Pay Attention

South Fork communities have a tendency toward parochialism, worrying mostly about matters within their own borders, but this is a moment for every town and village official, and even every hamlet resident, to pay close attention to a proposal in Sag Harbor Village. It should provoke contemplation and debate, because the issues it raises are not unique to Sag Harbor — they are likely to be coming soon to regulatory boards in every municipality.

Adam Potter, who chairs Friends of Bay Street, has led the effort to find a new home for the Sag Harbor theater, working with developer Stephen Ross on the purchase of the Water Street Shops property in 2020. Last year, Potter began a related development effort, acquiring parcels on Rose and Bridge streets, aiming to create new commercial space for the businesses that would be displaced when the new performing arts theater is built.

Sag Harbor Village, meanwhile, has laudably taken an aggressive stance when it comes to creating more affordable housing within its borders. It’s fair to say that Sag Harbor has hemorrhaged affordable living spaces in the past decade or two, creating none in the village to replace the apartments and small houses that have soared into a market well beyond the reach of most local workers.

Potter took note and now has pitched an ambitious plan to create 79 affordable apartments in addition to the ground-floor commercial spaces that drove the initial proposal on 1.44 acres. The Sag Harbor Village Board got its first official look at the drawings on Friday. Because Potter waited for the village to lay down some specifics for its affordable housing push, the new project lines up smartly with the goals the village has set.

It’s far too early to say whether this is a good or a bad thing for Sag Harbor — a lengthy review process is needed, and is coming. But the key point is that both officials and residents throughout the South Fork should be paying close attention to this process, because it is a template for what a true attempt to “solve” the affordable housing crisis will look like.

The two towns are working toward a November referendum on the creation of a Community Housing Fund, which would use a 0.5 percent transfer tax to fund affordable housing efforts locally. Should it be approved, it will generate millions of dollars toward the cause every year. Certainly, much of that money can be used to supplement homebuyers’ purchasing power, through innovative programs sharing the cost of buying a house or providing down payment assistance. But that alone won’t significantly address the need for workforce housing within communities here. There will need to be some construction as well.

A great deal of calculus goes into proposed new affordable housing. Attorney Tiffany Scarlato, who is representing Potter in this endeavor, warned the Sag Harbor Village Board that the developer struck “a very careful balance” with the size of this project — meaning the number of affordable units needed to make overall financial sense. This is not a new concept: Anytime a developer pitches an affordable housing project, the number of units is typically the crux of the debate, with opponents unfailingly seeking fewer.

But there are two points to consider. First, for developers, affordable housing is generally a risky proposition, financially, and always less attractive than luxury construction, especially here. It’s precisely why affordable housing doesn’t exist here: There is no incentive. That’s something that has to change.

Second, more affordable housing means … more affordable housing. It doesn’t all have to be in one place, or a few places. But there’s a convincing argument that if it’s going somewhere, it’s better for the community in 2022 to err on the side of more rather than less.

None of this is at all unique to Sag Harbor and the Potter proposal. Should the CHF be enacted, similar scenarios could — in reality, the goal is that they must — spring up in many neighborhoods, especially villages and hamlets ripe for “smart growth,” which puts affordable units near commercial centers and public transportation.

Look around: Southampton Village soon will be forced to decide how to redevelop the existing Stony Brook Southampton Hospital property when the facility moves to Shinnecock Hills in a few years, a blank canvas that could be painted in a variety of ways. Montauk, Westhampton Beach and Southampton all have active or planned sewer projects, which also create new opportunities for development. Hampton Bays is in the midst of a town study of how it might develop.

For more than 20 years, the default setting on public opinion has been “limit development.” That wasn’t a mistake — it’s why the South Fork remains a special place. But the pendulum swings, and it’s time for realism when it comes to the next decade, and creating places for local full-time families to live.

Pay attention to the discussion taking place in Sag Harbor in the coming months, because it’s a preview of what’s coming to your neighborhood next — and it could be a harbinger of the success or failure of this entire effort.