Saturday, June 21, 2008

Freedom of the Press?

As repressed sadists are supposed to become policemen or butchers so those with irrational fear of life become publishers.
--Cyril Connolly (1903 - 1974)



Fires have always been a big story in the Hamptons. In fact, during the 1970's, on the few channels that you could watch (there was no cable and only 3 stations that you could actually watch without going blind from the snow), fires were the main attraction. They still are. Since there weren't that many fires occurring locally, Connecticut channel 8 was a big hit in the 60's and 70's. Entertainment-wise, fires were the Hamptons version of Farmer Gray cartoons, in which mice interminably flowed from a kitchen faucet in television's first cartoon offerings.

But, this was no simple fire. Apparently, this was an attempted murder, suicide and fire that occurred at Len Conway's estate in Westhampton Beach. Conway is a hedge-fund, takeover celebrity with a large residence on Seafield Avenue. The information that could be gleaned has it that the couple living in the Conway estate guest house had a big fight, she was beaten nearly to death, the house was set afire and he ran away only to be found dead by his own hand nearby. Suffolk Police, Westhampton Village Police and even Southampton Town Police were on the scene.

Photos of the crime scene and interviews of the police were refused. No access was permitted and the Police would not allow Press to visit the site. It was so difficult to gain access that a real estate showing was interrupted. Of course, the Police Commissioner, Mayor Conrad Teller, was just re-elected. He's the former Police Chief of Westhampton Beach Village. No doubt he is feeling his oats after his win and residents can expect fewer solved crimes in the Village and less information from his office (if that is possible). There were three major robberies last winter in Westhampton Village that were never solved and the trend is clear. No doubt, he's decided, the best way to avoid any criticism, is to completely prevent any press coverage for any but the most complimentary reports from the non-existent neutral media in the Hamptons.

News anchor John Roland lost his bid for Village Trustee by two votes. Jim Kametler, his opponent, the police officer who nailed a possum in his backyard with five shots from his service revolver apparently still has the support of the local NRA contingent and the Police State mentality continues. Makes you wonder if Kametler knows the Quogue cop who shot a Latino for defending himself with a tree branch. Possums are even less likely to fight back.

Speaking of the Press, Suffolk Life, operated by Dave Wilmot, reportedly is shutting down the publication this coming week. It passed as a media source for decades which Wilmot used as a bully-pulpit for right wing law enforcement Republican enthusiasts. The success of the publication was based upon a Supreme Court ruling that mail recipients could not stop someone from mailing shit to you in the form of a newspaper -- if you didn't want it. While Wilmot, known as a heavy boozer who is arrogant and a little crazy, and who managed to intimidate his way into a level of modest importance, his reporters were basically lackeys who were told what to write. Few of them had any journalistic education but knew how to take orders from a drunk. "News" stories were dictated by people like Joe Lombardo of the Town Attorneys office when the object of a recent interview cooked up by the Town and Suffolk Life by Wilmot's "reporter" -- was created to support the phony propaganda plan to put landlords who rent property to Latinos out of business. Ridding the Town of either legal or illegal Latinos is big business now. With the economy about to go into the dumper, any competition is anathema -- even if no one wants the jobs that are left behind.

Wilmot turned down $4.5 million for a deal for the paper and his plant less than two years ago. The Media source who was interviewed thought Wilmot was nuts but the deal failed anyway. The most recent rumor has been that Lowe's wants the property for $10 million. However, lawsuits for defamation may eat into that substantially. That may not sit will with Wilmot, Jr., who was "Skip" Heaney's campaign manager in a failed bid to win another term as Supervisor of Southampton Town.

Wilmot, in his 70's, is said to be suffering from a heart condition, bleeding intestines, and has been in and out of the hospital. He is known as a right-winger and a right-to-lifer, whose personal predilections have never had anything to do with what was good for the masses or the paid-for political assassinations he promulgated for his politician friends in Suffolk Life. Rumor has it that he badgered and threatened anyone with his "pennysaver" if they were not a supporter; personal abortions had little to do with what was good for everyone else. He did favors for politicians in targeting enemies and in turn got deals on advertising as well as a long-term illegal tax abatement for his plant location in Riverhead -- which he proceeded to sublet for a nice income. No one in the County looked at it twice. No one wanted to screw with him, even while his "newspaper" screwed them.

One of the few news sources in the Hamptons that shows any respect for the truth, if there is such a thing in politics is Dean Spier, whose On the Beach Blog, talks about things that many local politicians would wish would go away. Especially, in Westhampton Beach Village. The other media source, Southampton Press, the newspaper of choice for Republican "News" has improved lately. It does do a little fact checking -- even when Linda Kabot, the Supervisor, Cheryl Kraft and David Betts of Code Enforcement "leaks" information to them after Marcus Stinchi, Chairman of the Republican Party approves it. But, they still do the right spin on any facts so that they are "neutral" on anything that the Republicans are embarrassed by -- gotta keep them ad dollars flowing.

Hamptons.com, a storefront operation out of Southampton which is strictly online has created a presence but is still a succubus. Its prime "writer," right now, Andrea Aurichio, is a real estate agent who passes herself off as a reporter while trying to make a living in real estate. Two professional endeavors that don't pay very well right now. While this online publication provides listings, it is known by residents as a site that will steer you in the wrong direction on news and has a high anti-Latino, anti-landlord stance -- in order to be popular enough to get ad dollars. They follow the Town of Southampton Republican party line -- meaning to not insult the Republicans, Town Attorneys, Town Board members, or Code Enforcement office at Town Hall. The operation is looking a little thin and may not be far behind Suffolk Life. Don't expect them to endorse Obama. Senator Craig or Mike Huckabee is more likely.

Tuesday, June 17, 2008

Poll Dancing

The people who cast the votes decide nothing. The people who count the votes decide everything.
-- Joseph Stalin (1879 - 1953)


Vote early and vote often.
-- Al Capone (1899 - 1947)



Two of the most contentious Village elections are being held this Friday in the Hamptons. They are the Southampton Village election for two of the Village Trustees – and in the Village of Westhampton Beach where two of the Trustees and the Mayor are up for re-election.
Generally, Village governments have four Trustees and a Mayor. The Town of Southampton, the government that controls the Town, which includes Villages and Hamlets within that township, has a Town Board of four members and a Supervisor. Incorporated Villages like the Village of Southampton and the Village of Westhampton Beach, have their own government and police force within the township but are also responsible to the Town on matters like taxation and political control.
Similarly, East Hampton Town and East Hampton Village have distinct governmental entities.

The election in Southampton Village has been more contentious lately because of the political antagonisms arising from various charges of corruption and pandering to the forces of development leveled at the local government in one of the Hamptons richest locations. To make matters worse, the problems among the rank and file of the Village police department have exacerbated the reputation of law enforcement personnel who rank among the highest paid police officers in the country. Within two years, a novice can top $100 grand if he or she tows the line. Many also have private security companies that augment that income.
Local taxpayers, of course, look askance at the shenanigans, when an on-duty police officer is double dipping – collecting a salary while working his own gig.

Christopher Broich is one of the candidates for the Trustee election this week. Broich is a former Southampton P.D. officer, who was dropped from the force when he blew the whistle on Southampton P.D. Chief Wilson -- who was caught double-dipping and also finding cushy security slots for his girlfriend on duty (like movie sets at $80/hr). Other officers expected the work that Wilson’s girlfriend was getting – because of their legitimate issues over seniority and experience. Of course, the boys weren’t always able to give Wilson the fealty he was getting from his girlfriend.

Contemplating some funny numbers, since the Village Clerk in some of these small villages is a political functionary counts the votes, Broich employed attorney George Guldi to even the playing field. Guldi, a successful attorney, is a former County Legislator who knows where the bones are all buried in local politics.
With close numbers, especially with regard to absentee ballots, the thought was – perhaps, the State Police would make better monitors of the election results than, say, the Southampton Police Department or the Suffolk County Police who are controlled by District Attorney Tom Spota.
There’s no secret that disallowing the dimpled Chad in Florida (not to mention entire groupings of votes) gave the election to George Bush in 2000. A phony count could do the same here.
Supreme Court Judge Whalen agreed and signed an order to show cause forcing the Village to be more circumspect.


In Westhampton Beach Village, former Police Chief and current Mayor Conrad Teller, supported by another police office Dan Kametler, and Toni-Jo Birk are running together against Tim Laube for Mayor and candidates for Village Trustee, John Roland and Elyse Richman.
While there is some mudslinging, the current crowd – Teller, Kametler and Birk have been conveniently hiding behind a thinly disguised two-pronged attempt to both attack the Jews over the eruv and accuse their adversaries of being anti-Semitic. While the lip-service supports the Jews, the planted Letters to the Editor in the media clearly show their real attitudes.

Essentially, the anti-Semitism has been carefully played because, of course, no one wants to be accused of wanting the Jews or the Synagogue out of town. In fact, the distortions that were promulgated over the positioning of a few pieces of black plastic on telephone poles got totally distorted. Issues of “separation of church and state” were disseminated sub Rosa, and rumors were spread that the Jews wanted all business to close on Saturdays.

Teller was quoted as being in favor of the eruv and attacking mayoral candidate Tim Laube for being anti-Semitic after Village Board meetings clearly showed the reverse -- when Teller was awake. Those who know Teller personally have laughingly appreciated his public "political" attitude toward Jews and his so-called campaign to support their religious rights while commenting that he is rabidly anti-Semitic in private.

What has been left out of all of this is the fact that the Synagogue had withdrawn the application weeks ago so that it is a non-issue.
What has remained of this is the fact that business in Westhampton Beach is evaporating and each Winter fewer and fewer businesses are able to remain open due to the lack of support from its government.
This winter, in addition to the lack of business, several robberies occurred and none of the crimes were ever solved. With a Mayor who was the former Chief of Police, there is also a serious question about his ability to protect its residents -- or, the tourists.

Laube wants to increase business and make Main Street a more viable place to shop. As the closest Hampton, considering the upward spiral of fuel, Westhampton Village is poised for a renaissance and should have leadership for the new century.
Teller wants to roll back the clock and allow more businesses to close and send the Jews packing. Forget the fact that Rabbi Schneier pushed for the Performing Arts Center and fostered the growth of family-oriented changes. Forget that the White House has an eruv. Forget that the utility poles are not public and are owned by Verizon. Forget that this is not a separation of church and state issue and makes the Village of Westhampton Beach look like a bunch of religious bigots and will lose in court if it is challenged – and forget that Mayor Teller voted for it despite his real feelings.

James Kametler, Teller’s Deputy Mayor, another former police officer, who is a trustee, wants to keep shooting his gun at animals in his backyard. He’s already been cited for discharging his weapon at a possum in his backyard and got the officer who was going to arrest him fired for making the report. Kametler shot the animal five times. Can you say “high on life” with a pistol? And, he’s so media savvy that he’s served a “cease and desist” order on a local blogger Dean Spier – someone who has criticized him severely. But, nothing compares to the anonymous reader comments to the Southampton Press website.
Tony-Jo Birk, a current trustee, wanted to help keep a local bar owned by Mayor Teller’s friend out of the line of sight of the East End Drug Task Force. So she and Teller visited D.A. Spota’s office together in order to get them to pull the detail out of Westhampton Beach Village for that reason. Drugs, what drugs?
The fact that a drug dealer was arrested last year selling at the Middle School by local police is one indication of the need for that Task Force.

Elyse Richman, a single mother who works hard and runs three small businesses in the Village, seems to be a threat to the two trustees she is challenging as well. Rather than allow a fair election, they managed to get her knocked off the ballot on an election law technicality.
To her credit she is running as a write-in candidate.
John Roland, the former T.V. anchor, whose wife is currently very ill, is also running against the entrenched anti-business crowd and is someone with a greater vision for this special little village.

As a final note on Hamptons politics, it is worth noting that Sally Pope, an attorney from Remsenburg, is running against Dan Russo, a former prosecutor and Republican appointment to the seat filled by Linda Kabot at the direction of the Republican Party. His moniker is “Puppy Eyes."
While Anna Throne-Holst, now controlled by the Republican thought machine had managed to take one of the seats as a Democrat, she quickly fit in. Apparently, according to sources, she and "Puppy Eyes" are an item -- keeping the Board fully Republican in more than spirit.
While Pope is challenging Russo, Andrea Schiavoni is challenging DeMayo for Justice of the Town Court.
DeMayo is known for his role in signing all of the unconstitutional search warrants that have targeted only Latinos in the Town – as well as landlords who don’t want to wind up in jail or bankruptcy court for simply renting a house to those brown people who he would rather see living in the woods with their children.

Saturday, May 31, 2008

Hamptons Doom and Gloom

It is said that power corrupts, but actually it's more true that power attracts the corruptible. The sane are usually attracted by other things than power.
--David Brin

Money can't buy happiness, but neither can poverty.
--Leo Rosten

Despite the five dollar a gallon gas which has already hit Manhattan and the Hamptons, people still got their Porches, Volvos, Range Rovers and Lexus SUV’s on the road for Memorial Day weekend. In fact, even if gas goes to ten dollars a gallon, those who have a weekend home in the Hamptons will still party. There will be fewer parties and more car-pooling, but a hundred bucks for five people to get to the beach is not a deal killer.
What is a deal killer is $10 dollar gas and a cop hassling you about a rental permit. Or, visiting a gallery to look at a few pieces of art and have a glass of champagne – only to have the police barge in and bust the gallery owner.

The Hamptons IS Long Island. It’s where the money heads and where the money lands – it is the destination for Wall Streeters and their cash. Long Island is otherwise a large collection of communities, which, aside from the moronic ramblings of Dave Wilmot, the publisher of Suffolk Life who writes out of Riverhead and pontificates at the Hamptons (only because people can’t legally stop his pennysaver news from arriving in their mailbox), would sink without the tourist money. Wilmot’s suggestions, which are neither new nor his, are that Long Island becomes its own state. This emulates the ranting of an alcoholic in heat. Senator Craig was more eloquent when they picked him up after soliciting in a Men’s Room.
Even with the Republican Party, which Wilmot falls all over, trying to steal all of the Peconic Preservation Fund money, they still can’t make ends meet.
How would Chairman Stinchi, the Republicans in Southampton Town Hall and their flunkies in Code Enforcement and the Town Attorney’s Office function without their hands in the pockets of the tourists and the New Yorkers who pay their bills? Between fines, property taxes, fees and graft, a more serious downturn in real estate would be a disaster.
And, it’s on its way, guys.

But, the real travesty which is about to occur is the cost to the local men and women and their families who are suffering in the economy right now – and have a long way to go as this “non-recession” moves forward.
As the value of houses continue to fall in the middle-class and affordable range – from $500,000 to $900,000 (having arrived at that level by the double-digit gains of the last few years), the cost of food, fuel and medical costs are skyrocketing.

And, as another expert has stated simply:

“Falling home prices have made an increasing number of U.S. homeowners more vulnerable to default. Nearly a third of subprime borrowers owed more than their home was worth at the end of last year, and that figure will double to 63 percent in 2009, according to Credit Suisse.”

For those local residents who are retired or who are holding on in this dubious economy, no matter how irritating they find New Yorkers, things are about to get much worse while local government is moving forward with policies that assures more pain.
How does a local family with a breadwinner making $40,000 per year, or $800 per week, for example, with take-home pay of less than $600 per week pay for the escalating costs of health care and food – then pay $100 of that for gas just to get back and forth to work or run a business?

As the anti-Latino policy, which has risen to the level of institutional racism in the Town of Southampton, fewer immigrants will be available to do menial work. There will be fewer landscapers, cleaning people, laborers and dishwashers. But, there will also be fewer tenants, customers, workers and staff to keep people in business. The brown kid who did errands cheaply will be gone. Local residents did not have that kind of work in mind when they moved to the Hamptons or when they retired and are having trouble paying their heating bills and gasoline bills.
So, the Michael Sendlenskis and Joe Lombardos of the Town Attorney’s Office as well
as the Code Enforcement officers from Cheryl Kraft’s Office – who have been empowered to use the courts to break into people’s houses to check for smoke detectors in order to terrorize immigrants -- will also have less to do.
Lay-offs will follow. And, lawsuits will follow those who engaged in Town-sanctioned illegal activities.
The right wing residents will have fewer immigrants to rail at. And, they won’t be able to drive their cars or buy food either. Bush has already seen to that.

One would think that the immigrant problem, which will disappear due to the failed economics of the Bush era, is a success story about to happen due to racism driven by the doctrine of Home Rule. Instead, it is the result of the downward spiral in our economy that will also hit the Hamptons very hard. It will hit this fall as gas prices, heating bill prices, food prices and medical expenses reach a crescendo just as the market drops.

People who were here illegally or legally are already leaving a sinking ship. Not because of excessive enforcement – but because there is no work. Businesses are failing and money is tight. It has nothing to do with politics.
Yet the mindless bureaucrats in Southampton Town Hall will think that they have done a good job – just before they get a pink slip.

Two years ago the SoHo Journal wrote about the financial crisis that was about to hit.
Now, what is about to happen is all over the news. It’s no longer a secret.
While the government IS still hiring, it’s highly specific. They need bank examiners to handle the coming wave of bank failures.

Here’s what’s going on.
The price of real estate is continuing to drop. In fact, last month single-family houses dropped unexpectedly during the one and only remaining selling season – the Spring Selling Season – revered by real estate brokers. That’s not happening.
The inventory of unsold homes is now rising again, the sub prime and prime mortgage defaults are increasing, foreclosures are rapidly increasing, and the inventory of unsold homes is at a record level – and INCREASING.

Of course, what this does is further reduce the value of any unsold homes. The merry-go-round continues.

“Wachovia guru: Good-bye progress on housing front
Good-bye progress on housing front! "We had been making some progress over late 2007 and into 2008 on the inventory level," says Adam York at Wachovia, "and we basically erased all of that this month" following the latest existing home sales report. He says mortgage rates are low but tighter lending standards are stopping would-be homeowners from buying. A spike in foreclosures is also adding to the glut of unsold homes on the market, now at a 23-year high. York tells John Wordock he sees no housing bottom until later this year at the earliest.”

In the Hamptons, the upper level of properties is less affected. The middle range of homes is standing still. Sellers still have not budged, buyers are not moving.

And, even if there were some deals, there are no mortgages available. Only the government guaranteed mortgages up to the $400,000 range are available and even those are very difficult to close. Credit of all kinds is continuing to dry up.

In the midst of all of this, the Town of Southampton is engaged in a witch-hunt to punish landlords for having rented to immigrants when it is their job to police. Landlords cannot legally enter a tenant’s home without the fear of being arrested and the courts take months to evict anyone in a “holdover” action – which relates to tenant caused problems that is not related to payment of rent. Yet, the Town uses this to criminalize landlords for conditions beyond their control.
Rather than adopt a sane, logical method in dealing with a housing stock that is inadequate even for local residents, they have resorted to political targeting.

So, as the economic crisis moves forward, Southampton has adopted a Police State mentality. The only method that is known in these, here, parts.
Too lazy and too cheap to employ code inspectors who send out notices to correct violations, they have moved from Village and Town monitors to Enforcers who seek to criminalize every non-resident property owner. Added to this, they have sought to create a Rental Law that is merely a ruse for a new Immigration policy – a way to force landlords to reveal the names, addresses, and the immigration status of every tenant (only Latinos).
This policy will further add to the inventory of unsold homes, exacerbate the housing crisis by creating more foreclosures and vacant homes in what will become a blighted Hamptons.

Thursday, May 15, 2008

Political Notes

The secret of life is to appreciate the pleasure of being terribly, terribly deceived.
--Oscar Wilde (1854 - 1900)

The controversy over the eruv in Westhampton Beach Village is a delicate issue, which has been played out over the last several months. While Rabbi Schneier, of the Hamptons Synagogue and the New York Synagogue, was unable to be reached for comment, he is professedly apolitical. In prior discussions he has been clear about his disinterest in politics and political office for himself. Of course, that doesn’t mean that there are no political implications in Westhampton Beach Village for issues that he may embrace.

What is more obvious in this Village election year is that simmering anti-Semitism is on some people’s minds. When the Southampton Press actually editorializes against the possibility of anti-Semitism in this issue, it is tantamount to the right-wing Suffolk Life proposing abortion rights and support of illegal immigrants. Most of the East End “media” has ignored the realities of racism and discrimination and the agenda of the Town of Southampton (in which Westhampton Beach exists). But, even the Southampton Press realizes that New Yorkers, Jews and other minority voices have the capacity to expose the local economy to some unwelcome shocks in the future. Money is a big issue, ergo eruv.

While the radical right press, like Suffolk Life, (Pennysaver News in disguise) is operated by a racist who panders to the political right wing while existing in a closet of unpleasant and contradictory values – the Hamptons will ultimately come of age and join responsible citizens, possibly even Liberals. The raison d’etre for “Such-is-Life” is to lie for the Republicans in order to attack their political enemies in print. That’s what brings in advertising. Wilmot Jr. was Republican “Skip” Heaney’s campaign manager and current “reporters” are routinely used to provide “news” tips by Southampton Town officials who wish to target political enemies, Jews, Gays, Blacks and Latinos in this dubious forum of one-sided puffery.
Personal misadventures by its publisher Dave Wilmot, with current and former politicians, including former D.A. Catterson, a local bar owner, are widely known and discussed among locals in the Hamptons. Tax breaks that make Suffolk Life marginally profitable were not meant to be used by private businesses but have never been fully discussed. The only reason that anyone ever sees the publication is because a court battle waged 20 years ago over free speech forced the publication into everyone’s mailbox along with the other mailer junk that everyone receives on the East End.
There is a large liberal community, however, which is disenfranchised but which carefully watches the hypocritical confabulations of these dinosaurs. Even the media war waged against immigrants and those who would treat them as human beings have been tempered by the claim by some that the very same people who are attacked and reviled, populate the Suffolk Life pressroom. The Republican Party in Southampton also used immigrants to erect campaign signs. Why does Senator Craig keep coming to mind?

The eruv has been described as a black strip of PVC (annoying environmentalists possibly) and stimulating closet anti-Semites.
The gossip was that people were going to have to give up property rights and allow “those people” to cross private property, that stakes would be planted on Village property to create a path, and that the local businesses were being pressured to close on Saturdays, the Sabbath.
One person stated that it was outrageous and that there is a separation of church and state and this is a gross violation of that principal.

Even the Southampton Press, disabused people of the notion that these black plastic strips were an invasion of public property. Verizon owns the telephone poles where these strips would be located.
And, would such reasoning require that the Village stop the practice of placing Christmas ornaments on Village poles during Christmastime? Jewish residents have not suggested such a ban.

It is also not comforting that the current Mayor Teller dispatched police officers to inquire at every business in the Village – investigating whether the owner’s had been asked to closing on Saturdays. It appears to be a politically motivated act pandering to those with, shall we say, less than neutral opinions on the matter. Those who discriminate usually have a hard time hiding their true feelings since it always seems to leak out by their actions.
Considering the fact that within the last 6 months alone, Mayor Teller, a former police chief, has been unable to solve three major robberies in the Village of Westhampton Beach business district, it would seem that his efforts would be better directed at solving a crime wave rather than investigating an anti-Semitic rumor. Even if it were true, one would have to ask, what role would the police play? Unless, of course, the message is that the Mayor wishes to “mould” public opinion by intimidation or the power of suggestion.

While the Westhampton Beach police are neutral players in this matter, a Mayor who was the police chief may be an anachronism in a more modern environment.
Teller’s platform of flipping back the calendar so that nothing but tumbleweed rolls down Main Street is reminiscent of Andy Griffith's reign. That may be attractive so some. But should the time come when residents cannot even buy a cup of coffee or a pastry on Main Street due to a lack of support for businesses or protection from a crime wave – there might be questions. It would be a pity if the Village business district were to be shuttered for all but the summer crowd.

Thursday, May 08, 2008

A Hamptons Dog and Pony Show

There is no safety in numbers, or in anything else.
--James Thurber

Absolute truth is a very rare and dangerous commodity in the context of professional journalism.
--Hunter S. Thompson

Before you consider renting or buying a house in the Hamptons, read this.
It is rather long but is instructive as to the method which the Town of Southampton is intent on using to abrogate your rights, as citizens and as property owners. It should alarm you and foster a decision about taking action. In response to this travesty of justice we are engaged in a new Civil Rights cause. Don’t come out on the wrong side of this injustice.



A few years ago, when Skip Heaney was running the Town of Southampton, a sting operation was arranged between the Police Department, the Code Enforcement’s “rubber-gun squad” and reporters from the Southampton Press. A spontaneous visit was organized, just as a photographer and reporter “happened by” from the Southampton Press to rouse a group of summer renters for creating an unsafe situation – at 6 a.m.
The real reason for the bust, of course, was the fact that Heaney lived in Hampton Bays, a sister community to East Quogue and it is the largest voting block in the Town of Southampton. So, to protect his voting base after they complained to him, Heaney arranged a little show for his constituents in the guise of protecting the Town from unruly rentals. Photos of wild-eyed twenty-something’s from Queens and Brooklyn rousted from their beds for not having proper garbage disposition and who were rumored to have been performing dubious acts of fraternization by the pool --appeared in the Southampton Press.

The show and subsequent press coverage did the trick. Even though there were laws pertaining to proper codes and enforcement were already on the books – this little show gave the Town the opportunity to dampen the real estate market and steer summer rentals away from the Hamptons. No additional money had to be spent to actually enforce laws and no additional enforcement personnel were needed. In effect, enforcing the laws by giving tenants or landlords notice to cure a problem – waiting a reasonable time for those situations to be solved – and taking legal action in due course if the notices were ignored – was completely sidestepped. The rental market was severely and negatively impacted for years after this but Heaney had strengthened his voting base. Neither New Yorkers as tenants or property owners were ever a concern for him or the Town. The fact that there was no real legal process for the tenants or the landlords; the fact that the Town would not enforce its own codes through proper notification and follow-up; and, the fact that it was a case of making landlords, not law enforcement, responsible for the acts of tenants – was irrelevant to the Republican government. That has not changed.

The Town of Southampton discovered the fact that property owners could be made to be responsible for any act of a tenant or even the shortcomings of the government. Most of the investors or landlords who own rental properties (owned by New Yorkers) have no right to affect legislation or operate within the local power grid. Through property taxes, the Community Preservation Fund (which is currently being raided by the local politicians to balance the books), and the infusion of cash from a real estate generated economy – New York interests have been completely ignored even though that money supports the entire economy. It has been a license to steal and give nothing back.
In fact, it has emboldened these politicians to increase pressure and reduce the influence of New Yorkers and others who pay for the existence of the local government. But, the question became: how do we create a palatable political basis for this? How do we deflect rational criticism from New Yorkers who do not have the right to vote; how do we make decisions whereby they pay the taxes and police the tenants while we control the property?

The answer has been -- criminalize the landlord.

And, this bizarre twist of logic and the law has been extremely helpful in advancing the cause of the current anti-Latino policy – the popular local politicians’ response to the lack of a national immigration policy. It has been codified and buried in a new Rental Permit Law.
Skip Heaney, Linda Kabot and Pat Nuzzi advertised this housing ploy, calculated to create a local immigration policy, in Suffolk Life about two years ago when they were political running mates. The political campaign ads clearly explained to the voters that housing, the schools and employers would be the targets – through which they would get immigrants out of town.
The local press is hostage to the Republican Party (no cooperation, no advertising from businesses who are politically connected) and to the conservative voting base. Effectively, there is no independent media coverage. The government is free to create the news as it sees fit and it is free to lie to everyone.

Take the recent show that was broadly advertised by the Town in the local “media.”


A group of houses in the North Sea area of Southampton – a working-class location that was overbuilt – had been rented through management companies for the landlords. The management companies were completely responsible for the properties. Latinos occupied the new, spacious houses. In any other community, like Queens, where multi-family triplexes are legal, these would have been 3 large apartments in each house. But, Southampton has never permitted such properties in its code – whether they were new and safe or not. Affordable housing has always been the “big lie” in the Hamptons.
And, the law prevents landlords or brokers from discriminating against applicants based upon color, gender, race or national origin. Landlords are not the police. Although, the Town would now like to make them responsible for this function. It’s cheaper. And, fines bring in big money.
In this situation, the management companies rented the properties at various different times to individuals who portrayed themselves as families. The tenants themselves, recognizing the large spacious multi-bedroom floors in each new house, recognized its potential use. For people of modest means, the idea that new roomy apartments were somehow not legal defied logic in an area where there is a shortage of housing.
Over the last few years, several evictions took place when it became apparent that occupancy was not what was legally permitted despite the fact that each floor was spacious and very comfortable. In some cases it was discovered that basement areas were being used for living space or that unapproved, illegal construction was being done. Those tenants were asked to leave.

Landlords try to avoid Justice Court for evictions because the Southampton Town Justice Court judges only work one week per month on a rotational basis in Southampton Town. They make $60,000 per year for working less than 3 months a year. It is not uncommon for an attorney to have to wait for a month or two to get the assigned judge – back in court – if there is even one adjournment. That judge has to come back on rotation.
So, in a situation where there is a serious need to remove tenants who turn out to be NOT what they claim to be, there are few alternatives to legal action.
Of course, as landlords wait for the judges, the Town in its infinite wisdom can cite property owners for illegal conditions – while doing nothing to cooperate in removing the offenders. And, that is true whether the offending tenants are destroying the property or setting up an illegal rooming house. Code Enforcement has the luxury of sending notices to cure a problem and holding everyone responsible for their lack of oversight on a regular basis – even while the judges sit on their hands in any attempt to evict, or help a landlord’s management company solve a potentially dangerous situation.


Towards the end of last year, Code Enforcement decided to target these houses in North Sea because they fit the bill for the PR push to eliminate more Latinos, make the landlords responsible for their lack of oversight or enforcement of the laws on the books, and push the political agenda against property-owners by levying huge fines. It also was a good opportunity to reinforce the fact that multi-family housing, affordable housing, is not permitted. Unless, of course, you are local and have “auxiliary” apartments and – VOTE!

There were conditions that had to be remedied – and tenants were warned to rectify them. The tenants ignored these warnings and were evicted by the management company without the help of the court – completely legally.

The Town, however, having been made aware of the problems by neighbors who were less than thrilled with a rooming house -- had a perfect situation. New York landlords and Latinos in one happy PR opportunity. Here was a chance to show how the Town was concerned with tenant safety (especially for Latinos -- who they want out of the country) and set up a plan to criminalize property owners. Even better, they thought, perhaps they could even take the property.

Notices were sent by the Town to alert the management company about problems AFTER warrants were signed and executed in order to break into the properties. Apparently Judge DeMayo signs what is now the routine warrant-method of inspecting someone’s house. A letter requesting access to review possible violations might be the rule in any other Town. In Southampton, they don’t ask you if they can come in to your house at 5 a.m., they just break in, flash badges with guns drawn – and check for missing batteries in carbon monoxide detectors. A really big find is an extension cord. Oh, and by the way, they also take names and check for ZE PAPERZ.
Code Enforcement, police, immigration agents – all rolled into one – to check for smoke detector batteries. All to make sure the tenants are safe!
So, how stupid do they think we are? Are we the new “good Germans?”

No one claims that either the landlords or management were given any notice at all that they wanted to inspect the property.

Having learned about the overcrowding that was improperly occurring –– the landlords’ management company took affirmative actions.
Knowing that the Justice Court was slow and ineffectual, letters were sent to the tenants on the lease, management visited the houses to tell them they had to leave, and a real estate firm was hired to resolve the situation.

What you don’t do is simply force people with children out into the streets because while there is ample space it may not be part of the local codes as multi-family housing. Landlords, through management always have to follow the law. Towns and Code Enforcement don’t. They create the law and interpret it as they see fit.
Especially, in the Town of Southampton.

In this case they interpreted the law and then created the spin on what really happened.

After serving a warrant and conducting a search on the properties – all the while threatening the innocent occupants at 5 a.m. one morning, they went to work on management and landlords.
Paperwork accusing landlords of stacks of ostensible violations, many of which were building details approved by the Town when the builder obtained a certificate of occupancy. Stacks of “violations” were produced in court. They were produced long after the warrant-searches took place.

Then, there was the final coup de grace. A media show reminiscent of the Heaney event that occurred years ago was arranged. A circus was held which was intended to support all of the racism in disguise – as well as giving the Town support in utilizing their criminalizing of landlords-as-policy -- a shot in the arm.

One morning, a few weeks after the “searches” the Southampton Press arrived along with the online wannabe Hamptons.com representing the “media.”
Swarms of photographers, reporters, police, Code Enforcement, Town employees – all descended upon these “criminals” to handle the “eviction-by-intimidation” which was to be a show for voters and supporters of the Gestapo school of national immigration policy. They all were also trespassing, by the way.

But, a funny thing happened on the way to North Sea.

Nothing.

There was no one home. Not one person. Not a white person, not a child, not a Latino, no one. The houses were all totally vacant.
The management companies had arranged their own legal eviction that the courts or the Town had nothing to do with. Or, could not manage. After they became aware of the possible overcrowding – depending upon your view of affordable housing versus multi-family codes in this Towns. Safety violations are one thing. Overcrowding is a different thing. Is two people in each of 3 bedrooms overcrowding or an elitist view of the way everyone else should live?
In conjunction with the church, a nun by the name of Sister Briege who had the interests of these unfortunate immigrants at heart -- whose children are Americans – and who clean toilets and do landscaping for the swells in the Hamptons – resolved the situation. The management representing the landlords donated enough money, over ten thousand dollars, to their cause so that they could afford to move. They weren’t consigned to the streets or subjected to racism. They were treated as human beings and were provided with money to find alternative living circumstances. And, they willingly but reluctantly moved.

Even though these properties were being systematically destroyed by overcrowding which lined the pockets of a couple of their own compatriots, and even though they had caused the potentially dangerous circumstances that they were living in, they were still treated fairly.

After an investigation (not by the Town) it was learned that two Mexican nationals named Carlos and Serafin were unknowingly operating the houses as mini-hotels, but whether upwards of $50,000 per month was being collected by them -- as was being reported by the Town – is impossible to tell. Obviously, the Town Investigator, David Betts, did not bother to find out any of this. Police skills seem to dissipate when real work is needed.
And, the Town was not on mission to protect the landlords – OR the tenants. It was a PR mission.
What is very clear, however, is the fact that each of these $2 million dollar houses was being leased for $3500 and $4500 per month (less than they cost) -- to people who originally represented that they were a family, and then gradually imported more paying tenants were enriching the illegal operators. Since the cost of each house was in excess of $10,000 per month, both the landlords and the management companies were losing money, while the Town was benefiting from subsidized housing. The Town just didn’t want the tenants. They wanted to criminalize the landlords as part of their overall plan.
And, that plan is to deflect property owners away from obtaining the vote while furthering the racist policy by evicting Latinos from the Town of Southampton.

The damage to the property will cost hundreds of thousands of dollars.


The media description of what happened, of course, was altogether another story.

Hamptons.com was clearly the most egregious. This online attempt at newsgathering was not their first failure. They have a reputation for getting the facts wrong.
While the reporter, Andrea Aurichio, a real estate agent-cum-investigative reporter, described the interior of the houses correctly, most of the rest of her piece was false. If she described the property from inside, she was trespassing. If she was given the information, she was not reporting.
She described the fact that:

“Southampton Town officials recently took the property owners to court
seeking an order compelling the landlords to evict a total of 70 tenants, including 20 children, from the four houses.”

Of course, that was fictitious. The Town had nothing to do with getting the tenants out, unless terrorizing them counts. No such action was taken by the Town to get the tenants out – except by breaking and entering in at 5 am and interrogating them. Wouldn’t that make you feel unwanted, if not totally pissed off?

In December, Code Enforcement flunkies broke into the houses with no prior notice to anyone and THEN filed notices of violations.
No order to evict was ever presented to anyone. Not to the tenants, not to the owners, not to management.
But, this little news clip did have the effect of making it look the Town did do SOMETHING.

The article goes on to interview the new board members Russo and Throne-Holst – Dan Russo is reported to take credit for working the whole thing out with the church to protect the tenants from those big, bad, unresponsive landlords who had not even been notified. But, what would he have worked out?
According to Hamptons.com Russo worked with the church to find them a place to live and Throne-Holst makes comments about protecting tenants and how the Town had to do what the Town had to do. Which was nothing but harass everyone.
Linda Kabot, at a Town hearing over this imbroglio, heard testimony from a few local people who complained that the problem had been going on for 3 years. Well, since they ALL LOOK ALIKE, clearly the neighbors did not know that the same people did not live there for 3 years.

Hamptons.com reported falsely and the Town Board members handed out misinformation. Was this lying? Convenient stupidity? Or, perhaps, it was an organized agenda?

In fact, what really happened was that a real estate company was hired to negotiate for the landlords, negotiate with Sister Briege, and negotiate directly with the tenants -- to donate the money to them for their safe exit and they were helped in securing new places to live. Is Russo claiming to have done this?
Dan Russo did nothing, the Town did nothing, and Throne-Holst, it is to be hoped – was merely duped into believing that somebody in the Town was doing something.

She was mistaken.

The reporter was simply incompetent. Not surprisingly, Hamptons.com refused to print comments to that effect on their website after being contacted. They did not respond to requests for an interview either.
The reporter bought the Town’s media play hook-line-and-sinker.
While they photographed some garbage that was left at one of the properties, she made no mention of the fact that a four-day clean-up had already been done prior to that by the management companies at a cost of several thousand dollars and that this was the remnants of the expensive job without any help from the Town. Of course, what remained was what was photographed.

What also was left out in the “news” was the fact that Sister Briege was interrogated by the Town – in an attempt to force her to give over the names of the tenants and where they had relocated to so that they could pursue them out of Town. Does that sound like their safety was of a primary concern? If he had arranged their safe relocation, wouldn’t Dan Russo know where they had moved to?

The reporter from Hamptons.com advertises her credentials as a former New York Times reporter – some 25 years ago – for lifestyle articles. We are reminded of Howell Raines’ demise and the firing of investigative reporter Jayson Blair at the Gray Lady, which occurred a few years ago. The similarities are glaring.

There was no fact checking by either the Southampton Press or Hamptons.com – none of the accusations were verified or reviewed for accuracy – and there was no attempt to contact anyone who might have shed some light on the true details. There was zero journalistic integrity or professionalism, just the following of marching orders from the Town.

The Southampton Press published the same content with a few different quotes but stated “The charges came just days after the Southampton Town Board ordered four houses on North Sea Road shut down after enforcement officers found health and safety code violations.”
Of course, that little report by Brian Bossetta is also false.
Only notices of violations were filed and served only after they broke in with warrants signed by the Justice Tom DeMayo anti-Latino machine.

This was managed by Town Hall. Joe Lombardo, the Town Attorney, in conjunction with Board Member Pat Nuzzi and Dan Russo, under the tutelage of Cheryl Kraft and her rubber gun squad, which handled the entire operation.
Linda Kabot, the new Supervisor, who’s aunt was the subject of one of these recent raids, took a back seat – but, allowed the Republican Party to plan it.
While Marcus Stinchi, the Republican Party Chairman, isn’t organized enough himself to plan this – having himself hired illegal immigrants to erect election signs for the party a few months ago – he has his hand on this in the background.

The name of this game is Targeting – Criminalizing – and Fines. Follow the money.

Anyone with remaining doubts about the primary motivation for
the Town’s recent push to check the safety of all of its housing need only consider some of the following facts:
Aside from the fact that that Heaney and Nuzzi advertised that they would be using housing safety as a method to enforce a local immigration policy, there is the unusual coincidence that only Latino tenants have been affected by the Code Enforcement break-ins a/k/a warrant searches authorized by Justice DeMayo.
We then have the additional curious matter that all local voters, EMS, Fire, Police and government personnel are exempt from having to pass any safety checks. Neither do they pay a fee for the new rental permits now required by anyone else for renting their properties or “illegal” apartments, nor are they targeted by impromptu inspections.

Can you imagine a retired Southampton cop with a rental apartment in his house being rousted at 5 a.m. by Town Code Enforcement for having a missing carbon monoxide alarm battery?

The ability to use the “safety” ploy to target political enemies, Latinos, and New Yorkers, is only in the beginning stages. It will get worse as the Town needs more money. Taxes are down, real estate is down, and foreclosures are up. In fact, The Town hopes to cash in with fines in order to bolster the waning budget. Even dipping into the Community Preservation Fund will not be enough.

If there was even the slightest doubt that Targeting and retaliation is what the safety issue is about consider the recent incident in Hampton Bays – which was NOT reported in the Southampton Press or on Hamptons.com.
A Code Enforcement officer who was drunk recently verbally abused a local woman in front of her house in Hampton Bays and he was screaming at her using derisive language about her national origin. You know, what the Town is claiming is not happening. She was not even a Latino.
The woman called the Town to complain about his abusive behavior and reported the incident, believing that she had rights.

The result: Code Enforcement visited her a few days later and her house was searched and numerous violations were issued – resulting in criminal summonses.
That’s Cheryl Kraft, Joe Lombardo, Michael Sendlenski, Chris Nuzzi, Dan Russo and David Betts and the Code Enforcement boys and girls – the new Storm Troopers. The jury is still out on Linda Kabot.

Latinos, Blacks, Jews, Gays, immigrants (legal or not) and New Yorkers -- beware. This is the new reality in the fabulous Hamptons. It’s not all Billy Joel, Christie Brinkley, Alec Baldwin, Seinfeld and other celebrities.

If the Town persists, under Cheryl Kraft and the new Town Board members, in trying to make landlords the enemy – and, unless they inspect EVERY house in the Town for violations – if they continue to criminalize landlords who merely make their property available for rent – they will all be hit by years of expensive litigation for selective enforcement and civil rights violations. The Town will be sued for the right to vote in local elections.
The local taxpayers will have to foot the bill for this irresponsible and unconstitutional behavior.

The Postscript to this little tale of the Town’s foray into racism and criminality is the fact that Joe Lombardo, the Town Attorney, weeks after the landlords evicted the tenants themselves – is attempting to take the property away from the owners with the aid of the court – to insure that no Latinos can ever occupy them again.

Even the King protected property rights in the Colonies.

Those rights were preserved in our Constitution.

This is America isn’t it?

Well, not quite. Welcome to Southampton.

Wednesday, April 16, 2008

The Southampton Shuffle

Every decent man is ashamed of the government he lives under.
--H. L. Mencken (1880 - 1956)

The intelligentsia of the Southampton Town prosecutor’s office known affectionately as the team of Lombardo and Sendlenski have been busy attempting to extort cash out of the newest class of criminals in the Town -- New York landlords and property owners.
With the advent of the new Rental Law - a thinly disguised set of guidelines intended to rid the area of those pesky Latinos (in the absence of a national immigration policy) and at the same time, transfer responsibility for enforcing laws from the police to landlords – a whole new situation, what a normal person would think is a con job, has evolved.

Take the recent scenarios that have erupted in the Town Justice Court.

The Code Enforcement boys arrange a complaint from a neighbor who is just thrilled about having a Latino living next door with their extended family.
An anonymous phone call to the local gendarmes complaining of, say, garbage, becomes the excuse (probably cause) for a full-blown investigation. As was popular with Hitler Youth, that garbage complaint becomes the ticket to arrive at the front door with guns drawn and badges flashing.
Who could refuse a visit from your friendly, local, law enforcement officer? Tell Sally to put her robe on and invite the boys in for a beer.

Of course, this humor pales when confronted with the new realities of the Justice Court. Joe Lombardo and his pal Michael Sendlenski, looking to make a name for themselves with the locals, have started to hone the good-cop, bad-cop routine to a level where Abbott and Costello would be envious.

What has been happening folks, are a few of the following realities. For one thing, the Town needs money. Mostly for more salaries to enforce the laws against New Yorkers and other riff-raff. Too many people seem to have gotten the idea that investments are welcome in the Town and that they, therefore, should have some say in who rules and how the game is played. So, taxes have been jacked up – just in time, it seems. The tax revenues were about to decrease, so while values drop, tax rates go up. As the values continue to drop, don’t look for the taxes to drop. This year’s increase in the Community Preservation Fund, the transfer tax paid on big-ticket purchases of real estate, may be a very serious disappointment next year. There was enough money to go around this year, and for the politicians to “borrow” from – but this may not be possible next year. This year’s take was based heavily upon the performance of real estate for the first two-thirds of 2007. That was when financing did exist.

But, what the Town has traditionally fallen back on for money is the good old formula of ripping off the New Yorkers. You know, that elephant in the room that pays for everyone to have a job in Town government but does NOT get to vote, Yet.
Fines, penalties, and criminal summonses do very nicely. It’s the meat and potatoes of the Town Justice Court. It’s gets those white New Yorkers all squirmy when the idea of traveling 100 miles to court with the possibility of being arrested for things like not having a number posted on your house or, say, renting your house to someone the Town doesn’t like.

That brings us to Latinos and Rental permits.

Recently, a couple of landlords were dragged into court by the vaudeville team of Sendlenski and Lombardo because they had rented a couple of properties to tenants that were immigrants. Their “Paperz” were not in order – and by the way, we found numerous violations in your houses and you have not obtained a rental permit with the names of the people living in these houses. And, by the way, are they here legally? Now, that's your job, not our job.
But, we are concerned because they are not safe. But, are they here legally?
How about you give us $5000? No, make that $10,000.
Yes, and what about jail time?
Well, give us the money and maybe we'll just give you Community Service. For renting your house.

Judge Burke, of course, a recently re-elected jurist who is tough on crime adjudicates many of these cases. Perhaps with tongue in cheek. How could you keep a straight face when there are real criminals wandering about and landlords are being arrested and criminalized?

So, how humorous is this situation? How does a New Yorker logically deal with such an obvious sham. The previous Supervisor "Skip" Heaney even published a campaign ad in Suffolk Life describing in detail how he planned to get rid of immigrants. The plan, when Heaney, Kabot and Nuzzi were running on a Republican ticket (before Heaney and Kabot broke up) was to intensively inspect houses that the Latinos were living in and use the safety issue as a means to criminalize landlords -- disguised as concern for the very people the Town wanted to vanish. Of course, no house can survive a safety inspection if the inspector is instructed to find problems.

While Sendlenski and Lombardo are busy shaking down the landlords, and while Supervisor Kabot is clucking over the extra $4 million sucked out of New Yorkers pockets from real estate transactions, Judge Burke’s kid is creating a new business.

Ed Burke, Jr. is advertising in the Republican Town organ, the Southampton Press, which passes as a newspaper, for his services – to advise those pesky landlords on how to get those Rental Permits. Whether the Rental Law is constitutional or not is immaterial.

In "House of Games," Joe Montegna described a "Tell" as the most successful way to figure out what was going on. You have to watch these characters in operation. Sit in on a Justice Court session. All of the players have their game down with each other.

And, just as John Cusack mistrusted Annette Benning and Angelica Huston in "The Grifters," watch the Town play out this "Long Con." In addition to the entire corrupt process from Town Investigator David Betts, to Fire Marshall Cheryl Kraft and her Code Enforcement boys and girls, to the Town Attorneys in Justice Court in front of Ed Burke and Tom DeMayo (who signs most of the anti-Latino search warrants) – there will now be a charade played out with beleaguered landlords represented by Burke, Jr., in front of his father. It is a system of corruption poorly disguised as a campaign to enforce safe housing that is feeding upon your wallet. Can you imagine that they want you to believe that they want safe housing for people that they really want to kill? Visit Quogue if you doubt that. The police shot an unarmed immigrant to death.
Where’s the U.S. Attorney when you really need him?

The South Bronx during the Civil Rights Movement was a safer place for New Yorkers.

Friday, April 04, 2008

The Other Shoe

Lack of money is the root of all evil.
-- George Bernard Shaw (1856 - 1950)

Now that Manhattan real estate has started to drop – both the number of sales and the dollar amounts – it is abundantly clear to all those who enjoy reading the tea leaves that we are in for a difficult few years. Real Estate Intel is that the condo market has already seen 15 to 20 percent drops in prices and that 30 percent reductions are in the future.
And, Hamptons brokers who tell you the truth describe the one remaining selling season that is left (there used to be spring and fall) as “quiet.” Some brokers have used the word “spooky.”

For the last few years, the SoHo Journal has been describing what was about to take place and we have now arrived at that point. But, the conflicting information emanating from Wall Street columnists leads some to believe that we are arriving near the bottom – both in stocks and bonds and real estate.
Don’t believe it. We are just at the beginning.
The people to listen to are not the gurus or the reporters or the brokers involved in the marketplace.
The people to listen to are the money guys. They’re scared.

What they know, they learn from talking to hedge fund managers, underwriters, investors, and banks. They know that there is a lot more pain to come in the real estate debacle – from write-downs and foreclosures – to massive layoffs on Wall Street. The workers who are laid off, incidentally, would be the people who buy condos in Manhattan and summer houses in the Hamptons.
And, the money guys also know that Europe is about to be hit as well.
How many people know, for example, that buyers in London typically could buy that Townhouse in the right neighborhood with 100% financing?
Germany is now having trouble – Deutche Bank just wrote off $7 Billion.
Switzerland’s UBS just wrote off $19 Billion. The Eastern bloc is not far behind and less well capitalized.
So much for the much-vaunted cheap dollar theory behind real estate sales in Manhattan and the Hamptons.

The most realistic prediction about where we are headed is a serious recession that could take 5 years to play out. The most pessimistic approaches a meltdown of 1929 proportions.
If there is not another MUB (monster under the bed) similar to the Bear Sterns bailout, the next 5 years may only be a severe recessionary period during which lots of people lose their jobs and their homes and cash is hard to come by.
If the economy becomes unhinged by a serious lack of cash worldwide, which could be precipitated by a bad bet in the shadow economy, which has a total leveraged debt of $516 Trillion dollars, – all bets are off.
Essentially, derivatives are bets whose ultimate payday is guaranteed only by the party holding the paper -- if you can figure it out.

So, as the party winds down, a few things will change substantially. There will be a severe shortage of cash, even the weakened dollar. There will be little mortgage money outside of Fanny Mae government paper with a limit of $550,000 (which gets you nothing in the Hamptons or Manhattan), and will replace the “liar loans” with the kind of loan application that the Feds can prosecute you for.
There will be substantially less in tax receipts. This will cause some Village, Town and County coffers to dry up to the tune of a Chapter 11 filing – lest you were thinking of buying some municipal bonds.

Prices for real estate will continue drop fueled by the lack of cash, the lack of mortgages and the lack of qualified buyers. Foreclosures will soar and vacant houses will grow, along with the number of properties on the remaining real estate broker’s listings.
While Towns and Villages in the Hamptons will continue to dip into the Community Preservation Fund, the tax base will continue to dry up. Even East Hampton Supervisor McGinty’s “loan” from that Fund, currently being investigated by D.A. Spota, will be looked upon as a necessary evil as municipalities start to go under.

The fact that the Town of Southampton has chosen to operate their racist immigrant witch hunt at this point in time – criminalizing landlords for renting houses to Guatemalans, Mexicans, Ecuadorians – will only exacerbate the problem in the Hamptons.
It will accelerate the rate of foreclosures, hasten a landscape of boarded up houses and force even more properties on an already bloated market. The Conservative Republicans will bring down an already damaged economy to satisfy a racist agenda.
The “Prime” borrowers who have been holding on in this real estate market will be pushed over the edge.
This has already been reported by brokers who complain that houses which were formerly only on the market for sale – are now also on the market for rent. And, the rental prices reflect the numbers needed to pay a mortgage -- not the realities of what people in the marketplace will pay. The new rental law, which is unconstitutional and racist, will fix the rest because the only tenants who can afford to rent (or who will actually pay once in the door) are the targets of the Town. They want Latinos gone and they want young people to go to New Jersey. The line of politicians dipping into the Preservation Fund will grow quickly.


For those of you who do not get any news in the Hamptons from the local media, there are a few election notes worthy of reporting.

George Motz is described as a Mayor running for re-election in Quogue.
What is left out of the crib notes by the Southampton Press reporter who did the original story when it was mistakenly covered and almost got him fired – is the fact that Mayor Motz was indicted for playing games with client money at his investment firm. According to the S.E.C. complaint, a little ploy called “ticket-switching,” was alleged. His wife is still the Quogue Justice Court Judge but they are rumored to be holding on to each other by a thread – partly due to the fact that he has a girlfriend.


Conrad Teller, Mayor of Westhampton Beach, known for wanting to keep the Village like a set for Mayberry RFD – replete with tumbleweed rolling down the street during the winter – is being challenged after his first term.
Currently one of the hottest issues defining his time in office is whether the religious people will be allowed to have markers in the Village allowing Orthodox Jews to benefit from placements that guide the path to the synagogue. Some Villagers have described the Mayor as someone who is anti-Semitic and during a recent Village Board meeting, derogatory comments were tolerated from the audience.
Some of the members of the audience decried the fact that allowing these ervuls would bring more Jews to the Village.
Well, hello, for a Village that is anti-business, wouldn’t that be a godsend?

The challengers are reportedly former newscaster John Roland, who lost by only 6 votes in the last election – and Mark Raynor, a retired police officer who is business friendly. One will run for Mayor and the other will run for a Trustee position.

Wednesday, March 05, 2008

Hamptons Economics 101

Do you mean to tell me, Katie Scarlett O'Hara, that Tara, that land doesn't mean anything to you? Why, land is the only thing in the world worth workin' for, worth fightin' for, worth dyin' for, because it's the only thing that lasts.
-- Gerald O’Hara (Gone with the Wind, 1939)


Do not pursue what is illusory - property and position: all that is gained at the expense of your nerves decade after decade and can be confiscated in one fell night.
--Alexander Solzhenitsyn (1918 - )




Only the most optimistic of real estate agents who is still paying off the new Range Rover purchased a year ago, would tell you that real estate is selling well in the Hamptons.
In fact, even at the height of the market as the bubble was forming, East End property agents bemoaned the disappearance of the historical two selling seasons – fall and spring.

No longer.

While not all areas have been affected similarly, East Hampton was an exception last year and Quogue to some extent this year. For the most part, there is now one season (March to May) during which some buying activity is really expected. Properties priced at up to $600,000 and listed for over $10,000,000 have buyers. Mortgages are as scarce as true Democratic politicians on the East End.

Most real estate brokers have a phrase to describe the current market: “It’s very quiet.”
There are lookers but the bidders automatically come in anywhere from 20 to 50 percent under the asking price. And, sellers are not budging. Yet.

Considering the fact that the Hamptons is a wealthy resort whose primary source of income is real estate, one would expect the local government to be supportive of that industry. It would be natural to expect that since property taxes from non-residents, transfer tax fees for property purchases, local durable goods orders, hard and soft costs involving the building and construction industry, and the thousands of small businesses that employ local labor – support the economy – that local government would do anything possible to create a net during what appears to be a long and difficult recession about to arrive. Not to mention the Community Preservation Fund – that big kitty where New Yorkers pay $60 to $100 million per year so that the local politicians can raid the piggy bank whenever they can’t find the money anywhere else. Recently, a meeting was held deciding whether the Fund needed to be raided again to buy a bowling alley or support some local salaries that they Villages and Towns can’t afford to pay for – with the local money they collect. It’s hit the Fund again – and Thank God for real estate.

It was in the 1970’s that the invincibility theory of Hamptons real estate first raised its freckled head. A charming, waspy broker by the name of Tilman Match actually carried around printed cards which he gave to prospective buyers that described the year upon year of consistent appreciation in home values. As most investment-oriented sales people, he described with clear certainty how real estate would appreciate while rentals would pay the cost of the financing. It was an investment that could not lose. With plenty of young families, students who rented in the winter months and young single people who rented houses in the summer, it was an investor’s haven. Even the local government counted on investment property so that they did not have to provide affordable housing for local people.

It was a mantra that was adopted by many brokers from Remsenburg to Southampton, from Water Mill to East Hampton and beyond.

In the late 1960’s, there were artists, professors and students in the winter, and families and single share houses in the summer. The Hamptons was an exciting, fun place all year long for different reasons. Sometimes desolate in winter, rarely crowded in the summer, it was part bohemian, part elegant, and part local character. In those years, the divide between local residents and the out of town population was more real. The locals were making lots of money and they put up with the annoyance from the summer people who arrived in May and left by September. Hence, Tumbleweed Tuesday – after the summer people left town.

As the values of property increased, so did the exclusivity pitch from brokers. As local people made more and more money – there were more and more local people. And, there were many more local builders who migrated from up the Island and developed cozy relationships with the Town government. Meaning – that a trend began which started the migration from New York City’s outer boroughs, Nassau County and New Jersey – to the Hamptons. The new local people, the new residents, were now many of the same people who spent vacation time and summers in the Hamptons because they saw the flow of money. And, that is where the change in essential Hamptons character started to change.

By the late 1980’s and early 1990’s, the Hamptons was no longer an enclave of farmers who considered someone a “local” if they hadn’t lived there for more than 70 years. The farmers sold their development rights to either a developer or the Land Trust and were now taking it easy. The big box stores had moved in – from Hampton Bays to Bridgehampton – and émigrés from up the island and the outer boroughs had made their way into local politics to try to wrest away some of the wealth. And, they succeeded.
Skip Heaney, the recent 3-term Supervisor of the Town of Southampton was brought in by his father who had a hardware store in Hampton Bays when he first ran for Town Board. Ask many of the civil service employees and local politicians how long they’ve lived in the Hamptons or when did their families move into town. Interesting confabulations will follow.

But, what this new crowd brought with them was not a love of the land. What they brought with them was a sense of entitlement, greed and a sense of escape. Greed for the money and greed for power. And many were escaping from scrutiny to an area of natural beauty and avoidance of accountability. They also brought the attitude of the “last one in” mentality – “Now that I’m here, I can do that but you’re not one of us, so you can’t do that!” That is the essence of Hamptons Politics. We were here first.

And, that leads directly to the current state of neo-conservative thinking, which has given rise to racism, conservative Republicanism, and an anti-“outsider” mentality.
It worked well when the investment came in and left without asserting any property or voting rights. But, as those who invested money started to stay for longer than a few months a year – asking for voting rights and demanding participation in the economic and political decisions – the government started to move even further to the right.
The question is, what will happen now that the flow of money starts to only trickle in.


The financial instruments of the real estate age have started to unwind. Whether they are CDO’s, SIV’s, credit-default swaps, short-term municipal paper auctions, bundled mortgage securities, or hedge funds trading in derivatives – trillions, not just billions are about to be lost. And, they will continue to be lost as The Great Real Estate bubble blows up. We are still only at the beginning of this slide.
This has affected investors, homebuyers, and local governments. Many expect some County governments to declare bankruptcy due to the fact that they cannot renegotiate debt at manageable rates while their tax receipts slow. California is borrowing heavily, New York is under water, and New York City is starting to tighten its belt. The Hamptons are raiding the Community Preservation Fund with the help of Fred Thiele.

As all of this is taking place, the Town of Southampton has increased its residential tax rate and is contemplating raising the commercial tax rate. The government has also embarked upon a much-hyped “Safety” program – using Code Enforcement under the direction of Cheryl Kraft and Michael Sendlenski of the Town Attorneys office – intended to rid the Town of Latinos. This Final Solution to rid the Town of Latinos is in progress under the guise of a new rental law and it is expected that the temporary “affordable housing program” which for decades has been left to private investors to solve for the Town -- will now be eliminated. What was sanctioned by the Town, so that the government did not have to make any investment, is now being dismantled to satisfy the neo-Con “last-in” mentality population of the Hamptons. Within two years, investment property and rental housing will be reduced as the need for affordable housing increases.

Most of the investment property in Southampton will now likely be sold – during a recession and during a severe housing shortage. Here are some of the numbers.

With about 6000 properties for sale on the South Fork of Long Island, during the last quarter, only a handful of properties have sold in East Hampton. In Southampton, the average sale price between the end of 2006 and 2007 has dropped from $2.3 million to $753,000 – a drop of 67.7%.

The effect upon those who are just now considering selling their houses in the Hamptons is simple. With investment property about to be dumped on the market due to the racist policy being implemented by the Town of Southampton, with the independent downward spiral occurring in the real estate business, and with the reduction in tax receipts from the lack of sales (also severely reducing the Community Preservation tax income) – we are about to witness a perfect storm of financial distress.
Those who must sell will not be able to sell. Those who are unable to sell will have property whose value is less than the underlying mortgage – as has already happened to roughly 10% of all homes in America.
And, as that happens, more and more houses will sit on the market, vacant and unused.
The “safety” policy, used to evict Latinos under the guise of a local anti-immigrant policy will destroy investors, seniors, second homeowners and all other local homeowners that need to extract themselves from financial ruin.

Entire neighborhoods will be for sale and there will be no buyers.

This is the new Hamptons Economics.

So, if you are considering buying in the Hamptons, wait. Prices will be much better in another year or two. And, by that time the prices in Manhattan will have started to drop.

Wednesday, February 20, 2008

Hampton Tidbits

The illegal we do immediately. The unconstitutional takes a little longer.
-- Henry Kissinger, New York Times, Oct. 28, 1973

Republicans understand the importance of bondage between a mother and child.
-- Dan Quayle

While Cheryl Kraft’s Code Enforcement boys and girls are busy breaking and entering into local houses with a Justice Court warrant, guns drawn and badges flashing at 5 a.m. to check for smoke detectors, the Southampton Village Police department is conducting its own version of the Spanish Inquisition.
The criminalization of landlords marches forward along with the search for immigrants who would rather sleep in a bed rather than in the woods with their children. The Republicans have shown their humanistic side once again. They would like to institutionalize the Hamptons Witch Hunt to satisfy the bigoted faction of the local electorate and the Conservative wing of the party. Town Investigator David Betts (placed on probation by Supervisor Linda Kabot for the raid against her aunt) aided by Town Attorney Sendlenski have given Public Safety Chief Cheryl Kraft the shot in the arm she needed to give all 5 Code Enforcement officers that carte blanche to terrorize landlords and Latinos like Dirty Harry in a spaghetti western. The new rental law is widely known as the Hamptons Anti-Latino law. It is recognized as pure racism, sanctioned by the Republicans and supported by the Town Board. In addition to racism it is extortion.
All property owners in the Hamptons are now subjected to huge fines unless they rent to those people whom the Town wants. Otherwise, they find violations in your home and try to arrest you. It’s Pay, or we arrest you.

That’s the message to New Yorkers.

And, this week a few more Village police officers were forced to bite the dust in Southampton. That story is still unwinding and it’s not a pretty one.
The favors and corruption go deeper than people want to believe.
Officer Gallo was suspended as was dispatcher Ottati.
Aside from the tickets-to-ride – or, rather 1900 tickets to walk away from – there was also the issue of a D.A.’s investigation about the fact that Wilson was working security at Polo while on the books doing police work for the Village. All those recordings of people asking for tickets to disappear are starting to irritate people in Archives.
Apparently, the retaliation is still virulent.

It’s been an interesting week in this best of all possible world resorts.

We understand that Nancy Graboski is living up to her reputation as a reformer – or, is still so pissed off at her treatment by the Republican Party during the last election – that she is calling for an audit of the Town’s books. With the reportedly serious amounts of cash lying around – still available from the last budget – she’s wondering why this year’s budget needs to be increased. All kinds of rumors about Masterson’s Highway Department solicitations for contracts and Republican Party coffers have been making the rounds. An audit sounds like a really good idea.


The Quogue dynasty, with Chief Judge Kitrick Motz who is married to Mayor George Motz, there is a rumor that a Mr. Traeger is interested in challenging the indicted Mayor in the next election.
There is also word that there will be a separation of powers once the court proceedings get underway.
Makes you wonder why Linda Kabot, the new Supervisor of the Town of Southampton lives in Quogue. Although, we hear that while she is “local,” not many of the small businesses in that village see her in their shops.

There may be a challenge to Westhampton Beach Mayor Conrad Teller in the next election. The Village Board may also see some changes. The business community has been less than pleased with the fact that while many other Villages and Hamlets in the Hamptons have seen a surge in activity even during the winter months – Westhampton Beach looks like the Dust Bowl during the 1930’s. There is no plan to aid or increase business with people-friendly events and the current level of government stimulation towards progress is likely to include little more than sweeping the Tumbleweed off Main Street. The fake bricks edging the sidewalk don’t give visitors the sense that Tiffany will be opening up there soon either. That problem, the fake bricks, supposedly was brought in to the Village because a prior contractor did such a bad job that there were too many “trip and fall” lawsuits. So much for the concept of beautification.

The most expensive high-end rentals have already been taken in Easthampton while in this Village, 45 minutes closer to Manhattan, most of the businesses close up during the Winter due to lack of any activity. The real estate brokers have been able to count the number of transactions on one hand.
And, crime is up. The Police Department has been grappling with a series of masked-men breaking into local businesses. The burglars have been successfully robbing the businesses, which have chosen to remain open during the winter for the benefit of the Village – and the thieves, who have never been caught, have managed to carry away a substantial portion of what little income that the Village sees. It’s not a good combination. Is it Mayberry, here we come, minus the law enforcement? This is with a Mayor who was the Chief of Police before he was elected. What does that tell you?

Tuesday, February 05, 2008

Hot Buttons in the Hamptons


But thus do I counsel you, my friends: distrust all in whom the impulse to punish is powerful!
--Friedrich Nietzsche


A few issues in Southampton politics affect local residents as well as New Yorkers. A few of these issues will actually affect the quality of everyone’s lives. Like Immigration reform, the political makeover on the Town Board, and the face and quality of local law enforcement, several trends are underway that we need to know about.

Take some of the inside dope on law enforcement.
There have been ongoing mini-scandals in the Village of Southampton that would make the original series “Peyton Place” seem like a high school drama. Rumors about the “1900 tickets” that disappeared is not news – but certainly raises questions about how business as usual is done at the station house.
William Masterson, Highway Superintendent for the Town, for example is rumored to have been pissed off at having been given a speeding ticket at one point and made it a badge of honor that the ticket disappear. It disappeared. The Chief of Police at that time gave an order to turn that ticket over to him, or else. Masterson’s not the only character who wanted his way. it seems the Village Police became a virtual sieve for those who had connections within the department.
The tradition of making the department one’s little piggybank, especially for the Chief (currently Wilson) started to annoy some of the rank and file. The fact that Chief Wilson’s girlfriend, rumored to be Kimberly McMahon, was hired and paid $80/hour overtime – ahead of some of the other foot soldiers with rank and seniority – has not been appreciated. If the Chief is going to “work it” on the payroll, they at least want some of the others to get a better break.
Apparently, there was a lot of grief during a Jack Nicholson film when there was more than enough overtime for everyone.

One of the Sergeant’s, Christopher Broich, in fact, has file several charges with the EEOC over his treatment by Wilson over the parking tickets and other dubious behavior such as improper moonlighting. And, there are rumors regarding an officer named Cummings and PBA attorney Losquadro, both of whom reportedly have a mutual business relationship, and Chief Wilson. Is retaliation against a cop who is a whistleblower possible? Ask Broich, who apparently was asked to fix a few tickets – and wouldn’t.

The question is, with all of this special treatment for Police Department “friends” whose tickets disappear, $80/hour overtime with a base pay of $100 grand – exactly what kind of monster is Southampton Village cultivating?
Many of the Village Police have their own private security companies in addition to their regular police jobs so that the badge and gun are interchangeable depending upon whether you are on duty or not. There’s plenty of work in the Village of Southampton and apparently plenty of money around. Why corruption on top of that?
Or, as Gordon Gekko said in “Wall Street” – greed is good.

In Westhampton Beach Village, where a mini-crime wave has erupted, questions about the effectiveness of local government have been raised. One local establishment, Magic’s Pub, has been hit twice by robberies in less than three months. Security on the streets are so lacking that the thief walked out the front door with the safe in his arms and out another door with a couple of 40 inch widescreen TV’s like he was invisible. Another local pub, Kara’s, has also been hit. The Mayor, Conrad Teller, who was the former Police Chief, and the Village Board have been characterized as being disinterested in helping develop local businesses during the winter months – and if some improvement is not forthcoming – he and the Board will definitely get their way. Most businesses shut down in the winter due to lack of sales. If the crime doesn’t drop, the Big Chill will set in and no businesses at all will remain open. As it is, rumors abound that certain Village Trustees are acting like ex-officio Police Commissioners due to the lack of interest on the part of Mayor Teller. One resident commented that the Mayor would like to push Westhampton Beach back to the days of 'Mayberry RFD.'
Even in the South Bronx of the 1960’s when Fort Apache and the surrounding landscape resembled Berlin after World War II, at least some crimes got solved.


The riddle of the new Southampton Town Board is expected to be solved this week. With one open Board seat, after Linda Kabot was bumped up to Supervisor, the question is twofold. Who will the fourth Board member be? And, how will that Board member be chosen?
Fans of three-dimensional chess will learn to appreciate Southampton Town politics. In addition to the myriad number of “lines” on the ballot, there are variations in the way in which the selection process can go forward.

Currently, the Board is comprised of four slots for Board members and one for Supervisor. At the moment, Linda Kabot (Republican) is the Supervisor and there are three Board members (Chris Nuzzi, a Republican; Nancy Graboski, a Republican; Anna Throne-Holst, a Democrat).
While Jim Henry, the Democrat who challenged Kabot and lost by 57 votes, is expected to run for Supervisor in two years, the balance on the Board is still controlled by the Town Republican Committee – a conservative group of local people who are closely allied with the same graft and corruption attributed to the former Supervisor Skip Heaney and associates like Bill Masterson (the Highway Supervisor who hands out construction contracts in return for contributions to the party).

This brings us to the problem at hand.

The current dilemma for reformers like Throne-Holst, who faces three Republicans on the Board – is that there are few candidates to choose from.
Alex Gregor, who is an Independent and widely admired by the electorate – who almost single-handedly destroyed Skip Heaney’s career by depriving him of the Independent line – is a favorite among voters. However, the heat is on when he approaches the current members of the Board. He is a leader who likes to lead. The Board is looking for a team player – for their team.

It seems likely that the overwhelming majority of the Republican Board will hand the Board seat to Dan Russo – one of Heaney’s former running mates.
He is being pushed by the Republican Committee and this will likely be the kiss of death for reform in Southampton Town.

There is also the issue of appointment vs. special election.
Russo is likely to be appointed – a fact that the Republican Committee is counting on. Or, along with other candidates, a special election could be held. And, while there have been comments about the cost of such an election – the Board of Elections has basically said that there is no charge.
So, while the Republican Board is looking for an excuse to appoint – there should be no mistake about the fact that it is not going to save anyone any money.

If Russo is appointed, he must run this November.
If he were to win a special election, he would not have to run for election again until Kabot’s old term has expired. They are not the same dates. The implications in this, a heavily favored Democratic year, are clear. Still, there is the incumbency factor.
The warring parties can figure out the implications of that scenario.


Finally, on the immigration front little has happened. The new rental law, which was concocted in order to push the safety issue, has been debunked by one of the East End’s most influential publications – Suffolk Life. If a publication whose publisher, Dave Willmott, loaned his son to run Heaney’s election campaign isn’t plugged into the law, no one is.
Heaney ran on the anti-immigration, anti-Latino plank. He and Chris Nuzzi set the strategy and implemented it, using Garrett Swenson and Michael Sendlenski of the Town Attorney’s office – along with Cheryl Kraft (Head of Public Safety and Code Enforcement) and the “investigative” work of David Betts, in the newly created Town Investigator position.
One of their first targets, of course, was Linda Kabot’s aunt. The New York Times investigated the matter and as a result of Kabot's win, Swenson was fired and Betts is hanging by a thread. They haven’t gotten to Sendlenski yet – a kid who is trying to make a name for himself by threatening to jail landlords.

Remember that when you think about Southampton as a liberal resort area.
While New Yorkers pay for the government, the politicians have been using the money to try to hang them with it.

So, in a recent editorial in the catchy-titled opinion piece “Willmott and Why Not” the focus was the new rental law. He opines in his editorial that everyone is scratching their heads trying to figure out why the 6000 or so rental property owners have not filed for their permits.

Well, Hello?

Start by asking people (whose property you are demanding virtual control over) why they do not have the right to vote.

Ask why a law that is unconstitutional – prompting the ACLU to join the current Federal litigation against the Town over this usurping of property ownership -- was ever implemented.

Or, perhaps, should we mention that the rental applications are USED TO TARGET OWNERS for renting to summer people or Latinos.
Just ask Supervisor Kabot’s aunt.

Willmott goes on to say that, of course, local people who have apartments or additional rental units should be excluded from this law. After all, you have to keep them voting for the Republicans who fostered this law. No need to have the law apply to everyone.
It’s all about those nasty New Yorkers who make a fortune from real estate. AND, WHO ARE FILLING THE NEED FOR RENTALS IN THE ABSENCE OF AFFORDABLE HOUSING!

The essence of the editorial is the smoking gun of the Republican Party. There is absolutely no mention in this editorial about safety. The basis for this rental law, which is badly disguised discrimination against Latinos and property owners, was supposedly about safety. There is not a word in this editorial about housing safety.

It really about the money.
And, about political control – pandering to the local electorate while trying to control your property.