Politics & Government

Rye City Officials Approve $5.6M Sale of Lester's Building

The city will sell the building to a real estate investment company that promises it will not be made into a gas station.

The city council has agreed sell the current Lester’s building to 1037 Boston Post Road, LLC (Bill Wolf Petroleum Corporation) for $5.6 million. Despite the buyer’s company name, it is no longer in the service station business and promised the council the building would be renovated and would be home to a high-end retail store.

“A Lester’s or better,” Adam Ball of Bill Wolf told the council.

The city council, under a previous administration, bought the 1037 Boston Post Rd. property in 2006 for $6.2 million with plans to convert it into a police station and court house. In 2010, the then-city council voted that plan down and decided to try to sell it in a tough real estate market. They were close to selling it to Lester’s owner last year for $3.6 million, but some council members and Rye residents argued the city could find a better deal. Last night, Mayor Douglas French thanked councilwoman Catherine Parker for convincing the council the building was worth more than $3.6 million, even in a depressed real estate market.

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The agreement includes an environmental contingency, city attorney Kristen Wilson said. Ball has completed the second phase of the review and is awaiting results, she said.

Rye resident Ted Carroll told the council that he overheard Ball speaking earlier acknowledging that he knew 1037 Boston Post Road was once a gas station.

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Carroll asked Ball what he would do if petroleum was found on the property, and if he would significantly reduce his purchase price. Ball said he would not walk away from the deal and would not drop the price significantly.

Councilwoman Parker asked Ball to clarify what his business is and confirm for the public that he will not be turning the property into a service station.

Bill Wolf Petroleum was established in 1965 and started with owning one service station in Brooklyn, Ball said. They now have 80 properties in the chain and have only sold two in the last 48 years.

“We invest, we stay, we redevelop,” Ball said.

Over the last ten years, they have essentially stopped building service stations and buying buildings no in service station industries.

The Purchase and Sale agreement also includes a 20-year renewable parking agreement that states the city can use up to 10 parking spots between 9 a.m. and 12 p.m. Monday through Fridays, excluding national holidays.

The council vote 6-0 to approve the city manager to enter into a Purchase and Sale agreement with Bill Wolf. Councilman Richard Filippi was absent. 

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