A new set of potential buyers has made a multimillion pitch to purchase the former Star Room property on Montauk Highway in Wainscott, with hopes of razing the crumbling nightclub building and replacing it with a car wash.
People with knowledge of the deal said the would-be buyers are a different consortium from the businessmen who first brought the idea for a car wash at the property to the town in 2012. That deal fell through before the purchase could be completed and the property has remained on the market since, and is now in foreclosure.
The approximately 1.2 acre property is zoned for commercial highway business, which includes a car wash under allowable uses, though approvals would also be needed from the Suffolk County Health Department, because of the heavy water usage of such a business, and the state Department of Transportation.
On Saturday morning, Wainscott Citizens Advisory Committee co-chairman Rick DelMastro told board members that he has been told the latest offer for the property is $3.1 million, but that figure could not be confirmed. The property has been listed with Sotheby’s International Realty for $3.45 million.
Members of the Wainscott CAC discussed the renewed possibility of a car wash development at the property—and voiced their displeasure with the idea.
“Somebody is going to purchase this property with the understanding that they can build a car wash there,” Mr. DelMastro said. “It gives me a bad feeling.”
Mr. DelMastro suggested, if there is push-back against the project, perhaps the sale could be derailed.
Committee member Phil Young worried that a car wash could be expected to cause more traffic congestion than some other businesses that could be developed at the property.
The 2012 proposal for a car wash called for the residential East Gate Road to be used as the entrance and egress from the property to avoid tie-ups with the highway. This caused concern among Wainscott residents about new traffic on the narrow side street.
In February, a state judge issued a judgment of foreclosure against the property, awarding a $2.5 million lien to a mortgage company that financed the 2006 purchase of the property by Isha Kaushik, Vekrum Kaushik and Ena Kaushik and their company, Early Morning Entertainment.
For years the property was a combination restaurant and nightclub known as the Swamp/Annex before becoming the Star Room in the early 2000s. The club closed in 2007 and has since become an eyesore as the two buildings have crumbled and the once-bustling parking lot is overgrown with towering weeds.