The small town-owned property known in Montauk as Fort Pond House was pulled from the market on Tuesday by split vote of the East Hampton Town Board.
Democratic Councilman Peter Van Scoyoc made the motion to rescind the sale, which was seconded by Democratic Councilwoman Sylvia Overby. Republican Dominick Stanzione gave them the critical third vote.
Supervisor Bill Wilkinson and Councilwoman Theresa Quigley, both Republicans, voted no.
The nearly 4-acre property—described in a resolution as a community asset and resource of value to the people of East Hampton, as well as a meeting place for groups like the Boy Scouts of America—was closed in 2010, with the town citing safety violations at the building.
The Republicans had billed its sale as part of a plan to restore the town’s fiscal health.
Fort Pond House has been the subject of a lawsuit by community groups and residents who charged that its sale was illegal.
The board on Tuesday also approved, unanimously, a new, three-year agreement with LTV, the local public broadcasting channel.