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Shelter Island board adopts $2M bond authorization and authorizes bidding at foreclosure auction
Summary
On Jan. 13 the Town Board adopted a bond resolution authorizing up to $2,000,000 in bonds or bond anticipation notes for the acquisition of a School Street parcel and voted to authorize the supervisor or town attorney to bid at a foreclosure auction; the vote passed with a recorded dissent.
The Town of Shelter Island Board voted Jan. 13 to adopt a bond resolution authorizing the issuance of bonds or bond anticipation notes in an amount not to exceed $2,000,000 to finance the acquisition of a parcel at 2 School Street and approved a separate short resolution authorizing the supervisor or town attorney to bid at an upcoming foreclosure auction.
Supervisor Brock Williams, leading the meeting, told the board the $2,000,000 figure was chosen to give the town flexibility while it evaluates the property and financing options. "If we were to put out a bond for 2,000,000, the interest would be $72,000 which would be which would have a budget impact next year of point 6%," the supervisor said during the session, noting that converting to longer-term bonding later could lower annual debt service.
The resolution names the parcel by tax map and authorizes bond anticipation notes that may be renewed for up to five years. The board passed the narrower authorization to bid at the auction by voice vote and then adopted the bond resolution by supermajority; roll-call results in the transcript show Councilman Hamley and Councilman Dixon voted aye, Councilman McKesson voted nay and Supervisor Brock Williams voted aye.
Board members and residents pressed the town for additional details on costs and limits. The supervisor provided several financial estimates during the meeting, including examples of recent local interest rates and legal-cost ranges for BAN issuance versus full bond financing. Town staff also said the Community Preservation Fund currently has roughly $8,000,000 and could share costs for certain acquisitions.
Opponents urged caution. A public commenter criticized the timing and scope of the authorization, saying the board had moved before completing broader public engagement. "What you guys did is basically short circuit this whole process," one resident said, pressing the board to complete a facilities master plan and public hearings prior to substantial financing moves.
The board recessed after the votes and planned an executive session to discuss legal matters; the auction is scheduled to proceed separately and the town will determine next steps depending on whether it becomes the winning bidder.
