Developer drops Harbor Isle condo plan

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      In May, Blue Island Development withdrew its application with the Town of Hempstead to rezone the property of the former Cibro Oil terminal in Harbor Isle. The company had sought to change the 11.6 acres of petroleum-contaminated property from industrial to residential use and build a 98-unit condo complex.
      In a letter addressed to residents dated May 21, Michael Posillico, a managing partner of Blue Island Development, wrote that the companyÕs decision to withdraw Òwas necessary to preserve the economic viability of Blue Island Development for current and future use of this property.Ó The letter followed another, written to residents by Blue Island on April 6, which addressed some who had suggested that the company build single-family homes instead of the condos. ÒBecause of the high cost of a residential standard clean up on this former oil terminal,Ó Posillico wrote, Òno such plan has or ever will be considered. Instead, the only option for this site is remediating it to an industrial level, which costs a fraction of the residential standard clean up ÉÓ
      This letter also addressed suggestions that there be further negotiations between Harbor Isle residents and Blue Island. Ò[O]ur negotiations have already taken place with the residents who attended the 10 community meetings that have been held in the past,Ó Posillico continued, Òand have resulted in a plan that is less than half of the permitted density in the CA zoning ÉÓ
      At a public hearing in March, some residents supported the condo development, while others requested that the developers build single-family, Cape-like homes instead. These residents expressed concern that the number of residents the condos would likely draw would substantially change the volume of traffic and the quiet nature of Harbor Isle.
      Some residents rejected any compromise with Blue Island, arguing that they wanted no development on the site, and others expressed concern that Blue Island would walk away and leave the property in its long-vacant, contaminated state.
      Posillico purchased the property in July 2000 on condition of a cleanup of the contaminated site, a responsibility left to Blue Island, since Cibro Oil, the previous owner for 40 years, went bankrupt during the mid-1980s and was thus excused from the cleanup.
      ÒWe are trying to figure out what [Posillico] is up to,Ó said Ed Mitchell, who lives on South Island Parkway directly across from the Blue Island property. ÒWe donÕt know what heÕs going to do.Ó
      ÒIÕm moving ahead with the property as an industrial site,Ó Posillico told the Herald. ÒItÕs an economic decision, not a zoning decision.Ó He said he has a wide variety of options for industrial use on the site, which can include the construction of buildings up to six stories tall. ÒAn industrial use is an excellent option for me,Ó he added.
      Residents claim that since pulling his application, Posillico has resorted to what they characterize as intimidation to get them to regard his proposal as more attractive and support it. They claim Blue Island took down slats from its chain-linked fence that conceal the property, allowed grass to grow high around the fence, piled mounds of dirt on the site and increased truck traffic there.
      ÒIt suggests to me that he is very much using intimidation tactics,Ó said Karen Monaco, a member of the Harbor Isle Preservation Network, a community group formed to oppose Blue IslandÕs condo proposal.
      Responding to such accusation, Posillico at first said, ÒOh, please.Ó He added, ÒThis isnÕt intimidation, this is what we do. WeÕre proceeding with the site for industrial use and with my obligation for cleanup.Ó
      While he said he had considerable support from residents to build the condos in Harbor Isle, Posillico said he withdrew his application because on the whole, the community and the town werenÕt motivated enough to support the project.
      He said he is focusing instead on developing 46 waterfront acres in Glen Cove, and various other projects. ÒI want to spend my time in a community that wants to develop,Ó Posillico said. ÒIÕm waiting four years to get an application for a site. That says to me theyÕre not very interested.Ó
      Angelo Balbo, another resident of South Island Parkway who lives directly across from the site, still supports having the condos built. ÒThe option we have is for the property to either stay the way it is or put the condos up,Ó Balbo said. ÒSingle-family homes are not an option. This is the manÕs property, and if he wants to put the condos up, he should be able to do it.Ó