By JOHN HOWELL
Residents of Rocky Beach will get one more summer before the
29-acre property – part of the larger former Rocky Point Amusement
Park – gets developed into high-priced luxury condominiums.
Under the terms of an agreement between the beach association
and the Small Business Administration, residents will have to
leave their homes between this Nov. 30 and April 1, 2006, but will
be able to return for a short stint next summer. Non-members of
the association will also be required to leave their homes for the
winter months or lose rights to return next summer, SBA Regional
Director Mark Hayward said yesterday.
“We knew we had to leave here,” said Anna Kozlowski, who has
been a year-round Rocky Beach resident for the last 16 years.
Like many of the beach cottages and bungalows, the Kozlowskis’
home shares a view of Narragansett Bay. But the Kozlowski property
is also significantly different. The roof is in good condition and
the cottage is neat and well kept.
In stark contrast the neighboring cottage is boarded up, the
roof having collapsed. It has been abandoned. A number of the
cottages are in similar states of disrepair. Of the total 73
cottages, 48 are occupied.
During the park’s heyday Rocky Beach was leased. The park staff
maintained beach roads and provided water service. The park rented
some of the homes built on the leased land but many, like the
Kozlowskis’ house, were owner-occupied.
In bankruptcy proceedings following closure of the park in
1996, the SBA was named receiver of the property and, in a 2002
auction, agreed to sell it to Vanderbilt LLC for $25 million. The
company has ties to Toll House Brothers and plans to build at
least 350 housing units on the property.
The Rocky Beach portion of the land was offered to the tenants
for $11.25 million, the amount Arnold Goodstein of Vanderbilt had
assigned to the land. When the Rocky Beach Association didn’t come
through it appeared the deal with Vanderbilt was good to go.
The association, however, appealed to the U.S. District Court
on grounds the $11.25 million offer was unreasonable and it had
been denied its right of first refusal. Justice Ronald Legueux
didn’t agree. Nonetheless, the association persisted and the SBA
and the association reached an agreement this summer.
Pegee Malcolm yesterday credited the association for giving
residents any rights whatsoever, since as “individuals they had no
right to stay there.” Made up of 33 members, the association had
the right of first refusal to acquire the land, thereby giving it
leverage to deal with the SBA.
“Thanks to Congressman Langevin,” Malcolm said, “we were able
to deal with them [the SBA].”
Hayward said under the terms the association would be paid
$150,000, which will be spilt between its members. In addition,
four year-round beach residents who are association members will
get $10,000 each. The association, he said, also agreed that
seasonal and year-round tenants would leave their properties
between Nov. 30 and April 1, 2006 and, as of Nov. 30, 2006, would
vacate their homes for good.
The monetary terms of the agreement do not apply to
non-association members.
That has made for some hard feelings between neighbors and for
some “nastiness,” in Kozlowski’s opinion. She believes
developments, the park’s bankruptcy and all that has followed
since revolves around money.
“It all boils down to money,” she said, not faulting the SBA’s
efforts to recover loans. However, she added, “I guess [they] just
don’t care about the small people as long as it gets done.”
Kozlowski has not made arrangements to move for the winter
months and fears her home might be vandalized or suffer damage
from winter storms if she and her husband are not occupying it.
“It’s my palace,” she said of the house.
Malcolm said the association spent $42,000 in legal fees over
10 years, leaving members not all that much from the final
settlement. She said she is especially thankful the association
was able to win an additional $10,000 for each of its year-round
residents. Those funds, which Malcolm expects will be paid Oct.
15, have already enabled year-round resident Elaine Peloquin to
buy another house in Oakland Beach.
Malcolm also noted that the three-year association battle has
won all tenants four years of rent-free use of the property, a
value of $9,600 to $10,000.
Kozlowski’s neighbors, Carmello and Ruth DiCicco, likewise
don’t know where they will spend the winter. They have been coming
to Rocky Beach since 1969 and have been year-round residents for
14 years. They are among the 15 year-round residents who are not
association members and therefore won’t get either a portion of
the $150,000 or a $10,000 payment.
The DiCiccos said they had been association members but tired
of efforts that over the years never seemed to get anywhere. In
addition to annual dues of $25 association members paid
assessments to cover legal costs of its battle to keep the
property.
It could not be determined yesterday the amount of those
assessments and what association members can expect to be left
with after legal expenses.
“We got nothing,” said Ruth. “I won’t sell out my friends for
$4,000.” She said she feels the SBA is wrong for not extending
payments to all residents but has no hard feelings towards those
who will get payments.
Carmello questioned the logic of requiring people to vacate
their homes for the winter months when allowing them to stay would
ensure a presence on the property.
Malcolm said that following a fire at the beach, city
inspectors did a survey of the property and cited numerous unsafe
conditions, including kerosene and wood stoves. She said the SBA
was warned if there was another fire they could face fines.
The Rocky Beach settlement appears to open the way for the SBA
and Vanderbilt to finalize a purchase and sales agreement. That
agreement will give developers about 18 months to obtain the
necessary state and city permits and approvals to proceed with the
project. A preliminary meeting was held earlier this summer with
planning director Mark Carruolo.
Asked if the city could expect to see developments at the
vacant park, Hayward said, “I think we’re significantly closer to
being the sprint versus the walk.”
