What started out as a "what if" proposal initially touted by everyone involved as impossible, has become reality. Within two weeks, the site of the Oak Beach Inn, a troublesome and contentious piece of land that has raised passions on both sides as if it were Gaza Strip, is expected to be put into public hands. The legal agreement—if signed—ends more than 20 years contentious disagreements in the court room, in the bar and in the OBI’s parking lot.

"Astounding," said Oak Beach Association president Gus Coletti. "At one of our first meetings, someone raised the possibility of us working toward this, but we thought it would never happen, so we began to fight for what we knew we could fight."

That fight was over a proposal by longtime Oak Beach Inn owner Robert Matherson to sell the land to a developer first for a major hotel and then later for a high-end condominium project that would have closed off the popular waterfront area to the general public forever. The Oak Beach residents, who have been an integral part of the issues involved on the site for more than two decades, sought to temper the size of the plans to make them more conducive to the area and less intrusive on their small waterfront community.

A small group of town historians, however, with a vision for the future apparently as sharp as for the past, recognized the historical value of the site and banded together. The Babylon Historical Commission issued a formal statement more than a year ago saying that town, county and state officials should bring the property into public hands.

One of those who prompted the move was Bill Lauder of Amityville, a member of the Commission and a former Babylon Town Supervisor who decades earlier had worked to bring the marshes and thatch islands in the Bay under municipal ownership.

"I think this is wonderful news," said Lauder in discussing the settlement. "It is the best thing to happen to the Town of Babylon in some years."

"I feel great about it," said S.C. Leg. Dave Bishop who helped put the deal together. "We successfully drew a line in the sand against high-rise development on the coastline and that's invaluable."

Under the agreement ending all of the lawsuits associated with the property, which was struck by all sides in a conference room for Judge James Catterson in State Supreme Court in Riverhead late last month, the Town of Babylon will pay Matherson $1.7 million and give him ownership of the nine-acre parcel. Matherson had been leasing the land from the Town and fighting for years to get the Town to make good on a 1981 agreement that gave him an option to purchase the land.

In turn, Matherson would sell the property for $5.35 million to Ross Cassata, the developer who was in contract with Matherson to buy the land and build on it. Cassata would then sell the land to the county for $7.95 million under the county’s Greenways program. The site would eventually be developed into a county waterfront park to be maintained by the Town of Babylon.

"I think this is a fair settlement and it is a shame that Mr. Matherson has had to wait 20 years to get any satisfaction from his claims against the Town, which he has won on every front," said Matherson’s attorney, Ralph DeSimone.

Milton Thurm of Thurm & Heller, who represented the Town in the case said the important fact in the case is that the Town’s people are now getting a park. "The Town is not only ending this litigation but also creating something of benefit to all residents in the Town and that is the key to all of this," he said. "It was only through the leadership of the Town officials who worked diligently with state and county officials to create something positive for the residents."

Babylon Town Councilman Steve Bellone said the Town will provide the county with a preliminary plan for the site at the closing.

"What we want to do is meet with the community and form an advisory committee to look at different options," said Bellone who has already reached out to New York State Senator Owen Johnson and Congressman Steve Israel in the hope of getting their support—as well as state and federal dollars—in making the site into a park. "This is a major undertaking that will cost millions of dollars."

"I’d like to see them keep the OBI," said Coletti. "That’s an historical building and it could be used as a bread and breakfast."

Bellone said one of the considerations will be to look at the site in terms of its ability to generate some revenue. "Millions of dollars have been and will be spent there and that definitely is a consideration," he said.