Oyster Bay food vendor sues town after deal collapse leaves bitter taste 

The former operator of a town-owned restaurant at Tappen Beach in Oyster Bay has sued to try to enforce its licensing agreement after the municipality terminated the concessionaire's deal in February following a kitchen fire.

Bellport-based J & T  Beach Corp. alleged in a lawsuit filed April 21 in state Supreme Court in Mineola that it was owed a hearing before the town could end its operation of Beach Bar at Blu Iguana.

Tappen Beach is a resident-only facility on the eastern shore of Hempstead Harbor straddling the Village of Sea Cliff and the unincorporated hamlet of Glenwood Landing and boasting a marina, pool and playground besides the restaurant.

The town notified the company in a Feb. 17 letter it was terminating the agreement due to the company not maintaining a fire insurance policy for its own equipment and furnishings in violation of its agreement with Oyster Bay. The town-owned building is covered by Oyster Bay's insurance. 

“My client is ready, willing and able to reoccupy the space and intends to do so, so that everyone … in the town can enjoy the space like they have in years,” the concessionaire's attorney, Robert La Reddola, said in an interview. “We have an existing license. We believe it's still in effect.”

The Garden City lawyer said the concessionaire had the necessary insurance and the town's insurance policy covered the fire damage to the building.

An electrical fire broke out in the kitchen at 8:49 a.m. on Sept. 2, according to a spokesman for the Nassau County Fire Marshal’s Office. He said the fire damaged the roof and wasn't suspicious.

Last week, the building remained full of restaurant equipment, and fire damage wasn't apparent from outside.

Oyster Bay Town Attorney Frank Scalera wrote in an April 14 letter to the company that the town’s post-fire property inspection revealed the facility wasn't maintained in a sanitary manner, noting “the floors and walls were coated in grease.”

“The Town … owes a duty to its residents to ensure that a concession for the 2023 season operates in a sanitary manner in accordance with both the expectations of the Town and its residents,” Scalera wrote.

Scalera also wrote that the company owes the town $20,277.12 under its agreement and is responsible for a $100,000 insurance deductible on the fire damage.

The Oyster Bay Town Board approved terminating the license and awarding a new concession agreement at its March 21 meeting. Bayville-based Oyster Bay Restaurant Group, Inc. will operate the facility for three years and will invest $80,000 in capital improvements, according to the town board resolution.

In 2018, J & T Beach Corp. had started operating at the restaurant. In the past, Harendra Singh, the former restaurateur at the center of a corruption scandal that led to the federal convictions of former Nassau County Executive Edward Mangano and his wife, Linda, operated the property. Oyster Bay terminated Singh's license in 2016. 

Under the J & T Beach Corp. agreement, the town was able to terminate the deal without cause, in which case it would owe the vendor money for lost revenue. The agreement also stated Oyster Bay could terminate the deal for cause, in which case the town wouldn't owe anything to the concessionaire. La Reddola said the town indicated it was terminating both for cause and without cause. 

Oyster Bay Town spokesman Brian Nevin provided two town letters to J & T Beach Corp. in response to a request for comment. He said town officials quickly approved a new vendor so the restaurant can be open Memorial Day.