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Real Estate Center

Apr 26, 2011 2:17 PMPublication: The Southampton Press

$43 Million Tear-Down Approved In Sagaponack

Apr 27, 2011 11:54 AM

The new owners of the oceanfront Sagaponack estate once owned by former New Jersey Governor Jon Corzine and his now ex-wife plan to raze the 6,200-square-foot house they paid $43.5 million for just last year, making way for a neo-Georgian design nearly double its size that affords better views of the sunset, according to the project’s architect.

The Sagaponack Village Architectural and Historic Review Board approved the demolition of the just 11-year-old house and the design of the new 11,200-square-foot structure last week, according to board Chairwoman Ann Sandford.

“It’s a very different kind of house,” Ms. Sandford said of the new design, which will feature a front facade of towering columns and octagonal windows in back for broad ocean views. “But it’s by a famous architect, and it’s beautifully designed. It’s kind of a gentle presence in the landscape, particularly from the ocean side.”

Ms. Sandford said the new house also will be set back farther from the ocean dunes than the existing house is, a nod to erosion problems experienced along much of the Sagaponack waterfront.

Ms. Sandford said that because of the size of the property, 6.5 acres in all, the new design needs no variances, even though it approaches the village’s maximum house size ceiling of 12,000 square feet.

Mr. Corzine, the former governor of New Jersey and one-time CEO of Goldman Sachs, and his wife, Joanne Brown, built the current six-bedroom, six-bath house in 2000. The interior was decorated by designer Marshall Watson and has been featured in numerous interior design magazines in recent years.

Ms. Brown took ownership of the house and property, which is on Gibson Lane, in 2002 as part of a divorce settlement. It was assessed last year at $21 million. In 2009, Ms. Brown rented the house to billionaire investor Henry Silverman for $900,000 for the summer season.

The property sold last summer to a limited liability corporation reported to be owned by hedge fund manager David Tepper, the founder of Appaloosa Management. The project has been represented before the village only by an architect, Jaquelin Robertson of Cooper, Robertson & Partners.

The new house is to be built by Ben Krupinski Builders, who has built homes for Martha Stewart and Jerry Della Femina and is currently managing the construction of the new Parrish Art Museum in Water Mill.

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By EHDiva (7), East Hampton on Apr 26, 11 2:59 PM
1 member liked this comment
Yes, it always seems there are plenty of funds for luxury, avarice, and excess...
By Mr. Z (11847), North Sea on Apr 26, 11 3:18 PM
Yes, how sickening it is that someone dare stimulate the local economy by employee carpenters, plumbers, excavators and the like! How dare they increase the price of their home/property and therefore pay higher taxes to further subsidize the school district, police, fire, county etc. You are right EH Diva, these are terrible people - what with their desire to build within their rights (further from the beach)!

It's especially sickening when you think that if this were 6 individual 1-acre ...more
By Nature (2966), Hampton Bays on Apr 26, 11 3:42 PM
As I recall, if you can wrap your mind around this, it is this type of "stimulation" of our economy which has driven the price of EVERYTHING far beyond the VanAllen Belt.

Every dime this guy ever "earned" was based on taxpayer bailouts, zero interest Fed loans to his "financial institution", and in the end WE paid for it all, and receive a pittance tossed at the "local economy" for it so a local guy can pull down an average of 30k to 50k a year.

Apr 26, 11 6:01 PM appended by Mr. Z
Who do you think funded the interest paid on the TARP loans? The CEOs? HA. Don't think so pal. They lent it out to the taxpayers, and THEY funded the interest, on their own money.
By Mr. Z (11847), North Sea on Apr 26, 11 6:01 PM
You don't need to write a essay....You really think people are going to sit there and read that??! HA
It is sickening that someone would buy the house for that much money and then turn around and demolish and rebuild? MUST BE NICE!
By EHDiva (7), East Hampton on Apr 27, 11 9:09 AM
So anything can be rationalized in the name of creating a few jobs? I don't think so. And Mr. Z is correct, Corzine's fortune was built on the backs of American taxpayers
By razza5351 (551), East Hampton on Apr 27, 11 11:15 AM
"The fact that Corzine and Tepper worked together at Goldman Sachs and happened to be involved in this transaction is no coincidence. My guess is that Mr. Tepper overpaid for the property to help out the former Ms. Corzine."

Yes happy that tax payer money flows to the former CEO of GS:
taxpayer-->TARP-->GS-->Hedge Fundie-->Corzine
By davidf (325), hampton bays on Apr 26, 11 4:33 PM
Z and David,

You mean to tell me if you had 10 billion + dollars in the bank you wouldn't spend it? Would you guys rather have him NOT demo this house and employee how many local workers? Yea, the whole trickle down economics thing doesn't work on a country-wide scale, but it does work on a local scale.

This guy made his $$$ off making risky investments like dumping a TON of $$$ into B o A which when it recovered resulted in him making a nice profit. Guess what - ANYONE could ...more
By Nature (2966), Hampton Bays on Apr 27, 11 9:17 AM
1 member liked this comment
"Trickle down" economics has worked VERY well, obviously. That's why the latest generation of local children will be able to afford to live in their own hometown!!

That's why we just had a massive fiscal meltdown, based on the policies of deregulation.

I'd need my hands and feet to count how many ways the "elite" can spend their money to make money manipulating, and profiting from the "free" market, in ways that YOU can't. Most likely ever. The entity known as "Bank of America" ...more
By Mr. Z (11847), North Sea on May 2, 11 5:21 PM
"That's why we just had a massive fiscal meltdown, based on the policies of deregulation."

If only we had regulations like the Community Reinvestment Act we wouldn't have collapsed the system with millions of subprime mortgages...oh wait, I have that exactly backwards.
By RealityFirst (597), Bridgehampton on May 2, 11 5:33 PM
It's WAY deeper than just that.

Push the clock back a little further, and look into sixteen clandestine letters between Goldman, and the CFTC.

Maybe that will whet your appetite for more...
May 2, 11 5:38 PM appended by Mr. Z
By Mr. Z (11847), North Sea on May 2, 11 5:38 PM
Real Estate is still a good investment in the Hamptons

A great time to Rent, Buy or Tear Down !!!

By shock (70), whb on Apr 26, 11 9:39 PM
By goldenrod (505), southampton on Apr 26, 11 11:01 PM
Ummm Z Man-I think Goldman paid back the bail out $$$. The fact that there will be jobs created from this project proves that trickle down economics works. They're even moving the new house back from the beach, what in the world is wrong with any of this? Besides the tired old class envy talking point of course.
By bigfresh (4666), north sea on Apr 27, 11 7:06 AM
Is that why real estate is so affordable?

Because "trickle down" economics works? Come on man, we've had easily a seven fold increase in disparity during the last thirty years. We've seen 1% of the population, increase it's share of the wealth, so that they now own 40% of the country.

Checks and balances laid down after the Great Depression were repealed, and the economy blew up in less than a decade after the legislation passed.

Take a serious, good hard look at what ...more
By Mr. Z (11847), North Sea on May 2, 11 5:27 PM
Photo used in story reveals how over time the dune somehow developed a dip which opened up view from house. Village inspector and Town Trustees may want to keep an eye on that....a closer eye than when the owner of estate east of there was allowed to raize it's dune a few years ago
By bambi (76), bridgehampton on Apr 27, 11 7:34 AM
1 member liked this comment
Correction: raze
By bambi (76), bridgehampton on Apr 27, 11 7:36 AM
Just SICK..to have that much money is one thing...to tear this down and start again is just beyond sick really...maybe this is why Mother Nature is so mad and reigning down one catostrophic incident after another to our our world..Southampton should not have allowed it...
By gansetteer (125), East Hampton on Apr 27, 11 9:54 AM
1 member liked this comment
By EHDiva (7), East Hampton on Apr 27, 11 3:40 PM
If you build it they will come
By ride the truth wave (125), southampton on Apr 27, 11 11:10 AM
A minor but factual detail is the house was actually built in 1987-88, not in 2000 as the article states. Other than that, best of luck to all involved. As the world turns....................
By WEK (12), southampton on Apr 27, 11 11:24 AM
In early '90s. And under a giant blue bubble so as not to be slowed down by weather!
By bambi (76), bridgehampton on Apr 27, 11 7:12 PM
People with smaller properties always seem to need variances, going back and forth to the town for anything and everything under the sunset. Maybe the town is speading their process up. I know everyone has the best interest of environmental concerns and the taxpayers as their focus. We can only hope.

By RonM (8), Hampton Bays on Apr 27, 11 11:35 AM
I think this would have been more tasteful to the taxpayers and residents out here if the same very wealthy person, who could afford to pay double the property's value and another bazillion dollars on a new house, paid to move the existing and gorgeous 11 year old house to a property the Town may own or help them buy a property, and convert the interior to affordable income apartments. That's why people think it is sickening - that a perfectly good house is being torn down when so many people are ...more
By sirpoochala (78), Hampton Bays on Apr 27, 11 1:17 PM
1 member liked this comment
I agree on lthe trickle down economics thing and boy am I glad! as i have 3 sons in the area standing to benefit, a carpenter and 2 stone masons. Of course, they are the best in their business!! Yes sir even my two grandfathers worked for the Manhatten dollar. Since 1880 the family has been in the construction business.
So let them tear down re build, so what it is their money. I just wish the summer residents were a bit more polite like they used to be. And we didn't complain either. Just ...more
By summertime (589), summerfield fl on Apr 27, 11 1:26 PM
I wish that they would bring some of these size transactions and employment to the North Fork! Just a few.......Please????
By northforker2 (1), Southold on Apr 27, 11 5:33 PM
Yea...and these people are paying a lower percentage in taxes than the rest of us.....before his write-offs.
By SHNative (554), Southampton on Apr 27, 11 8:34 PM
Yea...and these people are paying a lower percentage in taxes than the rest of us.....before their write-offs.
By SHNative (554), Southampton on Apr 27, 11 8:34 PM
Yes it is sickening and yes it will create some jobs.... Until construction is finished. What this really illustrate is that the rich keep getting richer and well you know the rest
By Biba (566), East Hampton on Apr 27, 11 10:56 PM
Not sure what the griping here is all about. This guy owns the house, he's going to knock it down and build another one,FARTHER FROM THE BEACH. It's not like he needs a varience or is clearing virgin land. What's the problem with that? Seems like a lot of class envy here that I just don't understand.It's large properties like this that keep our tax rates incredibly low. Compare our taxes to some UTI (up the Island) school districts! 10k for Center Moriches for example. No expensive properties = ...more
By bigfresh (4666), north sea on Apr 28, 11 6:12 AM
The question, it seems to me, is not an economic one , or class envy. It is an ethical one. What about the resources and trees cut down to build the existing house? We are not surrounded by untapped virgin country as in the days of the old estates. Shall we just continue with this endless concept of growth and expansion until we hit bottom? Are people here suggesting that creating jobs and providing tax dollars is the raison d'être to just plow ahead without foresight?

What about ...more
By Cedarshakes (1), Southampton on Apr 28, 11 9:32 AM
2 members liked this comment
Be thankful a local builder won the contract. Not some out of towner. We need the jobs. I am sure that most of the doors, windows, plumbing, lighting, etc. will be donated to some sort of charity. He may get tax write offs but people may benefit from it.
This project will employ so many people it is staggering. Not just locally, but across the nation. furniture, carpeting, cabinetry, trees and shrubs. it really goes on and on. These types of homes are not built with cheap imports from the home ...more
By ADAMSG (53), EAST QUOGUE on Apr 28, 11 1:17 PM
The xenophobic envy on this blog is astounding
By joe hampton (3461), south hampton on Apr 28, 11 9:24 PM
1 member liked this comment
coming from the biggest xenophobe here
By fcmcmann (417), Hampton Bays on May 3, 11 5:49 PM
Part time residents pay a large amount in property taxes and use a small amount of services, a good deal for the full time residents, dont'cha think? The lumber used for construction is, for the most part FARMED, not cut from virgin forest>
By bigfresh (4666), north sea on Apr 29, 11 6:31 AM
1 member liked this comment
Yeah, and the best part of the deal is that the next generation can't afford a home, so they won't have to put up with the plebeians owning property.
By Mr. Z (11847), North Sea on May 2, 11 5:32 PM
So what do you propose?

A cap on home prices? Or perhaps some confiscation from the "undeserving" and redistribution to the "deserving" would be in order...

Between sales taxes on materials and services, transfer & land preservation taxes on the original purchase, and permitting fees, this guy has easily pumped $5,000,000 in tax revenue into the system. Heck, that's almost enough to cover the book value of a pension for a single Long Island elementary school teacher. Well, almost.
By RealityFirst (597), Bridgehampton on May 2, 11 6:21 PM
1 member liked this comment
I'd like a "non-recourse" loan, on my investments, just like bankers, and their wives. That way, when I can't pay back the loan, I don't have to. AND, if I make money, I get to keep it.

What all of you fail to do, is wrap your mind around the entire picture of what has gone down. The prices of housing, and commodities were driven to insane levels by manipulation of the markets. Nothing would cost this much, without "trickle down" ecomomics.

They didn't "remove the noose" from ...more
By Mr. Z (11847), North Sea on May 2, 11 6:36 PM
We have been over this one hundred times. If the market was allowed to work and there were no bank bailouts, and the people who cant afford the bill Clinton red lining inspired Barney Frank loans were allowed to lose their homes. The prices would have corrected themselves by now. Instead the unions want more and more benefits and obama refuses to cut anything... the only tune he knows is raise taxes and print $ print $ print $
inflation is inevitable. Thats why I bought gold!
By joe hampton (3461), south hampton on May 2, 11 7:30 PM
Silver was cheaper.
May 2, 11 8:00 PM appended by Mr. Z
Still hoping for a "Miracle Out of Nowhere", but I'm not betting on it. If you can get in on silver before the market is cormered, buy in bulk.
By Mr. Z (11847), North Sea on May 2, 11 8:00 PM
BTW joe, not to pry, but I've learned alot about Wall St. over the years.

Did you actually buy gold, or a piece of paper that just says you did? Sort of like buying shares, and finding out the number of proxies submitted exceed the actual amount of market shares?

Most likely the former, but I have to ask...
By Mr. Z (11847), North Sea on May 2, 11 8:22 PM
thanks phill ... me taking investment advice from you.... chuckle
By joe hampton (3461), south hampton on May 5, 11 2:21 PM
Z Man: In our unique LOCAL economy , where a majority of us do work of some sort for the wealthy second homeowners, trickle down economics works! You live in the Southampton school district, so do I, our school taxes are low compared to the neighboring towns, eg. Tuckahoe or Hampton Bays. Here's why, the mega rich with their large estates and expensive homes pay out the nose and the rest of us reap the benefits! More trickle down at work! Don't begrudge the most successful among us, perhaps draw ...more
By bigfresh (4666), north sea on May 3, 11 6:41 AM
Tell that to the people who ring your retail purchases.

I'm sure they'd LOVE to hear how if they just apply themselves, they can own a home here on minimum wage, working for two, or three companies.

Just because you think it works in this little test tube, doesn't make it feasible on a large scale. I'm really doubting you grasp the academic, and mathematical fineries of just what "trickle down" economics is.

I'll clue you in here, and stop me if I don't hit the nail on ...more
May 5, 11 5:58 PM appended by Mr. Z
If you haven't thumbed it yet, I recommend "The Great American Stickup: How Reagan Republicans, and Clinton Democrats enriched Wall St. while mugging Main St.".
By Mr. Z (11847), North Sea on May 5, 11 5:58 PM
1 member liked this comment
If 100 homes were built for $430,000 each, that would have created a heck of a lot more jobs than one home for $43M.

It also would have sold 100 big ticket items like refrigerators, dishwashers, washer/dryers, ovens, bathroom fixtures like tubs, sinks, showers, etc, which injects money into the overall economy.

Plus, if only half of those homes decided to use sprinkler systems, that means 50 installation jobs (and yearly maintenance) for local sprinkler installers instead of ...more
By btdt (449), water mill on May 3, 11 12:48 PM
The big ticket items for your $430,000 homes will all be manufactured over seas doing nothing for the overall economy of the USA
Your 100 $430,000 homes will be putting hundreds of kids into the local school district, increasing everyone's property taxes.
By ADAMSG (53), EAST QUOGUE on May 4, 11 11:14 AM
It all depen on what quality of work you do. If you work on high end properties, this is a Godsend, if you work on subdivisions , not so much.
By bigfresh (4666), north sea on May 3, 11 5:14 PM
By politcal pawn (121), Flanders on May 7, 11 5:29 PM