The Southampton Press reports that the settlement between Southampton Town and Discovery Land Company over The Hills puts $11.5 million in cash into the town's hands. The settlement also transfers a 32.4-acre parcel on Montauk Highway and opens a public trail corridor through the development. The land and the trails come with addresses, specifications and deadlines. The cash comes with no required use. If you're comparing East Quogue with other South Fork hamlets, that difference matters most. The physical benefits are written into the deal. The financial benefit for the hamlet itself is still under debate.
The fight lasted about a decade, and it ended in a deal built on leverage, not on a court ruling. Knowing where that leverage came from explains why the deal looks the way it does.
A Strip of Town Land Nobody Had Mentioned
The settlement ends three lawsuits. Discovery brought two against the town. Highway Superintendent Charlie McArdle filed the third this year. His suit, according to the Southampton Press, revealed that the town still owned a strip of land cutting through Discovery's property. That ownership "had not been previously disclosed in the years of planning and review."
The strip gave the town something Discovery needed. Under the Southampton Town stipulation, Discovery pays $10 million for that narrow piece, along with a small adjoining town outparcel, and pays another $1.5 million as a "public benefit." In return, the town agreed to propose a rezoning that lets the golf course, clubhouse and related structures run as a commercial private-membership club. The revised Southampton Town local law caps memberships at 295. That cap covers the 118 memberships for owners of homes in the development and up to 177 more for people with no connection to the residences.
Those 177 outside memberships are what Discovery gains. The Group for the East End, a longtime opponent of the project, argued at the August hearing that each membership could sell "for hundreds of thousands of dollars or more." It also said the deal frees Discovery from funding tens of millions of dollars in community benefits tied to the original change-of-zone proposal. The Town Board approved the settlement unanimously in July.
What Changes Hands, and When
The stipulation, dated July 14, 2026, sets out each exchange and the event that triggers it.
| Item | From | To | Trigger |
|---|---|---|---|
| Golf club rezoning, up to 295 memberships | Town Board | Discovery | Local law adopted after public hearings |
| 32.4-acre parcel at 436 Montauk Highway | Discovery | Town | Deeded within 10 days of the rezoning, held in escrow until release |
| $1.5 million public-benefit payment | Discovery | Town | Wired to escrow within 10 days of the rezoning |
| $10 million for the town-owned strip and Outparcel 18 | Discovery | Town | Settlement condition tied to the land purchase, subject to permissive referendum |
| Spinney Road public trail easement and parking | Discovery | Town | Spinney Road local law and easement acceptance |
| Four charity events on the course each year | Discovery | Fire department, school district, two other charities | Written into the rezoning |
The charity events have specific terms. Each year the course must be available in early spring or late autumn for one local fire department fundraiser, one school district fundraiser and at least two other charitable events. Those groups pay no rental fee for the course or clubhouse. Discovery may still charge for caddies, food and beverage.
The Benefits That Come With an Address
The parcel at 436 Montauk Highway is the largest physical item in the deal. Discovery has to clear any mortgages or liens and leave the existing house vacant before the deed is released from escrow. The farmstand already operating there may stay on its current lease, and Discovery may renew that lease for one year if it would otherwise expire before the transfer. No published plan for the parcel turned up in our research.
The Spinney Road piece is more fully defined. The northern part of the road, which runs through The Hills property and the golf course, is abandoned. In exchange, town residents get a permanent public easement to reach hiking and biking trails to the north. McArdle had argued the route needed to stay open for emergency access to the woods beyond the development. The local law addresses that concern directly:
- A 15-foot trail corridor that includes a 10-foot emergency-access path
- Recreational use from dawn to dusk
- Four public parking spaces at 67 Spinney Road
- A public trail plan, with a trailhead and parking, due within 90 days
- Construction substantially complete within 18 months after the town approves that plan
Discovery will also improve and maintain several miles of town trails along Spinney Road and on surrounding town land east of The Hills, permanently. Part of the trail system is to be wheelchair accessible, with compacted soil or wood chips, where the grade allows.
The Cash Has Several Claimants
The $11.5 million comes with no spending instructions. The Group for the East End objected to exactly that point, describing the cash as having "no specific obligations" attached to its use. At the August 11 hearing, and in Newsday's July coverage, different people put different claims on the money:
- East Quogue Citizens Advisory Committee. Chairwoman Cathy Zembetti said the CAC wants a majority of the money spent in East Quogue, with a community center and more downtown parking at the top of the list.
- East Quogue Civic Association. Longtime leader Anne Algeri said, "Not a majority of the funds — all of the funds need to be kept in East Quogue."
- Fire and EMS. A resident said the fire department and EMS "should be a priority" and called a community center "a wonderful and lasting investment."
- Highway Department. Newsday reported that McArdle expected a large share of the money to go to Highway Department equipment and road paving.
The Town Board has not picked among them. Councilman Michael Iasilli proposed a balanced committee of stakeholders and residents to work out how the money should be spent in East Quogue. Councilman Bill Pell cautioned that a facility like a community center "can eat up large chunks of the funding in one fell swoop."
Pell's point is the real constraint here. A community center, a downtown parking lot, fire and EMS equipment and highway paving each have strong supporters, and $11.5 million probably cannot fully fund more than one or two of them. The hamlet's main gain from the settlement will be whichever of those the town chooses, and as of early October no committee has been formed and no allocation has been published.
Where the Votes Stood at the End of September
The settlement is conditional. The Town Board has to pass both the rezoning law and the Spinney Road law within 90 days of the stipulation date, unless the deadline is extended for good cause or by agreement. If the laws fail, the settlement becomes void and the lawsuits resume. The $10 million transfer of town property was also subject to a 30-day permissive referendum period.
The town canceled its regular September 22 meeting and scheduled a special meeting for September 24 to take up the business from that agenda. The agenda listed adoption resolutions for both Hills laws. We could not find a published vote record confirming the outcome when this post was written. Councilwoman Cyndi McNamara said in August that the community "want[s] to see a resolution to this."
What Is Already Settled on the Ground
Construction is moving regardless of the paperwork. At the August hearing, the Southampton Press reported the golf course complete, about 22 homes finished and another 25 under construction. The approved Lewis Road Planned Residential Development includes 118 residential units plus 12 workforce-housing units, with about 433.7 acres set aside as open space.
Groundwater was a central concern for longtime opponents. A resident asked the board to make sure Discovery protects the aquifer. Town planning and development administrator Janice Scherer said The Hills follows the same organic maintenance and monitoring rules used at The Bridge and Sebonack. She added that nearly three years of test-well monitoring around the course had found no sign of contaminants reaching groundwater.
A second East Quogue decision is also before the town. The Dockers Waterside site at 94 Dune Road is proposed to become 25 condominium units on 8.61 acres in R-80 zoning, with an on-site sewage treatment system. The state's Environmental Notice Bulletin reported on August 26, 2026 that the Planning Board had accepted the Final Environmental Impact Statement. The board's September 10 agenda listed draft SEQRA findings for consideration, and we found no record of a final approval after that meeting.
Frequently Asked Questions
Can people who don't live at The Hills join the club?
Yes, under the proposed rezoning. It allows up to 177 memberships for people not associated with the residences, on top of the 118 for homeowners. We found no published initiation fees or dues.
Will the public be able to use the trails through the property?
The Spinney Road easement provides a 15-foot corridor open from dawn to dusk, with four public parking spaces at 67 Spinney Road. Construction is scheduled to be substantially complete within 18 months after the town approves the trail plan.
Is there current price data for East Quogue specifically?
We found no published 2026 sales figures for East Quogue alone. For the Hamptons as a whole, Newsday reported Miller Samuel figures showing a Q2 2026 median sale price of $2.2 million, up 16.1% from a year earlier, while closings fell 10%. In the same quarter, Hampton Bays was the only Hamptons submarket with a median under $1 million, at $900,000.
If you own property in East Quogue, or are pricing a home near Spinney Road or the Montauk Highway corridor, the terms of this settlement are part of what a careful valuation looks at. Jennifer McLauchlen and our appraisal practice follow Southampton Town decisions like this one closely. Request a Valuation & Consultation, and we'll go through how these specific changes relate to your property.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
