What if the big problem at the future Este Restaurant in downtown Montauk wasn't the potential for its rooftop deck to become a D.J. venue or its lack of adequate parking or sanitation based on true occupancy levels, but the fact that it is being built on property that was meant to remain undeveloped?
A new petition seeking to halt construction of the controversial project at 3 South Emery Street, owned by 666 Montauk Land L.L.C., asserts just that and asks East Hampton Town to impose a stop-work order until new questions raised about the property can be resolved. Attorneys for the developers say the questions are moot.
Once upon a time, the land occupied by the former Sands Motel, its pool, and a cottage, comprised 11 small lots, numbered 31 to 41 and separated by a 20-foot easement/alley that runs west from South Emery Street behind the motels.
Lots 31 to 36 were on the north side of the easement, and they've since been merged into the one parcel owned by 666 Montauk Land L.L.C. Lots 31 and 32 contained a cottage that pre-existed zoning and lots 33 through 36 were vacant except for the swimming pool, which still exists today.
Lots 37 to 41 were on the south side of the easement and contained the Sands Motel buildings and a large parking lot. They're located at 71 South Emerson Avenue and are now owned by 71 South Emerson L.L.C.
The two parcels are now controlled by Enduring Hospitality Group, a "vertically integrated lifestyle team," according to its website.
Under "investment strategy" the website says: "Local municipalities are often difficult to navigate. While therein lies the opportunity, it is important our underwriting only considers what we know we can achieve."
Marley Dominguez, Enduring's managing partner, co-owns Offshore Montauk, the new name of the former Sands Motel.
(Across the street is 79 South Emerson Avenue, owned by 79 South Emerson L.L.C. and doing business as Offshore Residences. A stay is currently listed as about $1,000 a night. It's also controlled by Enduring Hospitality Group and Mr. Dominguez.)
Back in 1963, when things were far simpler, the Sands Motel, owned then by Harold and Julia Hausman, sought variances from setback requirements in order to add a second motel building, and office, and new sign.
The board agreed to the setback variances with the stipulation that lot 33 remain vacant.
At a 1963 town zoning board of appeals meeting, the Hausmans spoke "and said that the proposed sign would replace all existing signs at the motel. They also stated that lot 33, which is presently vacant, would remain vacant as an open area for use of motel customers," according to the Z.B.A. determination.
The former lot 33 is now the site of the future Este Restaurant.
The zoning board, even way back in the uncluttered 1960s, noted in its determination that "If lot 33 is retained as open space, it will compensate for whatever crowding occurs by the granting of the required variances" for the setbacks.
It is unclear if the conditions attached to that lot changed when the lots were merged into one larger parcel or if they even apply, given that the second motel building was never constructed.
"In 1963 the Hausmans proposed to build a motel on the property, which is now Este and the motel swimming pool. They needed setback variances. The Z.B.A. granted the variances and conditioned its approval on field map 33 (one of the seven lots making up the parcel) not being built on," Richard Whalen and Thomas Crouch, attorneys representing Mr. Dominguez and Enduring Hospitality, wrote in a text. "But the motel, obviously, was never built so the 1963 Z.B.A. decision is moot and the condition regarding lot 33, which was specific to that approval, is without effect."
In 1963 the Z.B.A. specifically mentioned the issue of setbacks at the corner as it worried about traffic sightlines.
"One of the chief purposes of front-yard setbacks being required on both streets on a corner parcel, as this one is, is for visibility for traffic," reads the 1963 determination. "In this instance, due to the exceptional width of the streets at the intersection, the allowance of the requested variances should not interfere with traffic."
Pictures taken last week show much of the new construction edging right up to the pool, squarely in lot 33.
Jeffrey Bragman, a land-use attorney who is representing Village Dunes Cooperative Association, took issue with Mr. Whalen's statement that the 1963 determination was "moot."
"It appears that the variance decision granted relief for construction of an office on the hotel property, which was in fact constructed," he texted Tuesday.
A petition that began circulating last week on change.org, started by a group calling itself the Montauker, is asking East Hampton Town, in part, to investigate the Este/Sands Motel approvals for lot 33.
"Issue a stop-work order for the Este Restaurant construction immediately, pending the Building Department's determination as to whether any portion of the Este Restaurant structure, decks, or other improvements encroaches on lot 33," reads the petition.
"The survey and approved site plan raise a substantial question of overlap, but we are not licensed surveyors and do not represent that the precise boundary has been established," the petition continues. "The Building Department should verify the boundary before further construction proceeds. If an encroachment is confirmed, the town attorney should determine whether relief from or modification of the 1963 Z.B.A. condition is required before work on lot 33 may resume."
When presented with the old determination and survey in an email, Jacob Turner, the town attorney, declined to comment on possible actions the town might take.
In an email, Rob Connelly, who was town attorney before Mr. Turner, agreed with Mr. Whalen's assessment and added, "If the town really wanted it to apply in perpetuity, they should have required a covenant and restriction to be recorded against the property, which I do not see any indication of."
As noted at the Aug. 19 planning board meeting by Tina Vavilis LaGarenne, the town's planning director, Mr. Dominguez's various representations to the board and the Building Department contain discrepancies that create a "concerning fact pattern."
The petition lays out a two-and-a-half-year timeline, starting with the early 2024 purchase of the Sands Motel for $23.5 million by Mr. Dominguez's group.
In a May 2024 submission requesting to raise the roof height of the old Sands Motel, the Planning Department noted that the sanitary system at the motel was likely antiquated, but that information regarding it "has not been provided." When it became clear that the department would like that information, Mr. Dominguez withdrew that application, obtained a building permit for exterior renovations, and started on unpermitted interior work before he was hit with a stop-work order.
The stop-work order was subsequently lifted. Offshore Montauk opened in June 2025. The septic was never addressed.
Earlier in 2025, Mr. Dominguez had his first planning board meetings regarding 666 Montauk Land L.L.C., where he hoped to build Este. Originally presented as a single-story 17-foot structure with a roof deck, revised elevations in June of 2025 showed the building at nearly 30 feet high.
It's not clear if the 1963 Z.B.A. determination was discussed during the Planning Department review of Este's application. It is clear that if Mr. Dominguez had been required to upgrade the septic at Offshore Montauk, lot 33 would have been some of the only open land available to him to fit a large structure.
Meanwhile, a new I/A system was installed for Este, but sized for a 39-seat restaurant, not for nearly 300 standing patrons at bars on different levels of the building.
Also in June 2025, Mr. Dominguez applied for a certificate of occupancy for eight condominium units at 79 South Emerson, the Offshore Residences. But the application before the Planning Department and architectural review board sought to convert only seven existing motel units to condominiums. He received a tongue lashing for this at the Aug. 19 planning board meeting, when the town planning director called out that "concerning fact pattern."
There has been a lot going on at once ever since Enduring Hospitality Group became involved with these parcels. The review for each piece of work was chopped into smaller bits, with applications coming from different limited liability companies that owned the properties. It now appears a master plan has come into view, and it's for a much larger project than the land can support, most obviously in terms of parking or sanitary needs, the planning board has said.
In fact, even in 1971, when the Sands asked for, and received, another variance, the Z.B.A. complained that "applicant has failed to show adequate parking."
Clearly, the Montauk community is watching closely. The last petition against Este quickly gained over 600 signatures. This latest one had 254 as of yesterday.
