Shinnecock Pushing Forward With Plan For Discount Gas Station

Tired of the high cost of gasoline on the East End? The Shinnecock Nation thinks it might have an answer: an opportunity to buy tax-free fuel at a tribe-owned gas station on Sunrise Highway in Hampton Bays.

The tribe is moving forward with the plan as part of its continuing efforts to create a viable economic base for its people. The gas station, which would include a convenience store, would be constructed on tribal land on the north side of the highway, where construction has already begun on the second of two planned electronic billboard monuments.

“We were supposed to break ground around springtime,” said Tribal Chairman Bryan Polite, “but due to COVID, it got delayed. Now we are hoping to get a shovel in the ground before the first frost.” The goal is to have the operation up and running by next spring.

Mr. Polite said the tribe envisions a state-of-the-art 15,000-square-foot facility with 16 pumps and a convenience store, where besides a loaf of bread or half-gallon of milk, customers could stock up on Shinnecock-branded merchandise. The station could be open 24 hours a day on a seasonal basis, he added.

“A lot of tribes throughout the U.S. have had great success with gas stations,” Mr. Polite said.

The station would be owned by the tribe as a whole through Shinnecock Sovereign Holdings, a type of federally chartered corporation established by the Indian Reorganization Act of 1934 that are created to help tribes manage their income. A separate business, Eastern Woods Petroleum, would own the gas station itself.

Mr. Polite said the tribe would prioritize the hiring of its members and other Native Americans to staff the business, but would consider hiring non-natives as well in the long run. He said the tribe is also hiring a Native-American-owned company to do the construction work.

If the gas station is a success, Mr. Polite said the tribe may build a second one on its land south of Montauk Highway west of Southampton Village.

Tribal leaders have discussed the idea with both Southampton Town Supervisor Jay Schneiderman and New York State Assemblyman Fred W. Thiele Jr., and plan to meet with U.S. Representative Lee Zeldin later this week to solicit his support.

“With this project, we are trying to redouble our efforts to include local officials,” Mr. Polite said, “so we can coordinate for once instead of being at each other’s necks.”

Past tribal initiatives, from a proposal to have a gaming facility to the erection last year of the first of two planned electronic billboards, have often met with opposition from town and state officials.

Mr. Schneiderman could not be reached for comment, but he has indicated general support for the effort in the past.

Mr. Thiele on Tuesday said while he is “conceptually supportive” of the idea of a gas station and convenience store near the westbound rest area, he added, “the devil is in the details.”

“This is not a new concept,” he said. “The tribe initially approached me about this maybe three or four years ago, maybe longer. Nothing materialized at that time.” He said the tribe reached out again for his input about two months ago.

A major issue, he said, was whether the state Department of Transportation has the authority to grant the tribe access to Sunrise Highway and if it would do that if it does have the authority. “That’s an interesting legal question,” he said, adding that he had asked the DOT to meet with the tribe to discuss any concerns it may have.

Mr. Polite said the state has a right of way for the road and knows the tribe has sought an off ramp for years. He added that the tribe planned to meet with the DOT soon to discuss the matter.

Asked if he was concerned about the prospect of long lines of motorists backing up the westbound lanes as they wait to buy gasoline, Mr. Polite responded, “That might be a good problem to have.”

Because it will not have to collect tax, the tribe will be able to sell its gasoline for 40 to 50 cents a gallon less than its competition, he said.

“There have been a lot of issues I’ve been interested in during my tenure, and gas prices on the East End has been one of them,” Mr. Thiele said. “A lot of major oil companies have used zone pricing to artificially inflate prices to their dealers who are forced to pass them along. One of the appeals of this idea is it would promote competition.”