Michael Satsky and Brian Gefter, the operators of Lily Pond nightclub in East Hampton, went to court to prevent their landlord from terminating their lease on the space with one year left on the deal. Yesterday, our city-bound colleagues at Eater NY got their hands on the court documents.
The basic story is this: Satsky and Gefter agreed to a three-summer deal for Lily Pond with the leaseholders of the Three Mile Yacht Club in East Hampton, a space that had never taken off out east due to its isolated location. In March, these leaseholders came to Satsky and Gefter and said that they had received a more lucrative offer from another operator, and had decided to take that deal and buy out the Lily Pond team from the new down payment. They offered to keep Lily Pond in place if Satsky and Gefter would sign a new four-year deal for the space at worse terms than they currently enjoy. The two went to court and got an injunction, because after all, a deal is a deal. Seems pretty straightforward. But what's really interesting was the original deal terms and seeing how these Hamptons operating agreements work.