Press Release 1/21/2013
I’m Jim Shelly, the owner of Georgica Services, Ltd. Since so many people have asked about it, I’m writing to tell you why we have closed Sag Harbor Getty and moved our repair shop back to East Hampton. This is a long story, but essentially, we lost money selling gasoline in 2012 and didn’t see any hope for 2013.
Last April after we had run the station in Sag Harbor for 7 years, our gasoline supplier Getty Petroleum went bankrupt. That ended our 5 year lease on the gas station. Our rent and gasoline security deposits of $25,000 were lost in the bankruptcy. Getty Realty, the owner of the property gave us a 30 day renewable permit to occupy the premises and assigned us to a new fuel supplier while they negotiated a long-term supply lease for all the gas stations they owned. East Hampton Getty is also a part of this process.
For over 22 years I’ve been an independent dealer. That means, I buy gas, mark it up and sell to you. I have to watch the market and be competitive or my volume will decrease as you all go elsewhere in search of better prices. But I also have to pay rent on the property, phone service, taxes, electric, insurance, and labor. My pump price reflects those costs. Since April, Alliance Energy Ltd, our new fuel supplier has provided gasoline for very high prices. I was unable to sell gas at a profit margin that would cover my costs. Therefore I lost money running the gas station.
Alliance Energy and Getty Realty entered into a 10-year lease on some 120+ properties in December. Alliance offered me a 1-year lease but would not commit to a lower rent or a sustainable gas price. No one was interested in buying the business, so I decided to close. That is why the Sag Harbor station is vacant.
But our repair shop continues! Paul, Clem, and Mike are now working in our East Hampton shop located at 139 Springs Fireplace Road. We hope to continue to serve our Sag Harbor customers. If you have any questions I can answer, please call me at 324 7707.