In 1969, Robert Matherson bought what was then a waterfront barrier island restaurant and converted it into an enormously popular nightclub: the "Oak Beach Inn", located in Oak Beach on Jones Beach Island, NY, was the original, and later just referred to as "The OBI". He later opened three more OBI nightclubs and named them according to their geographic location. The OBI North was in Smithtown, New York, the 'OBI East' near the Shinnecock Canal en route to The Hamptons, and the OBI West locations in Island Park, New York. All four clubs were located on Long Island and were wildly successful for many years, bringing people in from all over Long Island, New York City, Westchester, southern Connecticut and New Jersey and hosting acts such as Twisted Sister and The Good Rats. In 1979, Matherson sued the town to lease him more land for additional parking which the town granted. However two years later, new officials disagreed which caused Matherson to sue again and when the court favored with Matherson, the town granted him $3 million and the nine acres. In 1993, an unhappy Matherson actually started a "Move Out of New York Before It's Too Late" campaign complete with a hearse, banners and TV ads. A 1993 New York Times article provided more details about his campaign including that the New York State Division of Alcoholic Beverage Control raided the club one year earlier in 1992. One of the OBI West locations burned down after only a couple of years of packing in thousands on the weekends. Arson involving organized crime figures referred to in the movie Goodfellas was alleged but never substantiated. Over the years, the OBI was involved in many disputes with the local community over issues such as noise, parking and traffic. Finally, in 1999, Matherson sold the property to developer Ross Cassata, who planned to build condominiums, and moved to Key West, Florida to open a new club of the same name. When it closed, the inn's two-ton statues of whales and dolphins, which were commonly touched by clubgoers, were moved to Danfords on the Sound in Long Island. However, Cassata then sold the nine acres to Suffolk County for $7.95 million and the original property was torn down in 2003 and was replaced with a town-operated park, with later added plans of adding a bed and breakfast, upscale restaurant, boardwalk, water-sport area and boat ramp. The park now hosts activities such as car racing and has caused controversy in itself. At the time of demolition, the Suffolk County Legislator commented that the park agreement avoided "an enormous tax increase in Babylon, which would have had to pay a court judgment of as much as $20 million or watch its coastline be forever scarred by high-rise development" and the money came from the county's greenway program.
Locations
The original "OBI" was at 1 Oak Beach Road, Oak Beach, NY. The building was sold in 1999, torn down in 2003, land turned into a park with a small beach simply called "Oak Beach". The "OBI East" was at 239 E Montauk Highway, Hampton Bays, NY. The building is in ruins but is still standing. The "OBI North" was at State Road 25A, near Jericho Turnpike, Smithtown, NY. The building burned down in 1980, the land is now part of "Willow Ridge at Smithtown" HOA. The "OBI West" was at 3999 Long Beach Road, Island Park, NY. The building was torn down between 1994 and 2004, the land is now a school busparking lot. It later was briefly located at 50 Broadway, Island Park, NY as one of a series of famous nightclubs such as the "Shell House", "The Action House", "The Rock Pile", "OBI West", and "Speaks". Robert Matherson later went on to open "Oak Beach Inn" at 227 Duval Street, Key West, Florida. That establishment was only operating for a few years. Robert Matherson died in 2007.
Robert "Rosebud" Butt is credited with inventing the Long Island Iced Tea, while working as a bartender at the original OBI in the 1970s. In 2010 the Babylon-based rock band "Two Cent Sam" released the "OBI Song" and a DIY video celebrating the Oak Beach Inn's history and impact on Long Islanders and the void in Long Island night life after the "OBI's" destruction