Sept. 17 (Bloomberg) -- Dennis Suskind, a former Goldman Sachs Group Inc. partner, plans to convert a church in Sag Harbor, New York, into a residence. Hedge-fund manager Adam Sender wants the 19th century landmark to show his art collection.

The Sag Harbor United Methodist Church took Suskind's offer of ``under $3 million'' as it was the only one ``on the table,'' said church board Chairman Bruce Stafford, in a telephone interview. Sender said he didn't get the chance to bid -- he asked to meet church officials after his architects saw the building on July 19 and was told Suskind had contracted to buy it.

``I would have matched his offer and made it an art museum,'' said Sender, 38, a resident of nearby Noyack and owner of a $100 million contemporary art collection. The church could be a mini Tate Modern for the former whaling port, he said. ``Another residence is not what the Sag Harbor community wants for the church.''

The Sag Harbor Historical Society said the church ``should remain accessible to the people.'' A community group tried and failed to raise funds to buy the church, Stafford said. Sender, who said his Exis Capital Management Inc. of New York gained 22 percent in August after fees, still aims to rouse opposition to his rival.

The church has stood since 1864 on a half acre in the center of the town, which is near East Hampton. The building was put up for sale this year as the church community couldn't raise the money needed for restoration, Stafford said. A smaller house of worship will be built nearby for the congregation of 40 with the sale proceeds, he said.

Shopping Trip

On an Aug. 25 shopping trip to Sag Harbor's Main Street, Sender, in a sweatshirt and sneakers, solicited opinions at two antique stores and a nearby church.

``A gallery would be nice, but I don't think you can stop Suskind from building a private residence,'' said John Krug of the Sag Harbor Antique Shop, voicing a near-consensus.

``I'm sympathetic to the idea of preserving local buildings for community use,'' said Suskind, 64, who is president of the Hampton Classic Horse Show and was a Southampton councilman from 2001 to 2005. ``I encouraged uses like that when I was a councilman. But the church is in a residential zone, and there's virtually no parking for public uses.''

Moreover, Suskind stepped up to the plate first. ``The church was on the market,'' Suskind said in a telephone interview. ``A lot of people looked at it, and I signed a contract to buy it. That's how it works in the U.S.''

Suskind agreed to buy the church in July, and now is assessing the structure and the cost to convert it for himself and his wife, with room for his four children to visit. He wouldn't discuss the terms of his contract. Suskind must decide if he'll build his house by around mid-October, Stafford said.

Hirst and Prince

``Nowhere in the Hamptons is there a dedicated contemporary art museum on a large scale,'' said Sender, who owns 800 works, including a Damien Hirst fish tank and Richard Prince cowboy photographs. Sender is on ARTnews magazine's list of active collectors, along with hedge-fund managers Steven Cohen, Kenneth Griffin, David Ganek and Daniel Loeb.

Southampton's Parrish Art Museum specializes in American and Long Island art. The Guild Hall in East Hampton -- where billionaire investor Ronald Perelman, movie director Steven Spielberg and Jonathan Tisch, chief executive of Loews Corp., have homes -- mixes art shows and theater.

Making a museum in the church's crumbling 10,000 square foot interior may cost $5 million, Sender's architects estimated. Sender wouldn't say how Exis has fared for the year, though the financial market turbulence that hurt some hedge funds helped him, he said. ``Volatility has made my life far easier.''

Temperance Pledge

Sag Harbor, with about 2,300 residents, swells in the summer. The church, where sailors once came to pledge ``temperance,'' according to the Sag Harbor Community House Web site, sits close to the antique dealers, a five-and-dime store, a pharmacy and a real estate office.

``It's a very historic village,'' said Suskind, who was a Goldman partner from 1980 to 1990 after the investment bank bought the commodity firm J. Aron & Co., where he ran precious- metals trading. ``The church is the biggest building in the neighborhood, and I can walk to Main Street.''

To contact the reporters on this story: Linda Sandler in London at lsandler@bloomberg.net.

Last Updated: September 17, 2007 00:08 EDT