Riverhead Building Supply is moving forward with expanding its existing facilities at the Enterprise Park at Calverton.
The family-owned company, founded in Riverhead in 1948, plans to build a 123,000-square-foot warehouse and manufacturing facility on its 32-acre enterprise park site.
RBS Corp. President and CEO John Callahan and V.P. Kevin Goodale presented their plans to the Riverhead Industrial Development Agency board of directors Tuesday night at Riverhead Town Hall.
The company has outgrown its Mill Road, Riverhead facility, Goodale said. The new building would have rail access at EPCAL and would be adjacent to its existing 115,000-square-foot millwork and distribution center there.
The expansion represents a $5 million capital investment for Riverhead Building Supply, which was founded in Riverhead in 1948 by Goodale’s grandfather, Jesse. Riverhead Building Supply employs more than 500 people, Goodale said.
The company bought the site and built the millwork distribution center in 2007 with assistance from the IDA. RBS obtained financing for the project through the IDA and was granted a 10-year declining property tax abatement on the improvements at the site.
Riverhead Building Supply is not looking for new financing from the IDA nor is it seeking to extend its current tax abatement, which expires in four years, Goodale said. The company is seeking a new 10-year abatement on the new construction and a sales tax exemption on the purchase of the new metal building, he said.
The site plan previously approved by the town included the second phase of the project, which the company now plans to build out, Goodale said.
“We’re ready to go with the site preparation work as soon as weather permits and we’d like to place the order on the building as soon as possible, because that has a long lead time for delivery,” Goodale said.
IDA attorney Richard Ehlers said he would complete the necessary paperwork to allow the plan to be set for a public hearing on the first available date in March.
The company’s Mill Road facility will likely be sold, Callahan said after the meeting.
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