A new downtown restaurant and boutique hotel is coming to a historic building that has long sat in disrepair across from the aquarium.
Long Island Aquarium owner Joseph Petrocelli announced plans today to transform the 113-year-old house at the corner of Ostrander Avenue and East Main Street into what he believes will be “the number one restaurant on Long Island.”
The restaurant will span both floors of the house and offer outdoor patio seating and a koi pond.
In addition, he plans to construct a five-story boutique hotel behind the restaurant on the north side of the property with 20 guest rooms.
Both the hotel and the restaurant will incorporate historical elements of the building, which was built by a local Civil War hero, Henry Preston, in 1902.
“We intend for this restaurant to become the focal point of the fine dining and East End historical communities,” said Eric Russo, an attorney who represents Petrocelli and the Long Island Aquarium.
Petrocelli and Russo went before the Riverhead Industrial Development Agency today to request a public hearing for IDA benefits for the project.
When Petrocelli purchased the house in July 2014, he planned to tear it down and using the quarter-acre lot for parking.
But once he got inside the century-old building, Petrocelli fell in love with the historic home and decided to undertake its restoration.
Construction has been underway for months on the exterior of the building, which Petrocelli says is nearing completion. Work has not yet begun on the building’s interior or the proposed five-story hotel in the rear of the property.
Plans for the project are still in very early stages. Though Petrocelli hinted to board members today that both the restaurant and the hotel will focus on “upscale” and “unique” experiences, he had no further details about the project, including what kind of food the restaurant will serve.
He plans to work with local historical societies and scholars to enhance the project with the building’s rich history.
The cost of the renovation and expansion will total about $9 million, Russo said.
Petrocelli plans to request IDA benefits for the project, including sales tax exemptions, property tax abatements and mortgage recording tax exemption.
“I recognize this is a request for a third shot,” Russo said. “But it’s a continuation of the project that was the dream, the project you all took a risk on and has now developed downtown and enhanced where you wanted it to be.”
They spoke of the Preston House’s restoration as the third phase of the project that began with the Long Island Aquarium’s opening 15 years ago.
“We’ve already demonstrated that Atlantis and the Hyatt Hotel that we’ve created has become a generator and a focal point if you come here to the East End,” Russo said. “We want to embellish and enhance upon that so we can continue what’s going on downtown.”
Tax benefits from the IDA would help the project move forward, according to aquarium executive director Bryan DeLuca.
“The aquarium struggles financially,” he said. “Quite frankly, we are gasping for air.” He cited declining attendance rates and a lack of other attractions in downtown Riverhead to entice visitors from far away.
“The IDA benefits we’re asking for are crucial for us to be able to grow,” DeLuca said.
The Hyatt Hotel, which Petrocelli opened next to the aquarium in 2011, has helped keep the business afloat in the face of wavering ticket sales next-door. The Hyatt is regularly filled to capacity during the height of the season – one of the reasons Petrocelli plans to build the boutique hotel across the street.
“If it wasn’t for the hotel, we’d be out of business,” Petrocelli said.
The boutique hotel would supplement the Hyatt’s business, DeLuca said, not compete with it.
“Millenials are looking at uniqueness,” he said. “They don’t necessarily have the same affinity to brands that baby boomers do. They want uniqueness. They want experiences.”
A public hearing will be held on the project’s requested IDA benefits on January 4, 2016.
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