After contentious debate, split board gives Riverview Lofts final site plan approval

In an often contentious meeting yesterday afternoon, the Riverhead Town Board gave final site plan approval to the biggest residential development approved for downtown Riverhead in many years.

Riverview Lofts, a five-story, mixed-use development on McDermott Avenue and East Main Street gained final site plan approval today, over the strong objections of a lawyer for Dark Horse Restaurant owner Dee Muma and a newly formed advocacy group calling itself Riverhead Business and Citizens for Sustainable Development.

Muma’s attorney Carolyn Zenk argued that the town board was proceeding in violation of the State Environmental Quality Review Act in its review and approval of the 116-unit Riverview Lofts development proposed by Georgica Green Ventures.

“This is a huge project and this is segmented review,” said Zenk, an environmental advocate and former Southampton Town councilwoman. “That’s illegal under SEQRA,” she said.

Zenk offered her initial comments during hearings convened on Riverhead Sewer District and Riverhead Water District improvements proposed to accommodate the project, to be made at the expense of the project sponsor. She spoke on a myriad of issues, over the repeated objection of Supervisor Sean Walter, who urged her to limit her comments to the subject of the public hearing, the sewer facilities. Zenk, who did not attend the site plan and special permit hearings held by the town board on Aug. 1, insisted that the board’s “segmented review” allowed her to speak to other issues during the sewer district hearing.

Zenk criticized the town’s previous determination that the project would have no significant environmental impact and would not be subject to full environmental review. The applicant produced a “voluntary draft environmental impact statement” but the town board held no scoping meeting or public hearing on the voluntary EIS.

The Hampton Bays attorney said the notice of proceedings given by town board were “radically inadequate” and would not stand up to judicial review if an Article 78 proceeding were brought against the town. “Article 78” refers to a petition brought under Article 78 of the N.Y. Civil Practice Law and Rules asking a court to review an action or decision of a government entity.

Ian Lyons, speaking on behalf of the new Riverhead Business and Citizens for Sustainable Development, complained that the town had not provided adequate notice of yesterday’s hearing and criticized the town’s “lack of transparency.”

“I’m here to implore you to do a truly independent environmental analysis, not one produced and financed by the applicant,” Lyons said.

David Gilmartin, attorney for the project sponsor Georgica Green Ventures, told the board that the proposal is “an as of right development and that must be understood by anyone who’s doing review.”

Repeated complaints about the small number of on-site parking spaces — 55 — indicated on the site plan are unfounded, Gilmartin said. “This site is in the public parking district. No parking is required,” he said. Riverhead town code exempts properties within the downtown parking district from any off-street parking requirements; property owners in the parking district pay a special district tax to provide municipal public parking areas. The adequacy of available municipal parking has been a subject of intense debate and a recurring complaint of downtown business owners.

“We went through the full SEQRA process,which we think was over-reaching,” Gilmartin contended.

“We’ve heard some veiled threats and some not-so-veiled threats that someone’s going to bring an Article 78,” he said. “When they do that they may jeopardize funding the developer has received.” Gilmartin said anyone bringing such a lawsuit would be “required to post a bond in the neighborhood of $50 million — and you’d better be right.”

The town board did not rule on the sewer or water district improvements yesterday, but it did grant final site plan approval for the development — in a split 3-1 vote, with Councilman Tim Hubbard dissenting and Councilwoman Jodi Giglio abstaining on the advice of the town ethics board. (Giglio is part-owner of the Summerwind Square mixed-use development on Peconic Avenue.)

The board approved a special permit for the project at its last regular meeting on Aug. 15, when it also granted Riverview Lofts preliminary site plan approval. (See prior story.)

In addition to the applications for the sewer and water district improvements, Georgica Green Ventures also has pending an application to the Riverhead Industrial Development Agency.

The developer is seeking a 30-year partial property tax abatement — rather than the standard 10-year abatement typically granted by the IDA.

Georgica Green managing member David Gallo told the IDA board during a July public hearing that the 30-year New York State-backed bonds providing the bulk of the financing for the project require an IDA pilot agreement that lasts as long as the finance period.

Gallo said he has pulled together “roughly $52 million in sources of funds” to build the project, including redevelopment money for sites damaged by Superstorm Sandy.

Georgica Green’s IDA application drew sharp criticism from members of the community during the July hearing.

The IDA was not able to act on the application until the town board closed the State Environmental Quality Review process. That came with the town board’s SEQRA determination of non-significance on Aug. 19. The IDA’s first meeting after the SEQRA determination is scheduled for Monday, Sept. 11 at 5:00 p.m. The published agenda for Monday’s meeting posted on the IDA website  does not as of this date state that the IDA board will take up any matters relating to the Georgica Green Ventures application, though under “new business” the agenda states “Consideration of Financial Assistance GG (tentative).” 

Editor’s note: This article has been amended to add the IDA agenda reference to “Consideration of Financial Assistance GG (tentative)”