Calverton Aviation & Technology is ready to close on its $40 million land deal with the Riverhead Town Community Development Agency and move forward with the development of the site, according to the company’s attorney Christopher Kent.
The Triple Five affiliate has submitted two letters in response to the town’s recent request for updated financial information to supplement its previous submissions.
One is a letter of interest from a New York City private lender, Midnight Capital, stating that it will consider providing $120 million in construction funding for CAT’s proposed development.
“This represents all the financing we need to close on the purchase and develop the first million square feet,” Kent said in an interview this evening.
The other letter is from Arieli Capital, a U.S. and Israel-based business development and investment company that operates in the technology sector.
Triple Five, the majority owner and managing member of CAT, is an investor in Arieli, Kent said.
“They’re going to be developing the site together as a technology hub,” he said.
Both Arieli and Midnight Capital are new to the project and were not part of the presentations CAT made during its qualified and eligible sponsor hearing.
CAT’s “intent is to utilize all the expertise available to them to build a successful technology hub at Calverton,” according to Kent.
Arieli said in a letter to the town dated May 18 it has “experience and prior success in developing these types of synergistic technology hubs.”
“We can assist CAT in identifying and attracting prospective businesses to establish local presence at the CAT Hub at EPCAL,” Arieli wrote in a letter signed by its CEO Evan Renov.
“With Triple Five as one of our major investors, we are prepared to develop an innovation technology hub at CAT Hub at EPCAL in the Town of Riverhead,” the company wrote.
“By joining the financial strength, planning and construction expertise of Triple Five with the proven ability of Arieli Capital and its affiliates to attract investment, develop innovative technology centers and companies focused upon global solutions to next generation issues. Accordingly we believe the CAT Hub at EPCAL will become known as a world leader in research, development and field testing of next generation technology located in the Town of Riverhead.”
“This is very exciting,” Kent said.
“The town appreciates CAT’s timely and voluntary submission of these documents and the Town Board will immediately begin a thorough review of these records,” Supervisor Yvette Aguiar said in a press release this evening.
Before Riverhead can close the deal, it needs to finalize a land subdivision creating three large lots comprising the 1,644 acres under contract to be sold to CAT. In order to finalize the subdivision, the town needs to obtain approval from the State DEC of a permit under the State Wild, Scenic and Recreational Rivers Act. The town also needs to obtain subdivision approval from the Suffolk County Department of Health Services. The town has made application to both agencies for approval. The applications are currently under review.
Under the terms of the contract of sale, the town had one year from its receipt of the purchaser’s “notice to proceed” to closing to file a final subdivision map with the county clerk. The one-year time period expires tomorrow. The contract says if the town cannot meet the filing deadline, either party may cancel the contract. Neither the town nor CAT has expressed any interest in canceling.
“We’re ready to close. We’d like to see the town move forward,” Kent said tonight.
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