Riverhead Town Board sets key hearing for advancement of town square project: July 1 meeting wrap-up

The Riverhead Town Board will hold a  public hearing on July 22 on whether the designated master developer for the town square project is a “qualified and eligible sponsor” for purposes of the New York State Urban Renewal Law in connection with the sale of town-owned property without a competitive bidding process.

A company owned by Joe Petrocelli, who has restored and/or developed various downtown properties, including the Long Island Aquarium, Hyatt Place East End, the East Lawn building, the Preston House and Howell House, was designated as the master developer for the town square in April 2022. 

Since then, the town has worked on additional designs and plans for the town square project and is now ready to move forward with the sale of town-owned property at 127 East Main Street to Petrocelli for redevelopment as a hotel and condominium units, and with the buildout of other features of the town square project that are to be undertaken by Petrocelli. 

But before the town can sign a contract of sale with the developer, it must determine that Petrocelli’s company is a “qualified and eligible sponsor.” The upcoming hearing allows the Town Board, as the governing body of the Riverhead Community Development Agency, to receive evidence of the developer’s qualifications to buy and redevelop the site.

Under the proposed master developer agreement released by the town this week, Petrocelli’s company will pay $2.625 million for the parcels on which his company will develop the hotel project. 

The town also plans to enter into a consulting agreement with Petrocelli’s company to perform the services of construction manager for other town square features, including an amphitheater, a playground, a public gathering space, walkways etc. for a fee of 7% of the total project cost for construction. 

The July 22 hearing is scheduled for 6 p.m. at Riverhead Town Hall. 

There will be a second public hearing on that evening to hear comments on the proposed transfer of a 2,784-square-foot piece of land north of Main Street from the Riverhead Public Parking District to the Town of Riverhead as part of the planned public parking garage project. 

Details of the master developer agreement will be the subject of an upcoming story.

In other action at its meeting Tuesday night, the Town Board:

• Granted a special permit and site plan approval to the Calverton Satellite Earth Station on Burman Boulevard within the Enterprise Park at Calverton. 

• Adopted a code amendment to require applicants for a permit to site a retail marijuana dispensary or on-site consumption lounge to file with the town a “Notice to Municipality” prior to filing an application for a building permit, special permit or site plan approval. The code amendment also requires the applicant to file a copy of its state cannabis license for the proposed premises within 90 days from the date the town issues an opinion letter stating that the proposed location complies with the requirements of the town code.

• Authorized a second request for proposals for the sale of 214 Griffing Avenue, Riverhead, one of the buildings the town purchased from Peconic Bay Medical Center, along with the building now occupied and used as Riverhead Town Hall.

• Authorized the town attorney to sign a retainer agreement with a law firm “to evaluate and pursue claims” against New York State, Gov. Kathy Hochul and others in connection with the Even Year Election Law.  Multiple counties across the state are appealing to the state’s top court an Appellate Division ruling that the legislation is valid and will take effect for elections in the current year. The parties are filing briefs with the Court of Appeals and the matter is scheduled for oral argument in September. 

• Approved a non-amplified live music performance by Dennis Cox at South Jamesport Beach on July 12 from 6  to 8 p.m., at the recommendation of the Riverhead Town Beach Advisory Committee.

• Approved fireworks permit applications from Island Water Park (July 5), Main Street Agency at Alive on 25 July 18) and Jamesport Fire Department (July 19.)