Craft’d, the popular downtown Riverhead bar, will close on Sept. 20 after Riverhead Town acquired the business’s lease this week through eminent domain.
A State Supreme Court judge on Wednesday granted Riverhead Town’s petition to acquire the leasehold interest held by SNR Bar 25 Corp., Craft’d’s operating entity, at 127 East Main Street. The order, filed with the court clerk Thursday, completes the eminent domain proceedings the town began in April. The law requires the government to provide “just compensation” to the owner of any real estate interest taken using eminent domain. The amount of “just compensation” remains to be determined.
Riverhead took title to the building subject to the company’s lease with the building’s prior owner, Riverhead Enterprises, when the town purchased the building for $2.65 million in 2021.
SNR Bar 25 Corp.’s 2018 lease with Riverhead Enterprises was for a five-year term, but gave the company’s options to renew the lease for two additional five-year terms, extending its right to possess the premises to November 2033 .
Riverhead therefore needed to acquire the lease before transferring clear title to the property to the company designated by the Town Board as the town square master developer. The master developer, an affiliate of the Ronkonkoma-based J. Petrocelli companies, plans to demolish the building and construct a new five-story boutique hotel with a restaurant, condominiums, and retail space on the site. The redevelopment project is a major part of the town square, considered by the town the centerpiece of its downtown revitalization initiative.
Town Attorney Erik Howard said in an email Friday that there is a settlement agreement “pending review by Craft’d’s counsel which will set forth the amount payable to Craft’d together with other terms and conditions.” He declined to comment on the terms of the agreement but added that both the town and Craft’d are working to resolve compensation for the lease without litigation.
In an email, Craig Blanchard, an attorney representing SNR Bar Corp., said the company is “still working with the Town on a compensation agreement but expect[s] it to be resolved soon.”
On Aug. 5, the Town Board authorized a budget adjustment for a $120,000 settlement offer to SNR Bar 25 Corp. in connection with the eminent domain proceeding.
Craft’d’s owners announced the bar’s closure in a Facebook post Thursday. “After 6 incredible years of cooking, serving, laughing, and sharing memories, our time here has come to an end due to the town’s decision to move forward with their project,” the post said.
“This bar has been so much more than a place to drink and eat. It’s been our home, your gathering spot, and the backdrop to countless first dates, birthdays, wedding after parties and reunions,” the post continued. “We’ve made lifelong friends behind the bar. And we’ve felt the love from this community every single day.”
“To our staff — our second family — thank you. Your passion made this place what it was,” the owners wrote. “To our guests — thank you for choosing us, again and again. Thank you for your stories, your smiles, your loyalty, and your kindness.”
Craft’d is owned by Sean Kenna and Robert Manolio, who also own and operate the downtown Italian restaurant Cucina 25. They have opposed the town’s eminent domain action, but did not challenge its legality in court. Kenna has said they have been trying to find a new location for Craft’d but noted that leasing costs in downtown Riverhead are high.
“This isn’t just the end of a chapter — it’s the closing of a beautiful book,” the owners wrote. “One that we’ll cherish forever.”
Kenna did not immediately return a call requesting comment.
Craft’d will hold a “Drink the Bar Dry” event on Saturday, Sept. 20, with discounted beers and drinks, a buffet and a DJ.
Earlier this month, the Town Board authorized and signed its agreement with the master developer, which intends to demolish the building by the end of the year and begin construction on the hotel in May, according to a project schedule presented last month. The developer aims to have the hotel open by June 2027.
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