Riverhead Town Board takes surprise vote to authorize demolition of 127 E. Main Street as soon as next week

In a unanimous vote last night on a resolution that was not on its published agenda, the Riverhead Town Board set in motion the demolition of 127 East Main Street, which could begin by the end of this month.

The site is under contract for sale to a company owned by members of the Petrocelli family, the town’s designated master developer for the town square project. The two-story building on the property will be demolished to make way for a five-story boutique hotel and condominium project to be developed pursuant to a master developer agreement approved by the Town Board in August.

The resolution was taken off the floor on the motion of Council Member Ken Rothwell, seconded by Council Member Bob Kern. Because it was not on the meeting agenda, it was not included in the Town Board’s resolution packet posted on the town website.  As of this morning, neither the resolution nor the pre-possession and lease agreement it authorized has been posted online.

The resolution approves a “pre-possession and lease agreement and authorizes supervisor to execute same,” according to the title of the resolution, which was read aloud by Rothwell when he made the motion.

Supervisor Tim Hubbard acknowledged that the title is “kind of vague” and said the lease would allow the master developer to start demolition while the town earns some revenue from rent. Town Attorney Erik Howard clarified that the agreement actually allows Petrocelli access to 127 East Main before closing — not a lease of three parcels, as Hubbard suggested — in order to begin demolition and site prep this fall.

The sale can’t close until the town modifies the property lines by adding four narrow strips of adjoining land to square off the lot. Howard said the terms are laid out in the master developer agreement

“So this just allows that process to proceed,” Howard said. “And the hope is to have the building demolished and sort of get the site prepped for construction before the winter and the cold when everything would typically slow down anyway. This way in the spring, in keeping with the timeline that was explained at the qualified and eligible hearing, everything can get going,” he said. 

The building at 127 East Main is the last of three buildings the town purchased from Riverhead Enterprises for $4.85 million in 2021 for the town square project. The other two town square buildings were demolished in 2021 under a $965,000 contract with another Petrocelli company, which won the contract through a bidding process.

Master Developer J. Petrocelli Riverhead Town Square LLC will pay the town $2.625 million for the property, according to the master developer agreement, plus fees for easements and use of town property for construction parking and staging, as well as fees required by the pre-possession agreement. 

Petrocelli’s town square development plan calls for the construction of a five-story building, featuring 76 hotel rooms, 12 condominium units, three ground-floor retail spaces facing the town square, and a restaurant with a terrace overlooking the Peconic River.

MORE COVERAGE: Town square moves forward as Riverhead designates Petrocelli ‘qualified and eligible’

The plan — and the board’s decision to name Petrocelli as master developer — have drawn fire from critics. The criticism has ramped up during the current election season, with Democratic council candidate Mark Woolley being the most vocal critic among the candidates seeking to unseat the three incumbent Republicans seeking re-election: Hubbard, Rothwell and Kern.

At last week’s candidate forum, both Rothwell and Kern defended Petrocelli’s track record, citing his downtown investments,  including the Hyatt Place East End and Long Island Aquarium, restoration of the Preston House and Howell House into a boutique hotel and spa, and restoration of the East Lawn building.

At last night’s Town Board meeting, John McAuliff of Riverhead, a frequent Town Board critic and supporter of Riverhead Democratic candidates, renewed his criticism of the town square project and the board’s move to authorize demolition of the 127 East Main Street building days before the general election. At the podium before the board’s vote on the resolution, McAuliff argued that the property was “parkland” and that the building was historic and said the town should consult with the state officials  about whether it can be demolished or even whether it could be sold for development.

“So the town square property has never been designated by any official act of the Town Board as parkland,” the town attorney countered. “It’s never been represented as parkland. It’s always been intended for development into this town square,” Howard said. 

“Just to reiterate, 127 East Main Street was never parkland. It has always been a commercial building located in downtown Riverhead, and so it wouldn’t be subject to any kind of parkland analysis anyway,” Howard said. 

McAuliff argued his points for several minutes before the board vote.

“I think there’s a case to be made that you’re destroying a historic building,” McAuliff said.

“That’s not even remotely true, John,” Hubbard replied. 

“OK, well, at any rate, we have a disagreement on it,” McAuliff said.

“I don’t disagree with you. I’m just telling you what the facts are,” Hubbard said.

“I’m excited that the construction of the town square is beginning next week,” Rothwell said.

“I agree,” Council Member Joann Waski said.

“I’m very excited, and I can’t wait for this to start,” Hubbard said. 

Town Clerk James Wooten called the vote and the five board members voted to approve the resolution. 

McAuliff was back at the podium when the meeting was opened to public comments on any matter. He urged the board to delay the demolition until after the election, arguing it would show respect for voters’ wishes. Board members pushed back, saying their terms run through December and they have every right to act before then.

Demolition of the 127 East Main Street building could begin as soon as Oct. 30, according to the supervisor.