To the Editor:
The Riverhead Industrial Development Agency is again considering granting a developer a 20 year property tax abatement in order to build a new hotel at the Riverhead Town Square. The proposed assistance, including $1.5 million in sales tax and mortgage tax exemptions, could amount to $35.15 million dollars according to two local news outlets.
This $35.15 million is not a small number. In the application filed with the Riverhead IDA by Petrocelli, the developer, this assistance is required. The project application cites extraordinary up front costs, high interest rates and operating expenses. Without the requested financial assistance, the project is not economically viable and might not proceed.
And what does the Town of Riverhead gain by supporting this project? Per their proposal there will be 54 full-time jobs and 10 part-time jobs with a payroll of $2.46 million. This sounds like a great boost to the Riverhead economy, but the math doesn’t work out that well.
Assuming 10 half-time jobs account for 1 position, make the total 59 full-time jobs. $2,460,000 divided by 59 is $41,695. Suffolk County minimum wage is $17.00 per hour – 40 hour week = $35,360 a year. If 8 employees are managers and supervisors make a livable wage, 50 people are working in minimum wage jobs.
Also the Town Board has agreed to provide 90 parking spaces for this hotel that will only have on-site parking for 6 employee vehicles. Hotel valet parking may be on the north side of Main Street, and eventually Riverhead may have to build a parking garage. This will be an expense that will fall on Riverhead Town taxpayers. Perhaps the entire project is not financially viable, and perhaps it should not proceed.
Melinda Topping
Riverhead
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