'New deal' draws near for Riverhead Resorts
Reduced price keeps mega-project in play for now
10 comments below
Riverhead Town and Riverhead Resorts are nearing a deal in which 755 acres of town-owned land in Calverton would be sold to the development group for about $108 million.
That's $47 million less than originally agreed upon for the huge swath of land at the former Northrop Grumman jet assembly plant site, where Riverhead Resorts hopes to build eight themed hotels and resorts.
The project has gained worldwide notoriety due to the inclusion of an indoor ski mountain, which at one point was billed as potentially the largest such facility in the world.
Under the newly proposed sales agreement, $100 million would go toward the land and $8 million would be earmarked for a community center and new animal shelter in Calverton, according to Mr. Walter and Mitch Pally, an attorney for Riverhead Resorts. That total price tag would also include nonrefundable payments Riverhead Resorts has already made to the town.
Riverhead Resorts originally went to contract with the town in early 2008 for $155 million, but late last year asked to lower the price, citing the weak economy.
The new price means the town will need to hold another public hearing to determine if Riverhead Resorts is a "qualified and eligible" sponsor, which is required under state law before the town can sell its Urban Renewal properties. The process aims at determining whether developers have the ability and financial means to carry out proposed projects. The town in 2008 declared Riverhead Resorts was qualified.
Mr. Pally said Riverhead Resorts is "committed to" finalizing the sale in calendar year 2010, as requested by Mr. Walter. If the deal doesn't close this year, town officials have said, Riverhead will face a budget deficit that could reach $7.3 million for 2011. Mr. Pally said Riverhead Resorts is working to finalize some details on its financing for the project, which he expects will be completed within a month.
"We made a commitment to the supervisor that we would close with the town on this deal in calendar year 2010, and we are working diligently to make that happen," Mr. Pally said.
As with the original contract, the revised contract still calls for the town to share in a percentage of the revenues generated by the project, Mr. Pally said.
Under the new deal, Mr. Walter wants to see the town get paid once the subdivision separating the land from the rest of the town-owned property in Calverton is completed. Under the original agreement, the town would not have received proceeds from the sale until Riverhead Resorts received all town and agency approvals needed to move forward with its project, which would be bigger than Disneyland in California.
"We've been working on the subdivision since Nov. 4," Mr. Walter said.
Mr. Pally said the specific details of the project, including the ski mountain, could change during the review process.
tgannon@timesreview.com
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10 comments found
calverton development : 5/15/2010
Reckler and Wang ( REXCORP) WWW.EPCALCENTRE.COM where originally going to give more money for their more forward thinking project.... that is until they lost an illegal closed biding war at town hall against riverhead resorts( who don't have the funding, (good stall tactic riverhead), not only that, but reckler and wang could actually write the check and not have it bounce back to the u.k. where riverhead resorts is from ( not a local or AMERICAN company) and have the experience with these type of projects. And to all you, self centered, old, simple minded, bigot's ,in these civic groups and the spineless local governmental officials who listen to their grumpy old "opinions" let the next generation have a say, most of you will be retired in palm beach or lying in a pine box before this snow mountain that will never be built gets underway.The island needs a fun place to go, some tax relief,and jobs. all of which this project would bring to long island, and by a local long island company. Portions of this project namley the MOTORSPORTS portion have been succesfully done all over this country, don't belive me check this out http://www.njmotorsportspark.com/ This was started and completed around the same time that rexcorp came up with it's proposal, the difference ....local governments and forward thinking minds prevaild. If all you local officials and local civic groups N.I.M.B.Y'S NOT IN MY BACKYARD'S would Get your heads out from your arses we would be having fun and making money already. Do some research.
new deal : 3/31/2010
what once seemed like an obscene offer before Walter was elected supervisor now is the way to go in order to keep revenue coming to the town coffers. Lets sell town hall and have the ones who represent us have meetings in the Library. Calling the offer an obscene offer before election is nothing more than vote baiting
calverton : 3/30/2010
More traffic, ARe you serious!!! its hard enough to make a left to the lie as it is
: 3/26/2010
I hope Riverhead reconsiders the motorsport and outdoors community of Long Island. We want to spend our money here close to home.
RIVERHEAD IS MY HOME : 3/26/2010
THERE WILL BE NO RACE TRACK IN RIVERHEAD. WE HAVE A RACE TRACK OR WHAT WE LIKE TO CALL A "CRACK" TRACK ALREADY.
GET LOST.
Supershafts : 3/26/2010
Give us our dragstrip you idiots. I'd be glad to bring a few poeple out and clean out the deer for you.
Stop : 3/26/2010
All the people of Riverhead will see from this nightmare is a higher homeowner tax. They will need more cops, More highway guys, more south of the border people loading up the schools with there anchor babies. And lets be honest, The illegal's will be the only ones getting jobs here(maids grounds keeper Ect). A few people will get rich and the rest of us will have to deal with waiting 25 minutes to make a left turn after this opens up. leave it to the deer!
Riverhead resorts deal : 3/25/2010
If Riverhead went with the very solvent Rechler Rexcorp deal the town of Riverhead wouldn't have taken such a finincial beating on this deal and the project would have probably been up and running by now suppling jobs and revenue for the town. Should have listened to the people but you can now blame that on Cardinale. Who's pocket does the dirt go in when they break ground?
Piss Poor : 3/25/2010
Join LIMOROTSPORTS.NET to fight the stupid people of riverhead.
Listen to one site for the truth LIMOTORSPORT.NET
We can fight the "guest workers"
We can fight the you know what bankers.
Letter to Editor printed by the Independant : 3/25/2010
LONG ISLAND MOTORSPORTS FACILITY NEEDED TO DETER ILLEGAL STREET RACING
Long Island has a rich history of legal safe organized Drag Racing. There were once three drag strips on Long Island Islip Speedway, NY National and Long Island Motorsports Park.
Long Island lost its oldest Drag Strip (Long Island Motorsports Park, Westhampton Beach) to developers in 2004. The Long Island Motorsports Park operated from 1953-2004. It was one of the first organized Drag Strips on the East Coast.
Currently there is no safe legal place to Drag Race on Long Island. Illegal street racing on Long Island is on the rise and is making our streets unsafe. On the other hand numerous accidents and lives have been lost due to illegal street racing.
Other parts of the country realizing that illegal street racing is on the rise have developed and instituted Drag Racing Programs within their communities. Programs such as Beat the Heat and Mother’s Against Racing in the Streets have proven to be excellent deterrents to illegal street racing. Local Police Departments and community members race each other in a safe fun family type environment.
A new Long Island Motorsports Facility will help promote awareness and keep our streets safer by deterring illegal street racing. Programs like Beat the Heat can be supported by the Suffolk County Police Department. The SCPD will also have the opportunity to educate drivers in a controlled environment.
The unused runways at the old Grumman Facility in Calverton would provide a safe legal environment for local Drag Racers.
Local Drag Racers are currently traveling to New Jersey and Pennsylvania to Drag Race. The expense, travel time and traffic are a burden to the local Drag Racers and their families.
In closing I would like to Thank You and your readers for taking time to listen to our cause and to sign/support our petition to create a new Long Island Motorsports Facility. Your support of our Petition will help deter illegal racing and help create badly needed jobs for Long Island.
Please be sure to include your Zip Code and any comments as this will send a direct message to our local elected Officials.
Long Island Motorsports Facility Petition Website: http://www.petitiononline.com/LI2010/petition.html
Petition can also be found on the LIDdragracing.com website under “Drag Racing on Long Island”.
Also please visit Websites LIDragracing.com. and limotorsports.org for more information.
