Proposed $1B resort in Calverton not dead, yet
An artist rendering illustrates the design concept for Riverhead Resort. Credit: Handout
The proposed $1-billion resort complex planned for Calverton - complete with an indoor ski mountain, a man-made lake and a resort hotel - has been given another month to come up with the money it owes Riverhead Town.
Riverhead Resorts has missed three payments that were required to extend the purchase contract with Riverhead. Tuesday, Riverhead Supervisor Sean Walter had prepared a resolution that would declare the contract to purchase the 755-acre, town-owned property terminated.
But after discussion, Walter agreed to give the firm another month to come up with the money it owes the town - about $6 million. The vote was 3-2 to table the resolution for one more month.
"This resolution is not required. This is my own doing. I wanted to turn the heat up on Riverhead Resorts," said Walter, who explained that the contract had expired once the company failed to make its $2 million payment for an extension in June.
But, he added, no one else is waiting to buy the property, and the town is already moving ahead on subdividing the land, a necessary step before it could be sold to anyone.
The project, first proposed two years ago, has encountered opposition from residents who complain it is too big and from environmentalists and state agencies worried about its impact.
Town Board member Jodi Giglio said some people had contacted her about purchasing the property at the town-owned Enterprise Park at Calverton, but that she has not met with them because of the commitment to Riverhead Resorts.
Mitch Pally, an attorney for Riverhead Resorts, said he has been talking to town board members for the past four days trying to get them to not take any action on the Riverhead Resorts contract. He said it has been difficult to complete the international financing needed to pay the town, but expects that about $4 million - to cover payments that should have been made in March and June - will be available the week of Oct. 18.
He said that he expects to negotiate a new payment deadline for the third $2 million payment, which was due in September, and to complete the purchase of the land by early next year.
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