Riverhead Resorts asks town for extension on payments

Riverhead Resorts, the group seeking to build a multivenue entertainment complex at the former Grumman property in Calverton, has asked the town of Riverhead for a 30-day extension to make $3.9 million in already late payments to extend its right to buy the 755-acre property.

Mitch Pally, an attorney for Riverhead Resorts at Weber Law Group of Melville, said the 30 days is needed to resolve "technical" issues in securing loans with three Wall Street financial firms.

Town council members at a board meeting Wednesday were mixed on the idea."I say no more extensions," Jody Giglio said. Giglio wants to terminate the contract now, and put it out to bid to a new developer.

Councilman George Gabrielsen said he favored giving Riverhead Resorts more time. "This is a last shot," he said of the 30 days, noting the contract had already technically expired.

Supervisor Sean Walter agreed, saying the town would move forward on a subdivision of the land needed for the sale. "If they come up with the money, fine," Walter said. "This town is not in a financial position not to take that money."

The town was recently sent a letter from one of the financial backers of the project, Global Capital Markets, saying it was committed to lending Riverhead Resorts $25 million toward the $108 million purchase price, according to a copy of the letter shown to Newsday.

- MARK HARRINGTON