Riverhead town board acts on $250G

In one of its quickest meetings ever, the Riverhead town board called a special session Thursday to approve a single resolution, one that puts $250,000 into the town's bank account.

"They'll call this the $250,000 meeting," said Supervisor Sean Walter.

In one way, the meeting was old business, going back to last October when Repcal Llc terminated its contract to buy 300 acres at the town-owned Enterprise Park at Calverton. Included in that contract was a penalty clause, giving the town $250,000 if the firm backed out of the contract.

Yet for three years, the fact that the money was sitting in an escrow account eluded town officials.

The town learned about the account a few weeks ago, and precisely who discovered the fund is already becoming mired in political controversy. Walter and former Supervisor Phil Cardinale -- Walter's opponent in November's election -- are both claiming credit.

Now, town attorneys and Repcal lawyers have reviewed the contract and agreed that the money should be released. All that was needed was Thursday's formal approval by the Riverhead board authorizing the supervisor to sign a release to future claims, which also permits insurer Chicago Title Insurance Co. to release a letter of credit to the town.

That was done so fast Thursday that the town board almost forgot to salute the flag at the start of its meeting.

Melville-based Rechler Equity Partners originally offered $35 million for the land in 2007, when it proposed constructing 2.5 million square feet of new industrial space. Town officials later agreed to drop the price to $18 million.

But the firm also wanted zoning changes, which the town refused to make, and it pulled out of the contract last October.

Meanwhile, in January, Riverhead officials hired a new consultant to study the demand for industrial and commercial property and recommend zoning changes, as well as doing the environmental reviews and other necessary work which would allow the Repcal land to be subdivided and sold by the town itself. That work was expected to take about 18 months.