Riverhead town board members walk out on developers

Two Riverhead town board members walked out of a meeting this week with the principals of Riverhead Resorts, which owes the town $3.9 million.

"I only have one question. Did you bring a check?" asked Councilman George Gabrielsen, who - along with Councilwoman Jodi Giglio - walked out of the Wednesday meeting, saying it was "a waste of time."

Riverhead Resorts, which wants to build a $1-billion themed resort park on what is now 755 acres of town-owned land, promised Supervisor Sean Walter during the meeting that the $3.9 million would be paid by Nov. 3.

Walter said he would use the payment to shore up the town's reserve fund.

Riverhead Resorts bid $155 million for the property in 2008, but the price was later reduced to $108 million because the sluggish economy reduced the value of the undeveloped land.

Walter said Riverhead has agreed to take $108 million next year if the contract is signed. "That's $146,000 per acre. That's a very good deal for the town," he said.

When Riverhead Resorts made its first $4 million down-payment in 2008, construction was expected to begin in 2010 and the resort was to open in 2013. Instead, there have been several delays and Riverhead Resorts is behind on two payments totaling $3.9 million to extend the contract.

John Nevin, a developer of the project, told the town board he had already made a substantial financial commitment to the project. "I've put in $18 million . . . I drained both of my companies to keep this dream alive," he said. "This project will happen."

Riverhead Town Councilman John Dunleavy, who sat through the meeting with Walter, said he hopes the payment will be made. "We [the town] have nobody else out there," he said.