Theme park developer gets more time to close on land

Riverhead's town board agreed to give Riverhead Resorts - developer of a proposed $1-billion themed resort park at Calverton - extra time to reach the next benchmark in its planned purchase of the 755-acre town-owned property.

The project, which would be the largest in the town's history, was originally proposed in 2007 and was to have opened this year.

But a number of delays, caused by red tape, changes in planning and the problems related to financing such a large project, have seen the schedule slip since then.

Wednesday, the town board extended the closing date on the property to June 15, the second extension on the project, after reaching an agreement with the developer. Original plans called for a closing on March 15, which had been changed to May 15.

To avoid extra charges specified in the contract should the closing and construction be delayed, both sides agreed to treat the closure later this month as if it had taken place on March 15.

And in a more immediate effort to deal with its budget problems, the town board approved an across-the-board cut of 5 percent in town spending. The action means scores of budget items now will be cut, although in an emergency the town board has the power to authorize extra funding.

Under planned cuts, the town clerk's office will have $10 less to spend on tapes to record board meetings, for example. The town attorney's office will have $78,875 less to deal with litigation and appraisals.

In all, the town trimmed $376,000 from its 2010 budget.

"We're getting there folks," Supervisor Sean Walter said after the unanimous vote.

Riverhead officials are concerned the town could face a $5-million budget gap because of rising costs, shrinking income and prior spending.