Ruling removes development hurdle for Enterprise Park at Calverton

A state Supreme Court justice has ordered the county clerk to lift restrictions on land within Enterprise Park at Calverton, which could allow Riverhead Town to pursue new ideas for the 1,600-acre property.

Calverton Aviation & Technology, a venture aerospace company, filed a lis pendens — a public record of a pending lawsuit — as it sued Riverhead for backing out of a $40 million deal to sell the property to the company in 2024. The notice effectively blocked the town from marketing or selling the land, since most buyers will not make offers on properties tangled up in litigation.

Justice David Reilly, in a March 24 ruling, directed the Suffolk County clerk to cancel the notice within 30 days, noting “there are no remaining claims that would directly affect title to, or the possession, use or enjoyment” of the site. The decision removes a hurdle town officials have previously cited as delaying action on the property intended to be an economic engine for the town, though attorneys for the aerospace group say they plan to appeal.

Town attorney Erik Howard said the latest development in the legal dispute is a win for Riverhead. Reilly previously dismissed 16 of 17 claims alleged in CAT’s initial complaint, and the company has since filed an appeal seeking to reverse the dismissed claims.

Howard, in an email Wednesday, said the cancellation “whittles away at any leverage CAT has in the case going forward and drastically limits relief that can be pursued.”

“More importantly, for the Town and the residents, it allows them to move forward with entertaining new proposals for development of the property,” Howard added.

Calverton Aviation & Technology proposed 10 million square feet of development at the former Grumman hub for aerospace, energy and academic tenants, noting in court papers that it would be a boon to the regional economy and pledged to invest $250 million in its first phase. The town board terminated the deal in October 2023 after the Riverhead Industrial Development Agency ruled the company was not financially capable of delivering its vision.

Ronald Rossi, a Manhattan attorney representing Calverton Aviation & Technology, said the company plans to seek a stay of the cancellation of the notice of pendency during the appeal process.

“CAT remains firmly committed to completing the EPCAL project and delivering good-paying jobs and lasting economic growth to Riverhead and the region,” he wrote in an email.

Reilly, in a Feb. 27 ruling, allowed one claim of tortious interference — that Riverhead improperly meddled in CAT’s contract with the development agency — to stand. Riverhead is cross-appealing in an attempt to dismiss that claim.

The case now moves to an appellate court, which could delay enforcement of the order while appeals proceed.

Riverhead Town Supervisor Jerry Halpin could not be reached for comment but previously told Newsday he wants to work with county and state lawmakers to revive a freight rail at the site using existing infrastructure. The $5.5 million rail spur was built in 2012 but never took off.