Riverhead hearing on downtown hotel raises questions about parking plan

A five-story, 94-room hotel in downtown Riverhead would anchor a long-planned revitalization effort, attracting tourists to shop and dine on Main Street and spend time in a new town square.

But where will everyone park?

That was a key issue raised during a public hearing on the $35 million development at Town Hall Wednesday evening. About a dozen supporters and critics of the project spoke about proposed benefits and potential issues. The focus was whether the hotel development would strain already-limited parking in the downtown district with other ongoing construction projects and visitors flocking to the aquarium and theater.

The proposed Peconic River Hotel would be built on the eastern edge of the future town square by Joe Petrocelli, who Riverhead named master developer for the project last year.

It requires a special permit and site plan approval from the town board, which is accepting written comments on the plan until June 20.

Hotel plans call for a 69,738-square-foot building along with a 116-seat restaurant, coffee shop, retail shops and hotel lobby on the first floor and 94 hotel rooms and suites on the upper levels. A lower level would include nine parking spaces, laundry, trash and other components, according to the application.

Engineers for the project said there would be a parking area for about seven cars on East Main Street to allow guests to unload. From there, cars would be valeted to a public lot across the street behind The Suffolk theater.

Eric Russo, the developer’s Sayville-based attorney, said the developer is negotiating an agreement with the town attorney’s office to pay to use approximately 100 spaces in the lot until a municipal parking garage is built on First Street.

Several speakers hailed the hotel as a key step to inject new life into Riverhead. Peggy Kneski, who owns a florist shop on Main Street, said it would bring much needed foot traffic downtown.

“Everything that [Petrocelli] has touched in Riverhead has done nothing but benefit Riverhead,” she said on Wednesday. “It’s about time that we really look at this in a positive light.”

Petrocelli has worked on several downtown projects spanning 30 years, including the Long Island Aquarium, Hyatt Place and Preston House hotels.

“The momentum is going; we need to keep it going,” Petrocelli said during the hearing.

An earlier proposal called for a mix of 76 hotel rooms and 12 condominiums, but long-term housing was eliminated from the plan.

Russo said the hotel would operate under Hilton’s Tapestry Collection branding, described on the company’s website as a group of boutique hotels “rich in cultural charm and deeply connected to its destination.”

Others on Wednesday raised concerns about parking, traffic and the size of the building.

Desmond Wong, of Baiting Hollow, criticized the proposal for relying on future infrastructure.

“That is not a parking plan — that is a hope,” Wong said.

Developers said the building was designed to fit in with the current neighborhood and upper floors are set back to reduce visual impacts. But John McAuliff, of Riverhead, said the design resembles a “five-story box” that would block vistas of the Peconic River and sunlight to art galleries next door.

Several residents also criticized tax breaks the developer is seeking from the Riverhead Industrial Development Agency. Newsday has submitted a Freedom of Information Law request for the application.

Russo said the developers have requested a 20-year payment in lieu of taxes agreement and reductions in sales and mortgage recording taxes. He estimated the project would create 210 construction jobs and employ 26 full-time and 14 part-time  staff in the hotel, and also create 50 jobs across the retail spaces below.

Councilman Ken Rothwell said the hotel would take Main Street to the “next level” and help business owners and two downtown theaters.