Riverhead revitalization advances after hotel wins key approval

A five-story riverfront hotel in Riverhead secured key approvals from the town board, clearing a hurdle for the redevelopment as officials unveiled a four-year timeline for broader revitalization goals this week.

The Peconic River Hotel is slated to include 94 rooms, plus a restaurant, cafe and street-level retail shops, according to the site plan. It will be built on the east side of the proposed town square, a public plaza that will connect Main Street to the Peconic River and feature a playground and outdoor amphitheater.

The town board approved a special permit and site plan for the project in a 5-0 vote Tuesday, paving the way for construction to start this fall. Officials said the hotel is a “catalyst” for downtown revitalization despite debate over parking disruptions it could bring.

Councilwoman Denise Merrifield said the hotel and town square will be a “tremendous asset” on Main Street. “It brings tourism, it brings local residents, and it also helps our commercial tax revenue,” she said at the meeting, adding that it would also attract visitors to businesses and downtown music venues.

Plans include nine parking spaces for staff on the lower level and the developer, Joe Petrocelli, plans to lease about 100 spaces in a municipal parking lot. Critics of the project said hotel guests using those spots would strain existing parking options and could negatively impact businesses downtown.

“Parking is certainly one of the most important elements of any successful downtown,” said Martin Sendlewski, who chairs the town’s parking district advisory committee. “We certainly don’t want to create a problem, especially since the garage is likely years off.”

The town plans to build a 500-car parking garage in the First Street parking lot using a portion of a $24 million federal grant awarded in 2024. A design phase for that project is set to begin this fall, but the project wouldn’t be completed until 2030, according to Riverhead Community Development Director Dawn Thomas.

Councilwoman Joann Waski pushed back against claims that local businesses could suffer because of the hotel parking arrangement and said a downtown parking problem is a good one to have.

“I appreciate that we’re at a point where we do need to build a parking garage because downtown is on its way to thrive, and we should all be happy about that,” Waski said during the meeting.

In an interview, Eric Russo, an attorney for Petrocelli, said construction is expected to begin in October, pending building permit review. Russo said the town’s Conservation Advisory Committee is also reviewing the project and an application for tax breaks is pending before the Riverhead Industrial Development Agency.

As the hotel nears construction, Thomas updated board members on other key components of the project during a work session on Thursday.

The East End Arts campus on Main Street will be redesigned as part of the redevelopment, with historic buildings on the campus to be moved and lifted to protect against flooding. Thomas said design plans are being finalized and the project could get underway this fall.

“They are very precious to the town and the East End Arts Council, so it's important that they get relocated as quickly as possible and as efficiently as possible,” she said.

Under the timeline, construction on the town square plaza and playground would begin next spring, followed by streetscape improvements on Main Street in the fall of next year. The hotel, town square and playground are expected to be completed in 2028.

Moving the arts buildings will create space for an outdoor amphitheater, which Thomas envisions hosting performances, outdoor markets and other events. Construction on the theater and parking garage would commence in 2028, and the overall project is expected to be finished by 2030.