Riverhead extends deadline on Calverton land purchase

Riverhead Town has given Rechler Equity Partners, the firm that wants to buy and develop 300 acres of town-owned industrial land at Calverton, a 90-day extension on its potential purchase.

At a special meeting Thursday, the town board voted to modify its purchase contract, while Rechler Equities agreed to pay the town $125,000. The money is not refundable, but can be applied toward the eventual $18-million purchase of the property at the town's Enterprise Park at Calverton (EPCAL).

Rechler Equities had originally offered to pay $35 million for the property, on which it would be allowed to construct 2.7 million square feet of high-tech industrial space over 10 years, with bonuses given to the firm for early completion of the project.

But because of the downturn in the economy, the firm renegotiated the purchase price and will now pay $18 million for the land.

Riverhead Resorts, which has proposed constructing a $1-billion themed recreation park at EPCAL, is also behind schedule because of economic problems that have affected its finances.

Originally, the park was to have opened this year. Now, Riverhead Resorts hopes to begin construction sometime this year and to open the park in 2013.