Riverhead Resorts fails to make down payment on land

For the second time in two weeks, Riverhead Resorts has failed to make a down payment on the land in Calverton where it wants to build a $1-billion themed recreation park.

But Mitch Pally, attorney for the developers, said that he expects to give the town $3.8 million toward the 755 acres by the end of next week.

"We've had conversations with the town board to explain to them the difficulty in getting all of this completed," Pally said.

"As you bring in more and more people into the financing, there is more and more due diligence . . . our goal is to make the payment next week," Pally said Wednesday, a day after Riverhead Resorts missed the payment. "They [the Riverhead town board] have been accommodating and patient."

But the town's patience may be wearing a bit thin.

The town attorney was to send a formal letter to Riverhead Resorts, pointing out that it has missed the payment deadline.

And Supervisor Sean Walter noted the town was already working to subdivide the town-owned Enterprise Park At Calverton - which must be done before a formal closing - and that it would make it easier to sell the property to another buyer, should that become necessary.

Riverhead Resorts plans to develop its recreation park in stages, with construction beginning in 2012 and the first sections opening in 2014. The developers missed a $1.9-million payment to Riverhead Town in March, and was to have paid another $1.9 million for a second extension two weeks ago.

The Riverhead Resorts project would be the biggest ever constructed in Riverhead. Originally proposed in 2007, it was to have opened this year, but has been delayed for a variety of reasons.

The most dramatic part of the application was for an indoor ski mountain, but the eight themed parks also included a hotel and conference center.