Riverhead OKs mountain of a deal
By Mitchell Freedman
Jan 3, 2008

In the biggest real estate deal in Riverhead's history, the town has agreed to sell 755 acres of town-owned land in Calverton to Riverhead Resorts, which plans to construct a billion-dollar park featuring a man-made ski mountain.  Construction on the project, which must undergo an environmental review, is expected to begin in about three years with completion slated for 2012. The park would create about 2,000 year-round jobs, according to town officials.  In addition to the $155-million sale price for the land, Riverhead Resorts agreed to guaranteed payments of between $2 million and $16 million as the project goes through environmental reviews and a permit process that is expected to take from 23 to 36 months. Another part of the pact includes a proposal to return 15 acres to the town for park and recreation purposes.  Once the park is operating, Riverhead also would get 3 percent of gross revenue, as well as separate tax payments from the project and its hotel rooms.  The Riverhead Resorts proposal for the land at Enterprise Park features a 350-foot-high man-made ski mountain, an indoor water park, a sports resort, a white-water wilderness resort, a conference center and an equestrian resort. It would have about 2,200 hotel rooms and 2,000 timeshare units.  Morton Weber, attorney for Riverhead Resorts, said that, regardless of the economic conditions when construction begins, Riverhead Resorts has the financial guarantees to build the project.  "The financing is secure, and will be secure," he said.  Before the board voted, there was an hourlong public comment period on the resolution authorizing Supervisor Phil Cardinale to sign the contract. As in numerous previous hearings, a group of auto-racing enthusiasts who support an alternate development plan featuring three racetracks spoke against the sale.  But several town residents also came out and said they do not want the traffic and noise that weekend auto races would bring.  Dave Macknee of Riverhead said the idea of building a noisy racetrack near Long Island National Cemetery at Calverton was disrespectful.  "They wouldn't build a racetrack across from Arlington [National Cemetery]," he said.  Mark Lembo of Wading River, who a decade ago opposed the use of Calverton as an active jetport because of the attendant noise and congestion, said this was the same battle. "A racetrack is just a jetport on wheels," he said.  The board vote to authorize the signing was 3-2, with newly elected town board members James Wooten and Timothy Buckley voting against it.  Wooten said he had not had enough time to study the detailed contract. Buckley said a 7,000-foot-long runway at Calverton - left over from when Grumman Corp. used the facility to build and test F-14 Tomcat fighters - would be destroyed and replaced with a man-made lake.  He called it "an irreplaceable resource" that would be lost if the Riverhead Resorts project is not completed.

Issues the project must navigate

The Riverhead Resorts project in Calverton faces a series of environmental reviews and permit applications, which could take two to three years. They include: Environmental impact. Assessment of the 755-acre resort's effect on local wetlands and the nearby Peconic River.  Height waiver. Riverhead Resorts must get an exemption from the height requirements in the existing Riverhead building code for its proposed 350-foot man-made ski mountain. Riverhead Resorts officials have said that if such an exemption is not granted they would modify that part of the project to meet town height limits.  Sewer service. The county Health Department must approve the sewer system that will serve the complex.  Construction plan. The town Building Department must approve the site plan for the land and actual plans for construction.

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