Riverhead Town Board kills Enterprise Park at Calverton deal

Riverhead's Town Board voted Tuesday to declare a $40 million contract to sell land to Calverton Aviation & Technology "null and void," a day after the town's Industrial Development Agency denied the company financial assistance to develop the Enterprise Park at Calverton property.

Riverhead legislators killed the deal with a 5-0 vote after calling a special meeting.

The legislators' vote came after the IDA said Monday that the venture group was not financially capable of developing a technology and aerospace hub at the former Naval Weapons Industrial Reserve Plant in Calverton.

For years, Grumman Corp. used the property it leased from the U.S. Navy to test military aircraft before closing down in 1996.

Town Supervisor Yvette Aguiar said after Tuesday's meeting that the town is ready to defend against any potential legal action.

“The IDA laid out all their steps and it was crystal clear that their decision was the right decision to make," she said.

The IDA's Monday decision, approved in a 3-0 vote and to cheers from a large group of project opponents at the meeting, gave the town board the option to void the contract to sell 1,644 acres to the venture group for $40 million to develop the EPCAL property.

A 2022 amendment to the original contract allowed the town to back out of the deal in the case of IDA disapproval.

A spokesman for Calverton Aviation & Technology released a statement after the town board's Tuesday vote that hinted at litigation. It said Riverhead officials "diverted the enormous economic future of Calverton and sent it to the court house for what will likely be years to come."

The statement added that CAT "has the legal right to develop this property" and Riverhead "has dismissed the opportunity to fast track the creation of a 21st Century economy."

Earlier Tuesday, CAT had fired back at the IDA in a separate statement, calling its decision to deny financial assistance "wrong and indefensible."

The company also said in that statement it was "confident" the Town of Riverhead would "continue to honor its contractual obligations."

The IDA's decision to deny financial help cited a lack of financial credentials, ambiguity over plans for the property and community opposition.

“Unless [the IDA] is advised as to what specifically is being proposed, the agency is unable to further process, much less approve, the application,” IDA vice chair Lori Ann Pipczynski said Monday.

“It was a totally responsible decision,” John McAuliff, coordinator of EPCAL Watch, a Riverhead-based coalition of community activists, said Monday of the IDA's decision. “The IDA was not prepared to risk its reputation on a project that was absurd.”

Plans the developers outlined last year showed a mix of industrial and aerospace uses at the site, estimating that building the first million square feet of development could cost $247 million.

They also referenced plans for a cargo airport that would complement proposed warehouse and logistics businesses, which drew immediate backlash from residents. Since then, Calverton Aviation & Technology representatives had attempted to assuage those fears, denying a cargo jetport was being considered.

The IDA on Monday also pointed to the developer's relationship to parent company, Triple Five Group, which owns several large shopping malls, including New Jersey's American Dream mall.

“The company has also attempted to distance itself from certain Triple 5 entities and actions,” the IDA's resolution said, referencing questions about lawsuits involving the company.

As the IDA denied the application Monday, the board room erupted in applause from more than 100 residents who packed in, some carrying signs that read “This is a bad deal” and “Runways will ruin Riverhead.”

In 1998, the federal government gave the EPCAL property to the town to stimulate economic development and offset the loss of tax revenue and jobs caused by the Grumman closure. Riverhead’s deal with Calverton Aviation & Technology had been pending since 2018.

Councilman Tim Hubbard said after Tuesday's town board vote that the property's zoning should be amended to be “ironclad” to not allow an airport.

Riverhead resident Mike Foley commended the board for backing out of the deal while speaking at Tuesday's meeting.

"It is never too late to do the right thing," he said.