CAT makes $500K deposit, signs contract on EPCAL property
Calverton Aviation and Technology has made a $500,000 initial deposit within the time frame called for in the agreement of sale between CAT and Riverhead Town, according to Supervisor Laura Jens-Smith.
CAT is proposing to purchase 1,643 acres of land from the town at the Enterprise Park at Calverton for $40 million.
“They signed the agreement and they deposited the money five days later into an escrow account,” Ms. Jens-Smith said.
The supervisor said she has also signed the agreement.
The Town Board voted Nov. 7 to declare CAT “qualified and eligible” under state law to purchase the site and carry out its intended development plan there, which includes technology and aviation uses. The Q&E designation is required in order to sell town land located in an urban renewal area, such as EPCAL.
Ms. Jens-Smith and Councilwoman Catherine Kent voted against that designation, which was approved in a 3-2 party line vote.
The previous Town Board had deemed the agreement of sale acceptable in a December 2017 vote, which also was 3-2, with former supervisor Sean Walter and former councilman John Dunleavy voting in favor, along with Councilman Jim Wooten.
CAT will now undergo a 90-day “due diligence” period to review all existing environmental and zoning studies of the property, and can undertake additional environmental studies itself.
The $500,000 deposit is part of the $40 million and will be released either at closing or if CAT fails to file a motion to proceed with the sale by the end of the 90 days.
The contract also allows CAT to request an additional 90 days to complete its due diligence, but that will require CAT to make a second $500,000 payment.
CAT says it plans to turn the area into a “world-class aerospace technology, innovation and high-tech manufacturing hub.”
