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Luminati meets deadline, contract negotiations will continue, supervisor says

07/17/2017 5:12 PM |

Luminati Aerospace met the first deadline Riverhead Town set on the pending purchase of  remaining land at Enterprise Park at Calverton, having submitted comments on the draft agreement the same day a new financial backer was revealed,  according to Riverhead Town Supervisor Sean Walter. 

Last month, the town gave Luminati until Monday to submit a final draft agreement for the $40 million sale, otherwise it’s letter of intent for the purchase would be dropped. The company on Friday submitted comments on the agreement , which the town’s attorneys hired to handle the agreement are “scrambling to figure the full breadth and extent,” Mr. Walter said Monday.

“At this point I think in principle they have met the deadline,” the supervisor said.

On Friday, John Catsimatidis, the billionaire CEO of New York City-based United Refining Energy Corp, announced in a press release that his company has expressed interest in providing Luminati with financial resources towards the purchase of the town-owned property. Luminati had reached out to Mr. Catsimatidis for assistance, UREC spokesman Nelson Happy confirmed Monday.

In the press release, Mr. Catsimatidis pointed to his own passion for aviation, as well as potential economic development and jobs that could stem from Luminati’s development at EPCAL as reasons for his interest in providing the wherewithal for the sale.

The billionaire is a pilot himself, Mr. Happy noted, and has logged 5,000 hours of flight time, although he has not flown for a number of years. Mr. Catsimatidis previously owned international airline Capital Air and a fleet of aircraft he owned and eventually sold served as the basis for fractional aircraft interests, such as NetJet, Mr. Happy said.

“He’s been a pioneer in those areas and is very excited about aviation,” Mr. Happy said.

With the advent of this new financial backer and approaching a qualified and eligible hearing as part of the vetting process in the negotiation, Mr. Walter said it seems that Luminati CEO Daniel Preston has met his “financial contingency.”

“I fully expect the board to proceed to continue with the contract and ultimately call for a Town Board public hearing,” Mr. Walter said. “I think everything is moving forward along well.”

Photo caption: Luminati CEO Daniel Preston at an event last month. (Photo credit: Krysten Massa)

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