Calverton Aviation and Technology has now formally requested a 90-day extension of the 90-day “due diligence” period that was called for in the agreement to buy 1,643 acres of land from Riverhead Town for $40 million.
This means the original $500,000 deposit CAT made is now nonrefundable, and a second deposit of $500,000 will be made by the company and put in an escrow account, according to Riverhead Supervisor Laura Jens-Smith.
The original due diligence period was set to expire Feb. 20.
CAT has said it plans aviation, industrial and technology uses at the former Grumman site.
“It’s a complicated subdivision and, clearly, we have a whole bunch of things that have to get aligned,” said Stuart Bienenstock of Triple Five, which owns the majority of CAT.
“We’re going to be meeting with the Town Board in the next few weeks and have discussions about the recorded subdivision,” he said.
The town is required to produce an eight-lot subdivision of the property, of which only three lots will belong to CAT.
“We’re taking all the steps needed to ensure we can close in a timely fashion and do something that’s going to be meaningful,” Mr. Bienenstock said.
He said it would be impossible for the town or CAT to get the subdivision done within just 90 days. There are requirements from the state and county that must be met, he said.
The two $500,000 deposits will go toward the $40 million purchase price, Ms. Jens-Smith said.