Riverhead Town ‘ready to move forward’ on long-awaited sale of EPCAL property

The Riverhead Town Board unveiled a plan Thursday to potentially advance the sale of Enterprise Park at Calverton across the finish line.

“After discussions with council and the entire Town Board this morning in executive session, I believe the town is now ready to move forward,” Supervisor Yvette Aguiar said.

The Town Board in 2018 approved a potential sale of about 1,600 acres of town land to Calverton Aviation & Technology for $40 million, but it has been stalled at the state level as the town awaits permits to subdivide the property. The latest proposal would seek to address that subdivision issue.

“Today, we are hoping to move EPCAL forward by partnering with the Industrial Development Agency,” Ms. Aguiar said. 

Frank Isler, the attorney representing the town, said he was asked to find legal alternative methods to close the transaction with CAT.

He outlined the method he feels will do so. 

The proposal, presented at Thursday’s work session, would require CAT to go before the Riverhead Industrial Development Agency, and the town, in its roll at Community Development Agency, would transfer the land to the IDA, according to Mr. Isler.

CAT, which is controlled by Triple Five Group, would have to show the IDA that it has the ability to purchase and develop the land, or the deal could be terminated. 

Ms. Aguiar has frequently said the town could not simply terminate its current contract with CAT without potentially spending years in court.

CAT also would be required to spend $1 million on renovating the runways at EPCAL, and it would have to build out a million square feet of industrial and commercial facilities, as was called for in the current contract with CAT.

CAT also agreed to fund the cost of lights at the EPCAL ballfields and it agreed not to interfere with the bike path at EPCAL. 

The new proposal would require CAT to pay property tax on the land, and to have a payment in lieu of taxes. CAT also would have to preserve the 1,000 acres included in the contract by former Supervisor Sean Walter. Originally, the town only planned on selling about 600 acres.

The town would receive the $40 million from CAT upfront, if CAT receives IDA approval, Mr. Isler said. Officials didn’t specify what the amount of the PILOT could be. 

Ms. Aguiar said they town currently can’t transfer to any entity without the subdivision. Currently, the contract requires the town to obtain subdivision approval for CAT. The new proposal would give CAT that responsibility. 

Officials said the entire process could take six months. The entire Town Board supported the proposal and said officials with CAT also agreed with it. Officials from CAT could not immediately be reached.

The financial stability of Triple Five Group — which owns 75% of CAT — has been a concern in recent years. Last June, officials from CAT attended a work session at the Town Board’s request and tried to reaffirm that it has adequate money to buy and develop the property.