Riverhead officials settle suit with Scott’s Pointe

Island Water Park Corp., the operators of Scott’s Pointe water park in Calverton, has agreed to pay $50,000 in civil penalties to Riverhead Town for illegally building a go-kart track, pickleball courts and using a designated second floor office space as a party room without authorization.

The water park operator also plead guilty to violating certain sections of Riverhead Town code and paid $5,700 in fines, according to the settlement document.

Riverhead Town took legal action in July against Scott’s Pointe — also known as Island Water Park — asking a state Supreme Court judge to shut the facility down, force the owners to dismantle attractions built without proper permitting, including the pickleball courts and go-kart track, and fine the company at least $100,000, according to the initial complaint.

The Riverhead Town Board granted final site plan approval with conditions in Feb. 2022 to allow Scott’s Pointe multiple uses, including the construction of a two-story commercial building with the first floor dedicated for retail and entertainment, such as an indoor surf pool and arcade area, according to court documents. The second floor was to be used for office space and storage only, with no other occupancy without corresponding approvals.

The 19-acre man-made lake was originally approved for use by a water skiing club, the complaint stated. It was also noted in the document that the New York State Department of Environment Conservation prohibits the use of gas-powered motor boats in the lake. At the time, Island Water Park Corp. proposed implementing a rope-tow water ski system and using non-motorized water sport vehicles, including canoes, sailboats and kayaks.

Riverhead officials previously said that Island Water Park Corp. received some required approvals but not others for work on the 42-acre property — but went ahead with developing the entire property anyway. The go-kart track and pickleball courts are on land that was supposed to remain wooded, according to the complaint, which called for the owners to return the property to its “pre-violation status.”

The legal rift between the town and Scott’s Pointe started when a video was posted on social media illustrating motorized race cars on an asphalt track speeding through what had been designated as the “wooded area” on the approved site plan, the complaint said. The town also alleged that the second floor permitted for office and storage space was being used as a “party room.” These complaints led to an investigation of the premises.

Due to the pending litigation, the Riverhead Town Board voted on Dec. 17 to postpone a public hearing set for Jan. 22 regarding the Scott’s Pointe water park. Four council members also voted yes to go forward with the SEQRA review, while Councilwoman Denise Merrifield voted against the resolution, calling it a “contradiction” to the pending lawsuit.

She noted at the time that Scott’s Pointe also still owed the Town nearly $70,000 for the construction of an emergency access road. The water park operator had agreed to pay the full amount to Suffolk Paving Corporation for the work, according to the settlement.

Scott’s Pointe has submitted an amended site plan since the lawsuit was filed, which seeks legalization of the go-kart track, pickleball courts and conversion of an existing interior storage space for use as a catering and event space. If the revised plan is abandoned or not approved within 18 months, Island Water Park Corp. agreed in the settlement to remove the go-kart track and pickleball court and restore the wooded area. That restoration would have to be completed within 90 days.

Ms. Merrifield was the only town board member to vote against the resolution on Tuesday to authorize the settlement and said $50,000 was not an “efficient” payment for the violations. She also stressed the need for stronger punishment for repeat code violation offenders, such as Scott’s Pointe.

“I wish that we had followed through with this lawsuit and forced them to tear up the pickleball courts…the go-kart track, that they would learn a lesson: don’t continuously violate our town code and just pay a fine afterwards,” she said. “I don’t agree that $50,000 is a sufficient amount for what they’ve done and I do feel that moving forward that repeat offenders need to know that you’re going to pay heavy consequences for your actions.”

Riverhead Town Supervisor Tim Hubbard agreed with Ms. Merrifield, but said continuing litigation would have cost the town more money and that the eventual ruling may not have gone the town’s way.

“There’s never a guarantee in a court action that it’s going to fall into our favor,” Mr. Hubbard said. “It was never an intention to shut down Island Water Park, but it was an intention to send a strong message out to developers who think they can come into town and do what they want to do and ask for forgiveness later — I think a $50,000 hit is not quite sufficient, but I’m willing to live with it.”

The amended application was listed as a resolution at a Riverhead IDA meeting held on Dec. 2. At the time, Tracy Stark-James, executive director of the Riverhead IDA, did not find the application “completed” or “satisfactory enough” to accept it.

Ms. Stark-James said the main outstanding item was the applicant’s updated budget. She and Alison LaPointe, attorney for Island Water Park, then agreed to table accepting the amended application until more information is provided.

The amended site application was accepted for review by the Riverhead IDA on Monday night. Ms. LaPointe said an updated budget has been provided to show what has been added and removed in the plan, as well as more accurate job creation projections.

She said the applicant is expecting town approvals in mid-March or April. A new public hearing date has been rescheduled back to Wednesday, Jan. 22 by the town board.

Editor’s Note: This article has been updated with a public hearing date for Scott’s Pointe.