Riverhead IDA allows tax breaks to continue for Scott’s Pointe

Following Scott’s Pointe final stamp of approval from the Riverhead Town Board on its amended site plan, the Riverhead Industrial Development Agency voted on July 7 to maintain the company’s tax benefits.

Island Water Park Corp. got the official authorization for its already-built go kart track and pickleball courts, as well as permission to convert an interior storage space into a catering and event room. Despite violating its initial 2021 agreement with the Riverhead IDA, four out of the five members voted to approve the revised site plan and allow the continuation of its 10-year property tax reduction. The company’s previously received sales tax and mortgage recording benefits will also remain the same.

Tracy Stark-James, executive director of the Riverhead IDA, said Island Water Park Corp. reported the scope of the project had changed, which is why they were seeking approval from the agency. The company is not seeking additional benefits, however, the capital investment in the project has increased from $25 million to $38 million, according to the amended application.

The projected employment numbers were also significantly reduced, Ms. Stark-James said, as their original job creation projections were “overzealous.” According to the 2024 document, Scott’s Pointe currently has 26 full-time employees, 161 part-time employees and 75 full-time equivalent employees — a total of 262. In its initial 2021 economic impact analysis, the operator projected 345 full-time equivalent jobs and 420 part-time/seasonal positions. In its second year of operation, the company predicted 46 full-time jobs and 189 part-time jobs.

Lori Ann Pipczynski, one of the Riverhead IDA board of directors, was the sole dissenting vote to approve the amended application. She said she did not support the application when it was first presented in 2021 and her concerns at the time included the company’s proposed “unrealistic job creation projections, the nature and pay scale of most proposed positions, and the minimal direct or indirect impact to the town.”

In the original 2021 application and at the closing, she said the water park operators signed documents affirming compliance with IDA incentive requirements — including making timely PILOT payments, submitting required reports by established deadlines and abiding by federal, state and local laws, such as zoning codes and regulations.

“Unfortunately, the applicant has repeatedly failed to meet these obligations. This includes consistent delays in submitting compliance reports and PILOT payments, as well as multiple violations of the applicable zoning and environmental laws and regulations,” Ms. Pipczynski said. “Given this track record, I have little confidence that the commitments outlined in an amended application would be honored.”