Riverhead clears key legal hurdle at EPCAL site as court cancels property claim

The future of EPCAL is looking brighter after Riverhead secured another win in its longstanding lawsuit with Calverton Aviation & Technology over more than 1,600 acres of land.

The latest ruling — a March 24 order canceling a notice of pendency, a legal claim that had tied up the property — removes a key barrier, clearing the way for Riverhead to move forward with new development proposals.

The order by Justice David Reilly follows a major decision at the end of February in State Supreme Court in Suffolk County, where he dismissed 16 of the developer’s 17 claims tied to the canceled land sale.

Riverhead Town attorney Erik Howard said the March order further strengthens the town’s position in the case against Calverton Aviation & Technology, or CAT.

“The Judge’s unequivocal cancellation of the Notice of Pendency is another positive development in this case and further underscores the strength of the Town’s position in cancelling the Contract of Sale with CAT, whittles away at any leverage CAT has in the case going forward and drastically limits relief that can be pursued,” he said in an email Thursday.

CAT, headed by Triple Five Group, sued the town and Riverhead IDA in 2024 after officials canceled its 2018 contract to buy 1,644 acres at EPCAL for $40 million. The lawsuit prevented the town from marketing or selling the land for years.

According to the judge’s order, there would be “no remaining claims that would directly affect title to, or the possession, use or enjoyment of the property.” The decision also eliminates any remaining claims against the town Community Development Agency or the Riverhead Industrial Development Agency.

In a letter to Judge Reilly dated March 24, one of CAT’s defense attorneys Ronald Rossi called the notice of pendency cancellation “premature.”

Attorneys for CAT alleged in the lawsuit that Riverhead Town officials engaged with the town’s Community Development and Industrial Development agencies in a “scheme to evade Riverhead’s binding contractual obligation to sell 1,643 acres at the EPCAL property in Calverton to CAT,” the Riverhead News-Review previously reported.

The developer also claimed town officials were motivated by campaign politics, and the Town Board pressured the Riverhead IDA to deny its pending application approval.

But Judge Reilly found that Riverhead Town and its Community Development Agency “had a clear right to cancel the contract after RIDA failed to issue an authorizing resolution,” and that the action did not constitute a breach of contract or good faith.

One claim — tortious interference — remains, alleging town officials interfered with RIDA’s review process, meaning the case is not yet fully resolved.

Following the Feb. 27 ruling dismissing the other 16 claims, the developer filed a notice of appeal March 26 seeking to overturn that decision.

On March 30, Riverhead filed a cross-appeal challenging the decision to allow the tortious interference claim to proceed, according to court records.

In its cross-appeal, Riverhead argues that without an underlying breach of contract by RIDA, the town could not have interfered with contractual relations.

With the case now before the appellate court, a stay could delay enforcement of the order or keep the notice of pendency in place during the appeal.

As for possible new developments, Riverhead Supervisor Jerry Halpin said he has kicked around the idea of reviving a freight rail at EPCAL, the Riverhead News-Review previously reported.

John Turner, co-founder and current board member of the Long Island Pine Barrens Society, said he met recently with Mr. Halpin to discuss ways the town could potentially preserve parts of the vast property.

“You can have both — sometimes there’s this polarization between economic development and environmental conservation, EPCAL is so big and so diverse, you could achieve both,” Mr. Turner said. “We don’t think it’s an either-or proposition, but we do think that the town could preserve more than 1,000 acres there and still develop a lot of it and have that dual, mutually beneficial outcome.”