Peconic River Hotel plans unveiled for Riverhead Town Square

The public got its first look at the latest plans for a 94-room boutique hotel proposed for Riverhead’s Town Square — a long-awaited piece of the downtown revitalization effort that is now moving into the town’s formal approval process.

J. Petrocelli Development Associates, the project’s master developer, presented plans for the five-story Peconic River Hotel at 117-127 E. Main St. during Thursday’s Town Board work session.

The latest proposal calls for a 69,738-square-foot hotel with retail space, a 116-seat restaurant, hotel common areas, amenities and lower-level parking. The project, which has been in development for eight years, previously included 76 hotel rooms and 12 condominiums, but the developer has since removed the residential units from the plan.

“The momentum has to continue,” Joseph Petrocelli said. “We’re at a point right now where if we don’t keep going, it’s never going to happen — we’re never going to turn this town around.”

The first floor would include a 5,100-square-foot restaurant with 20 bar seats and a terrace on the southern end of the building, an 818-square-foot, 20-seat coffee shop and 2,861 square feet of retail space opening toward Town Square. The plan also includes a hotel reception area, lobby, lounge/bar space, hotel kitchen and internal gym. The hotel would be affiliated with Tapestry Collection by Hilton, a boutique hotel brand, Riverhead News-Review previously reported.

The fifth floor would include 14 hotel suites, all of which would have a balcony or terrace. There are 26 guest rooms on the second floor, 28 rooms on the third floor and 26 on the fourth floor, with select rooms featuring terraces overlooking East Main Street.

A public hearing on the special permit and site plan application is set for June 10 at 6 p.m. The applicant is also seeking a foundation permit, which would allow construction to begin shortly after approvals are granted.

Eric Russo, the applicant’s attorney, said an application has also been filed with the Riverhead Industrial Development Agency, or IDA, and is pending approval.

The lower level would include nine parking spaces for hotel staff, along with laundry, storage, trash and mechanical areas. Guest and patron parking would be handled off-site through a valet system, first using parking behind the Suffolk Theater and later shifting to the planned First Street parking garage once it is completed.

Because the project is located within the town’s parking district, the developer is not required to provide off-street parking for the proposed uses.

Jeffrey Seeman, the town’s environmental consultant, raised questions about how the valet system would work, including whether it would be required or optional for restaurant and retail visitors. He also asked how hotel guests would arrive, unload and check in without obstructing East Main Street, particularly once downtown traffic-calming improvements are completed.

Councilman Kenneth Rothwell requested a more detailed site drawing to show exactly how the parking and valet system would function.

VHB environmental planner Christiana Kastalek reviewed the revised room count and told the board the project remains consistent with the town’s previous environmental review analysis and findings.

The current plan is also consistent with the town’s goals for downtown revitalization, including improving stormwater management, minimizing flooding impacts, enhancing pedestrian traffic and boosting economic development, Ms. Kastalek said.

The earlier SEQRA review allotted about 35,000 gallons per day of water and wastewater capacity for the prior version of the project. The revised 94-room hotel is expected to require about 20,000 gallons per day of potable water and discharge about 16,568 gallons per day of wastewater, according to the town’s environmental consultant.

Letters of availability from the Riverhead Water District and Riverhead Sewer District are still required before site plan approval. The Water District’s engineer said a hydraulic analysis is needed to assess the project’s impact on existing water facilities and that the project will likely require water main extensions. The Sewer District’s engineer said a separate report is needed to evaluate downstream infrastructure capacity, project impacts and any capital improvements needed for a sewer connection.

“The proposed project is consistent with the town’s Riverhead downtown revitalization project SEQRA assessment and would not adversely affect the environment or the surrounding area,” Ms. Kastalek said. 

Mr. Petrocelli, head of the 70-year-old family-run construction firm, has been credited with helping drive earlier pieces of Riverhead’s downtown revitalization, from the Long Island Aquarium to Hyatt Place East End to Treasure Cove Resort Marina. His company has also worked to preserve three historic buildings on Main Street, including East Lawn House, Howell House and the Preston House.

He brought the town board back to 1999, when the Petrocelli family “answered the RFP” for the Long Island Aquarium — an “economic generator” Riverhead “needed so bad” at the time, he said. However, he noticed many people would visit the aquarium, “look left, look right,” then go home. That pattern, he said, pushed his company to pursue additional downtown projects that would encourage visitors to stay in Riverhead longer. 

Town officials welcomed the latest plans for the long-awaited hotel, which they have viewed as a key component of the broader Town Square project.

“Downtown needs to be activated, and bringing a project like yours into the mix here helps everybody,” Councilwoman Joann Waski said. “You’re not a developer that just came and built something, and went away — you’ve been invested, you’re here.”

Mr. Russo said the project complies with the town’s zoning requirements, allowing the applicant to seek a building permit without a zoning variance if approvals are granted.

“You’re now on the precipice of moving forward with a project that can continue to be the firecracker that lights off everything you want to do in the downtown area,” Mr. Russo said.