Peconic River Hotel parking fight raises questions for Riverhead Town Square

The long-debated Peconic River Hotel moved closer to approval Wednesday night, but discussion of the $35 million Town Square centerpiece couldn’t get out of the parking lot.

The current site plan calls for nine parking spaces on the lower level 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.

At the center of the debate was a basic question: How can the Town Board move forward with site plan and special permit approvals without a completed parking plan and agreement in place?

“There are unanswered questions as to what the impact will be for leasing or delegating public parking spaces for private use,” said Martin Sendlewski, chair of the Riverhead Parking District Advisory Committee.

Patrick Lenihan, director of mobility at VHB Engineering, told the Town Board and attendees at the public hearing that the proposed valet area in front of the Peconic River Hotel can accommodate seven vehicles.

With the expectation that most guests will be arriving by car from the west, Mr. Lenihan suggested several routes guests could take to access the valet area. For example, if a guest arrives from the east on Main Street, Mr. Lenihan said the best route would be to turn down McDermott Avenue toward the Peconic River, continue down Heidi Behr Way to Peconic Avenue, and then turn at the intersection to arrive from the south.

He acknowledged that the tricky intersection mentioned is not ideal, but the goal is to find ways to notify guests of their options before they arrive.

“What we’re proposing to do is try to educate those folks as best we can on the website for the hotel, perhaps even when bookings are made, of a route they can take to arrive at the valet eastbound,” the engineer said. “Hopefully folks will visit us most often, and may only be confused once, as they make repeat visits to downtown Riverhead.” 

Mr. Sendlewski, who noted he would only be speaking as a resident and not on behalf of the parking advisory committee, urged the board to consider potential losses of Main Street parking spaces. He said under the current Main Street improvement plan, about 19 of the nearly 40 public parking spaces between Roanoke Avenue and East Avenue would be eliminated. 

Additionally, the parking committee previously recommended simple revisions to add back eight spaces, but the town board did not accept the proposal. The Riverhead Parking District No. 1, a special taxing district paid into by owners of property within the district, owns the First Street lot — not Riverhead Town.

He argued any agreement to reserve public parking spaces for private hotel use should face review by the parking district board of trustees, which consists of the current Town Board members.

Both Councilwoman Denise Merrifield and Councilwoman Joann Waski interjected during Mr. Sendlewski’s comments. They identified his involvement in The Zenith Group’s proposed apartment plan on McDermott Avenue that does not include on-site parking for residents or commercial customers. On-site parking is not a requirement within the public parking district. 

“I don’t think we’re discussing the parking garage, but you’re more than welcome to come back,” Councilman Kenneth Rothwell said. “I’m sure, eventually, if any local businesses want to contribute to be part of that parking garage project, you’re welcome to invest in it, rent spaces out and be a part of that.” 

Eric Russo, the applicant’s attorney, said an agreement is currently being drafted for the hotel developer to pay for the use of approximately 100 spaces behind The Suffolk. However, the attorney said the funding and construction of the public garage portion of the project falls on Riverhead Town, which is in the process of seeking grants and bond financing.

What is the Peconic River Hotel proposal?

Mr. Russo said the master developer agreement signed last August allows the developer to close on the project as long as the five agreed conditions are met. 

Most of the conditions are complete, including the demolition of the 127 E. Main St. building where Craft’D resided, the relocation of the East End Arts structures and approval of a lot line modification by the Riverhead Planning Board. Site plan and special permit authorization are key steps toward acquiring a building permit, and for hotel construction to begin.

“I’m very proud of where we are tonight, it took a lot of effort for us to get here,” Mr. Petrocelli said. “I think the momentum is going, and we need to keep it going.” 

The latest proposal calls for a 69,738-square-foot hotel on a 0.42-acre site at 117-127 E. Main St. 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, now proposes 94 rooms, with 80 guest rooms and 14 suites. Originally, the proposal included 76 hotel rooms and 12 condominiums, but the developer has since removed the residential units from the plan.

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 is to be affliated with Tapestry Collection by Hilton, a boutique hotel brand. 

The fifth floor would include the 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.

The total anticipated cost of the project is roughly $35.1 million, Mr. Russo said. Mr. Petrocelli is seeking $19.6 million in mortgage financing. A $1 million state Restore grant is earmarked for the hotel project, along with $14.5 million in private contributions from Mr. Petrocelli. Mr. Russo confirmed an application is pending before the Riverhead Industrial Development Agency, or IDA, for possible tax benefits.

Architect Andrew Giambertone noted the proposal presentations have gone through “numerous iterations” in the last four years. The “wedding cake” step-back style of the hotel in the current renderings reflects compliance with the town’s downtown Pattern Book, he said.

Conceptually, the Huntington-based architect said the overall design of the boutique hotel is meant to look like an adaptive reuse of the old Swezey’s building to remain consistent with the historic spirit of Riverhead’s Main Street. Brick material would make up the upper stories, while designers plan to incorporate an exposed steel look on the lower level.

“This did not happen overnight,” Mr. Giambertone said. “The revitalization success of Riverhead started with one act — the construction of the Riverhead aquarium, and one of the unique opportunities we see on Long Island, where somebody has put their money where their mouth is and made a difference in the community, and has stood by that commitment to Riverhead throughout the last 25 years.” 

Public hearing heats up

Some speakers expressed their support for downtown revitalization, but raised concerns about transparency in the site plan approval process, requested additional environmental analysis and questioned the cost-benefit of the hotel to taxpayers.

The hearing briefly veered into politics when Ms. Merrifield asked Laura Jens-Smith, who requested a full fiscal impact and cost-benefit analysis, if she spoke at the public hearing as the Riverhead Democratic Committee chair.

“I think the taxpayers of this town have a right to know that Mr. Jerry Halpin is the candidate the Democratic party has put up for election this year,” Ms. Merrifield said. 

After a tense back-and-forth, Ms. Jens-Smith responded: “You need to know what color underwear I’m wearing as well?” 

Peggy Kneski, owner of Riverhead Flower Shop, spoke in support of the hotel project and explained how it would benefit her Main Street business. 

“I am extremely pleased that Mr. Petrocelli is heading this,” Ms. Kneski said. “Everything that he has touched in Riverhead has done nothing but benefit Riverhead.” 

Ms. Waski expressed her frustration with the low attendance of residents at the public hearing — pointing out “11 people out of a town of over 36,000” in the room who were not town staff, members of Mr. Petrocelli’s team or members of the local press.

“Where is all the ‘we don’t want this,’” Ms. Waski said. “It seems like the same people that come to every single meeting, that are in the negative about anything that this board tries to do, they’re trying to point a finger, and say that we’re doing something wrong, our pockets are being lined…there is nothing more upsetting to me than to have somebody insinuate that over and over and over. How dare you?”

Roanoke Landing resident John McAuliff, who urged the town board to reconsider the hotel, responded to Ms. Waski’s comments on the low attendance.

“The reason they’re not here, frankly, is because they think it’s useless,” Mr. McAuliff said. “They’ll write you letters, they’ll sign petitions, but they don’t think you’re at all prepared to listen to an alternative viewpoint about the hotel.”

Written comments will be accepted for 10 days, through Saturday, June 20.