Monday, April 24, 2023

A Summary History of the EPCAL Deal

 

A History of Riverhead’s EPCAL Misadventure with Luminati, 

Calverton Aviation and Technology (CAT) 

and the Ghermezian Family (Triple Five)

 

1)  In 2017 over one thousand environmentally sensitive acres were added to a proposed sale of 600 acres to Luminati Corporation, owned by the late Daniel Preston, absent significant public discussion by the 100% partisan but divided Town Board.  The new contract also included two massive runways that had not previously been a part of the deal.  There was no increase to the $40,000,000 sale price.  After Mr. Preston’s resume and financial backing were exposed as fictitious, he abandoned Riverhead, leaving behind debts and unfulfilled commitments.

2) The Ghermezian family operating through corporate entities of Triple Five suddenly appeared, taking advantage of the special deal given to Mr.  Preston in a contract approved at the final meeting of that Board.  Although purporting to follow Preston’s development plan and make use of his reputed scientific expertise, Triple Five marginalized him as a 25% non-voting partner in CAT and to avoid further embarrassment paid his debt to the town. The original corporate structure for the development group was replaced without a new letter of intent.

3)  The next Board’s 3-2 partisan majority decided that CAT was Qualified and Eligible to purchase EPCAL without public financial disclosure because Triple Five is privately owned by the Ghermezian family, the 75% partner. (2018-2019)

4)  The majority depended on the vote of a Board member who had met privately in New York with representatives of the Ghermezian family.   Our appeal to the Town Ethics Committee to require her recusal based on conflict of interest failed on the grounds that a Riverhead Board member was not constrained by State hearing ethics guidelines

5)  The partisan majority refused to consider the history of the Ghermezian family in alleged corruption in Las Vegas, its hard ball politics in a Miami mall project and massive political donations in New Jersey to obtain permission under Governor Christie to build the American Dream mall west of the Hudson River.

6)  The successor even more partisan 4-1 Board (2020-2021) and the Riverhead Chamber of Commerce gave credulity to two Israeli companies introduced by the Ghermezians that would solve their financial and technological development problems.  These companies also were discredited and have completely disappeared from further discussions.

7)   The previous one sided and current single party Town Board (2022-2023) would not address seriously the financial crisis facing the Ghermezians because of the debacle and deep indebtedness of the American Dream mall.  Board members have accepted uncritically over the past six years CAT’s rationalization of the separation of Triple Five linked corporations controlled by the family and thus of any negative financial impact on EPCAL’s future development.  They ignored the alleged criminality of a family company’s sale of counterfeit chemically dangerous sanitizers during covid.

8)  Rather than exercise its authority to terminate a contract disparaged by the supervisor herself, in an effort to circumvent DEC permit regulations the current Town Board concocted a leasing scheme to turn over its authority to the Riverhead Industrial Development Agency.  The inherent problems in that arrangement are outlined in opinion pieces by EPCAL Watch Board members Angela De Vito and Andrew Leven cited below  (Full disclosure:  both are candidates in the November town election.)

9)  After six years of promoting its intention to create high paying aerospace and technology jobs, "the Silicon Valley of the East Coast", the Ghermezians’ representatives revealed in a presentation to the RIDA that the real development plan (as also seen on an earlier "unauthorized" design) is an air cargo distribution hub with 10,000,000 square feet of warehousing along the two runways left by Grumman. 

10)  The Town Board’s tolerance of the Ghermezians’ diversions and misrepresentations through CAT has prevented any ability to act on behalf of the taxpayers and seek other projects and developers for EPCAL and to encourage more creative and positive thinking about use of an irreplaceable natural resource.

11)  The most recent RIDA Board meeting revealed that its governance committee met in January and in March of 2023 to review the CAT application for RIDA benefits.  This was done behind closed doors and without the full RIDA board involved in its discussions.

 

Additional resources

Agreement of Sale  December 28, 2017

document958092538030718.pdf (municipalone.com)

 

Letter to the Riverhead Town Board from EPCAL Watch September 21, 2020

https://saveepcal.blogspot.com/2020/09/epcalwatch-coalition-156-youngs-avenue.html

 

Resolution and Letter of Agreement between Riverhead CDA and CAT for joint application to RIDA

2022-03-09-CDAResolutionforEPCALtransfer1505120824030922PM.pdf (municipalone.com)

2022-03-03-LetterfromCATreEPCALsale1505120916030922PM.pdf (municipalone.com)

 

CAT / Ghermezian plans for a jetport cargo distribution hub

https://riverheadlocal.com/2022/09/22/air-cargo-logistics-hub-in-calverton-planned-by-triple-five-affiliate-to-enhance-package-delivery-services-on-long-island/

 

Planned IDA vetting  process

https://riverheadlocal.com/2023/03/29/riverhead-ida-provides-update-on-vetting-process-of-purchaser-in-40-million-calverton-land-deal/

 

IDA prejudgement of October closing and revelation of its financial self-interest

https://riverheadlocal.com/2023/04/06/audit-reveals-riverhead-ida-anticipates-october-closing-with-calverton-aviation-technology-for-major-boost-to-agencys-sagging-bottom-line/

 

Systemic organizational and financial problems of Riverhead IDA

https://riverheadlocal.com/2023/04/17/is-the-riverhead-ida-serving-the-publics-interest-with-many-big-projects-about-seek-agency-benefits-the-answer-is-critical/

 

Letters from EPCAL Watch to IDA and opinion pieces by members

https://saveepcal.blogspot.com/2023/04/epcal-watch-letters-and-articles-re-ida.html

Saturday, April 15, 2023

EPCAL Watch Letters and Articles re IDA


EPCAL WATCH COALITION

156 Youngs Avenue     Riverhead, New York 11901    631.369.8237


         

13 March 2023

Riverhead Town Industrial Development Agency

200 Howell Avenue

Riverhead, New York 11901

 

Dear Chairman Farley and Members of the RIDA Board,


     The redevelopment of EPCAL stands to be the most transformative project for the Town of Riverhead and possibly for the East End region.  On occasion, when faced with complex issues or trailblazing policies, our Town officials have provided a platform for dialog with residents, to provide information, answer questions and receive valuable input.  The success of past efforts to engage constituents is the reason EPCAL Watch is reaching out to you as members of the Riverhead Industrial Development Agency.
     We understand your tentative approval process includes a public hearing on a proposed inducement resolution should one be offered.  The importance of the unique and unprecedented task you have been given cannot be overstated; the input and concerns of the community should not be marginalized and left to the end of your process when you hold the public hearing. Therefore, we are proposing a forum like the ones the Town has held on the transfer of EPCAL from the CDA to the IDA, the water forum, and the cannabis forum. 
     Given the tremendous success of those fora, EPCAL Watch Coalition respectfully requests that RIDA organize and sponsor a similar interactive public forum as soon as possible to collect and exchange information, and to promote awareness, understanding and transparency of the process.  Most importantly, the public will have an opportunity to understand your approach to discharging this incredibly important responsibility on behalf of the people of the Town of Riverhead.

     
We ask that you give this request serious consideration and would appreciate a response in the next week or two either accepting or rejecting our proposal. 

Regards,


Rex Farr, Coordinator

cc:  Board of Directors, Riverhead Town Community Development Agency

       Community Development Administrator Dawn Thomas

       Tracy Stark RIDA Executive Director
       Riverhead Town Clerk


*******************************


EPCAL WATCH COALITION

156 Youngs Avenue      riverhead, new York 11901       631.369.8237


 22 March 2023

 

Michael Caplice, LI Regional Director

NYS OSC

State Office Building, Suites 4A-8A

250 Veterans’ Memorial Highway

Hauppauge, New York 11788

 

RE:  Riverhead IDA Taking on an Impossible Task


 Dear Mr. Caplice:

           In September 2022, the Riverhead IDA (RIDA) accepted a joint application from the Riverhead Community Development Agency (the Town) and the potential purchaser of land at EPCAL--the land had been gifted by the US Navy to the Town in the late 90’s for economic development.  The would-be purchaser is Calverton Aviation Technology (CAT), one of the hundreds of LLCs

created by the Ghermezian family; the sale involves 1600+ acres-- 600 developable acres with 2 runways, and 1000 environmentally protected acres--all for the sum of $40 million.

          Quick recap because this is complicated.  I will try to keep it simple.  The sales contract, signed in 2018, required the Town to file an 8-lot subdivision of the EPCAL land.  When, by May 2020, they had not been able to do so, even though the contract allowed them to terminate the ill-fated deal with the Ghermezians, the Town chose not to, and instead they kept trying to get the DEC permit that was needed for the subdivision.

          So why couldn’t the Town get the DEC permit it needed?  Primarily because CAT’s development plan was too vague and hypothetical to be able to tell if it was consistent with the SEQRA studies that had been done for the EPCAL land, and there was no requisite comprehensive habitat protection plan for the environmentally protected acreage CAT was trying to buy.  No permit meant no subdivision which meant no sale. Stalemate!

          Instead of demanding a definitive development plan from CAT so the permit could be obtained, the Town came up with the bright idea to shift the headache to the RIDA--this they did by filing a joint application with CAT to the RIDA in March 2022.

          The scheme is supposed to work like this.  If the RIDA decides to give the requested tax breaks to CAT, the Town will transfer title to the EPCAL land to the RIDA, and the RIDA will then


lease the land to CAT for its development project.  Bingo, when that happens the Town gets its 40 million dollars--no need for that pesky subdivision approval.  CAT will start building on the leased land and somewhere down the line--we don’t know when--CAT will get the subdivision approved and will then receive title to the property from the RIDA.

          Sounds perfect, doesn’t it?  But will it work?  It shouldn’t if the RIDA follows its normal procedures.  The RIDA, as everyone knows, is in the business of granting tax relief to the developers who can show they will bring projects to the Town that will advance job opportunity, health, prosperity and economic welfare for the residents.  The developer normally comes to the RIDA with all its ducks in a row--an approved site plan, all needed zoning variances and approvals, all required permits and a completed SEQRA review of the project.  The RIDA then looks at the estimated capital costs and the projected number of jobs and completes a cost benefit analysis to determine if the project warrants the tax exemptions the developer is seeking.

          The problem in this case is that CAT has no approved site plan, no zoning approvals, no required permits and no completed SEQRA review.  In fact, the project they described in their presentation to the RIDA is completely different from the state-of-the-art innovative aeronautics and technology center with supportive industries that they have been touting since 2018.  Just this past September though, CAT came clean and told the RIDA the project is for nearly 10 million square feet of warehouses and a cargo airport using both runways.  A cargo airport, however, is not permitted under current zoning and has never been studied for its environmental impact under SEQRA.  In fact, the Town’s latest environmental study, which the RIDA says it’s bound by, specifically states that the property would not be used for cargo or freight!  Add to that the further complication of how CAT gets water and sewer permits for land that has not been subdivided.  And for sure, it can’t start building without an approved site plan which it also does not have.  Nor has a comprehensive habitat protection plan been approved.

          These deficiencies are just the tip of the iceberg to demonstrate what an impossible task the RIDA has undertaken.  The RIDA is not equipped to assess nor should it be considering this “project” in this its larval stage.  It is patently premature to be considering tax abatements at this time.  The Town, not the RIDA, is responsible for overseeing development of the land at EPCAL that was gifted to Riverhead for economic development.  In fact, the section of the Town’s zoning code dealing specifically with the land at EPCAL

(Sections 301-339) says the development of lands there “shall require the submission of a site plan application…subject to Town Board site plan approval.” 

          Clearly, given the posture of this deal, the RIDA should bow out at this time and deny tax inducements for this project.  If and when a site plan has been approved, all necessary permits and variances obtained, and a SEQRA study completed for a cargo airport, then CAT can come back to the RIDA.  But for now, this project is not ready for consideration for tax abatements by the RIDA.

On Behalf of the EPCAL Watch Coalition,

Rex Farr

EPCAL Watch Coalition Coordinator


****************************


Riverhead has a leadership problem

Rendering of CAT's phase 1A development by CAT's architect BLD Architecture.

Riverhead has a fundamental problem that affects all of its residents: Those who are supposed to protect the public routinely don’t. With real consequences.

To see how that harms the many, one need look no further than how close our town is to badly damaging the value of most people’s biggest asset; their homes. We are at the precipice of having a jet cargo airport at EPCAL with the largest runway in the Northeast. Without being told what it will look like, how it will operate, or who will own it. And this is being done to us by our own government.

If this goes through, at least 50 existing homes could be rendered virtually uninhabitable. The market value of hundreds (and likely thousands) more will see their market value reduced. And virtually everyone living in Riverhead is at risk in various ways and to varying degrees of being negatively impacted.

For property owners, the possibilities are stark. While many factors affect noise levels, there are some commonly accepted ideas about planes. Going five miles out in any direction from EPCAL, homeowners can expect to endure jet cargo planes at 1,500 feet of altitude or less, at noise levels ranging from running a vacuum cleaner in the next room to living 50 feet away from the Long Island Expressway. This will be worse at night, because that is when noise is often heard even more clearly.

Some of the thousands of residents who live close to EPCAL (and under the most likely flightpaths) won’t mind. Others will mind a lot. But all of them will be damaged, because (as noted by the US Air Force) at noise levels lower than what we can reasonably expect from cargo jets at 1,500 feet, one out of five people are “highly annoyed” and for some, the noise will actually interfere with the ability to speak to each other. Meaning – among other things – that when a resident wants to sell their home the pool of potential buyers will likely be reduced by at least a fifth and, while they are trying to sell it, the owners may actually find it hard to talk to each other on their own property.

That could explain why the FAA says noise levels lower than those that will likely be experienced in thousands of local homes are “generally incompatible with residential land uses.” Otherwise stated, EPCAL could render many homes in Riverhead incompatible with being a home.

Faced with this quality-of-life cliff, one would expect our government to be actively and vigorously looking out for our interests. Yet the opposite seems to be happening.

Despite being possibly weeks, or even days, away from approval, the approving authorities will not tell us:

Whether EPCAL will or will not be a jet cargo airport. On that score, at some points in the process the answer has been “no.” Then “maybe.” Now, apparently, “yes.”

Who will own it?

What else will be built there? One million feet of additional warehousing? Or is 10 million? We have seen both figures.

What will this look like regarding traffic, site infrastructure (roads, wells, septic, toxic waste clean-up), and environmental issues (multiple endangered species live on the EPCAL site)?

Will the developer actually raise the money to actually build, or instead simply tie up our town’s use of the site for more years.

Despite all of this, the town has actually joined the developer’s application. To make matters worse, the town has manipulated the approval process to circumvent basic requirements that exist to protect us.

Land-use issues are complex, and those raised by EPCAL perhaps even more so. For that reason, let me plainly state that I do not here impugn the motives of any individual public official – elected or appointed – connected with the EPCAL approval process. This is not a criticism about individual people.

But at some point actions (and inactions) have consequences, and results matter. EPCAL is a symptom of a deeper malaise experienced by many communities. Including ours. Which is that we are at a point where we cannot trust our leaders to lead. At least, not behind closed doors. Where decisions like EPCAL that directly impact us are being made.

There is another way. A fusion slate of three registered Democrats and two Republicans has been put together by the Democratic Party for the November elections. I am one of the Republicans. I joined the ticket because it is not about being red or blue. It is about reclaiming Riverhead using common sense drawn from both sides, and not the ideology of one party or the other. With a simple goal: to protect those who live here by stopping.

EPCAL and stopping uncontrolled overdevelopment throughout the town — as well as addressing the wide range of other issues that will determine whether we will retain our unique strengths as a community.

Andrew Leven is a former career federal prosecutor. He lives in Riverhead.

Editor’s note: Leven is a candidate for Riverhead Town Board, running for a council seat on the Democratic line.

https://riverheadlocal.com/2023/03/25/riverhead-has-a-leadership-problem/

*****************************************

The Riverhead IDA must say no to

tax breaks for a cargo hub at 

former Grumman site. Here’s why.

Rendering of CAT's phase 1A development by CAT's architect BLD Architecture.

Instead of cutting through the tangled web they and their predecessors got us into at EPCAL with the Ghermezians and the late Daniel Preston, the Town Board, in a cowardly move, washed their hands of the mess and dumped it into the lap of the Riverhead Industrial Development Agency (IDA). By doing so, they put the IDA in an impossible situation; the IDA needs to extricate itself by saying no to tax inducements — that will put the ball back where it belongs: in the hands of the Town Board. Then the board can and must exercise its right to walk away from this ill-fated deal.

A quick recap because this long dragged-out debacle is complicated.  Way back in 2018, the town signed a contract to sell to Calverton Aviation and Technology (CAT) land at EPCAL : 600+ developable acres with two exceptional runways, and 1,000 environmentally protected acres, all for the embarrassingly low sum of $40 million.  That contract required the town to file an eight-lot property subdivision and secure a NYSDEC Wild, Scenic and Recreational Rivers Act (WSRR) permit.

By May 2020, the town had yet to get the subdivision approved and even though the contract allowed the town to terminate the deal, the Town Board chose not to, and instead kept trying to get the permit from the NYS Department of Environmental Conservation that it needed for approval of the proposed subdivision.  Bad idea. They should have walked fast and far away from this deal.  

So why couldn’t the town get the WSRR permit it needed?  The NYS DEC deemed the application incomplete.  Objections from DEC included:

  • Deficiencies in the town’s Comprehensive Habitat Protection Plan;
  • Deficiencies in the town’s SEQRA consistency analysis;
  • And the town’s failure to get SWCA to consent to the Riverhead Water District supplying water to the site.

No permit meant no subdivision — which meant no sale.  STALEMATE!

The town then came up with the bright idea to shift the headache to the IDA. In March 2022 the town (CDA) and CAT filed a joint application for IDA benefits.

The scheme is supposed to work like this.  If the IDA decides to go ahead with the requested tax breaks, the town transfers its land at EPCAL to the IDA.  The IDA then leases come of the land to CAT for its development project and the rest back to the town.  BINGO! When that happens the town gets its $40 million —no need for that pesky subdivision approval.  CAT will start building on the leased land and somewhere down the line — we do not know when — CAT will get the subdivision approval and will then receive title to the property from the IDA.

Sounds perfect, doesn’t it? But will it work?  Absolutely not if the IDA follows its normal procedures. The IDA, as we all know, is in the business of granting tax relief to developers who can show they have the ability to bring projects to Riverhead that advance job opportunity, health, prosperity and economic welfare for the residents.  The developer usually comes to the IDA with all its ducks in a row — an approved site plan, all needed zoning variances and approvals, all required permits, and a completed SEQRA review of the project.  The IDA then looks at the estimated capital costs of the project, the developer’s ability to finance the project and the projected number of jobs for both construction and operations. The IDA does a cost-benefit analysis to determine if the project’s benefits to the residents of Riverhead warrant the tax exemptions sought by the developer.

The problem with this particular application is that CAT has no approved site plan, no zoning approvals, no required permits and no completed SEQRA review. In fact the project described by CAT during their presentation to the IDA in 2022 is completely different from the state-of-the-art innovative aeronautics and technology center with supportive industries touted since 2017.  Just this past September, CAT came clean and told the IDA its project is for a combination of 10 million square feet of “distribution centers” (not your traditional warehouses) and “flex” buildings as well as an “air cargo hub” using both runways. 

Well, hello! A cargo airport is not permitted under current zoning and has never been studied under SEQRA for its environmental impacts. In fact, the Town’s latest environmental study, which the IDA says it is bound by, specifically states that the property would not be used for cargo or freight. 

Add to that the further complication of how CAT will ever get water and sewer permits for land that has not been subdivided.  How can CAT start construction without an approved site plan — and a comprehensive habitat protection plan that has yet to be approved.

This just scrapes the tip of the iceberg in an effort to show what an impossible task the IDA has undertaken.  The IDA is not equipped to assess, nor should it be considering, this “project” in this its larval stage.  It is simply premature to be considering tax abatements at this time.

Our town, not the IDA, is responsible for overseeing development of the EPCAL lands that were gifted to us for economic development.  In fact, the section of the town’s zoning code dealing specifically with the land at EPCAL (Sections 301-339) says the development of lands there

“… shall require the submission of a site plan application… subject to the Town Board site plan approval.”

Clearly, the IDA should bow out and say no to tax inducements for this project, which it cannot consider anyway because it is not defined or approved.  To do otherwise flies in the face of IDA practices and procedures; it puts the IDA at risk of an audit by the Office of the State Comptroller.

The town’s elected and past Republican Town Board officials are responsible for this horrible deal with CAT.  For these reasons, the IDA should just say no. And when the IDA does so, the town, under the terms of its agreement with CAT, has the right to walk away free and clear — and that’s exactly what must be done.  The people of Riverhead do not want a cargo airport supporting mammoth distribution centers at EPCAL.

Angela DeVito is the Democratic candidate for Town Supervisor. She lives in South Jamesport.


 https://riverheadlocal.com/2023/04/10/the-riverhead-ida-must-say-no-to-tax-breaks-for-a-cargo-hub-at-former-grumman-site-heres-why/


EPCAL WATCH COALITION

156 Youngs Avenue      riverhead, new York 11901       631.369.8237


April 14, 2023

 

Riverhead Industrial Development Agency

542 East Main Street, Suite 1

Riverhead, NY 11901

 

RE:  Joint CDA/CAT LLC RIDA Application

 

Dear Chairman Farley, Members of the Board and Ms. Tracy Stark-James,

 

The Riverhead Industrial Development Agency (RIDA) has begun its due diligence on whether to grant an authorizing resolution that will enable Calverton Aviation and Technology (CAT) to construct an air cargo distribution hub and mega warehouses at EPCAL.  However, we are deeply concerned that RIDA has already compromised its professional standards and ability to evaluate objectively the town's controversial deal with CAT.

As reported in the Riverhead Local on April 8, 2023,

The Riverhead Industrial Development Agency told its independent auditors, Jones, Little & Co. CPAs, that the Calverton Aviation & Technology project “has an anticipated closing date of October 2023,” according to the audited financial statements prepared by the auditors and filed with the Riverhead Town Clerk on March 31. 

 In your own audit letter’s bureaucratic language

 Management has analyzed the results of the Agency for the year ended December 31, 2022, which was a decrease in net position. As such, Management has prepared a going concern evaluation subsequent to year ended December 31, 2022. Included in the evaluation are deposits of $150,000 received in February 2023 from a project [CAT] that has an anticipated closing date of October 2023; $41,000 for a project closing; and $20,200 for normal course of business fees (i.e., annual compliance fees, late charges). Management has indicated that the Agency is also in discussions for another potential project closing by the year ending December 31, 2023. Based upon a prudent budget for the year ending December 31, 2023, and a period thereafter, we believe the Agency will continue as a going concern.

Your projected closing date is just before an election that could turn on citizens' views about whether they believe this deal is good for the town as well as about the impact of an air cargo distribution hub and mega warehouses on their own quality of life and property values.

In addition to foreshadowing that a decision has already been made so that the evaluation process you are undertaking is only for show, the audit letter reveals a serious conflict of interest.

It appears that RIDA is projecting receipt of up to $662,500 in fees from this very controversial deal to finance its own budget.  In fact, the audit letter implies that RIDA will not be able to remain in operation without the income generated by approval.

How can RIDA make an objective judgement about this complicated and unprecedented application if influenced by its need to survive financially?

We hope there are explanations for the language in your audit letter that can be provided in the public forum about how RIDA intends to evaluate the proposal from the Riverhead CDA and the Ghermezian family, as I was assured will occur by Ms. Stark in two phone conversations.

In order to address disquiet among citizens of Riverhead and to meet its obligations under NY State open government laws, rules and regulations to engage the public to the greatest degree feasible in this deliberative process, can you schedule and announce the date of the forum in the near future?

From the beginning, we have had serious doubt about the legality, propriety and viability of the unprecedented burden thrust upon RIDA by the Town Board to avoid its own responsibility to terminate an unfulfilled, one-sided and ill drafted contract.  As a result of the latest revelations, we are asking State Comptroller Thomas DiNapoli, State Attorney General Letitia James and the Open Government Committee of the Department of State to examine how elected and appointed officials of Riverhead are carrying out their responsibility for governance and protection of the public interest regarding EPCAL.

Sincerely,


Reginald Farr

Coordinator

EPCAL Watch Coalition

 

 cc:  Riverhead Town Supervisor

       Members of the Board/CDA of Riverhead

       Thomas DiNapoli, New York State Controller

       Letitia James, New York State Attorney General

       Shoshanah Bewlay, Executive Director, NYS Committee on Open Government



EPCAL WATCH COALITION

156 Youngs Avenue      riverhead, new York 11901       631.369.8237


May 31, 2023

 

Yvette Aguiar, Riverhead Supervisor

Members of the Town Board


Dear Supervisor Aguiar and Town Board Members,

When the Navy gave the land at EPCAL to the Town of Riverhead, the Town became responsible for its development. This property is the largest industrial subdividable tract in the Northeast and it has been identified by the State of New York in a Special Act as being a uniquely important urban development area. There are a lot of eyes on EPCAL.

CAT’s September 20, 2022 presentation to the IDA depicted a cargo airport and massive distribution center with the potential to generate a volume of air and truck traffic never before experienced in Calverton. The project was crystal clear, the public was paying attention, and we all now know that the Town has a seriously flawed SEQRA (State Environmental Quality Review Act) record on this matter.

The Town as Lead Agency should not let the IDA move forward with an inducement resolution before it corrects the deficient record.   A Lead Agency can reopen SEQRA at any time if there is new information, a change in regulatory circumstances, or significant modification to a project even after Findings have been adopted. The current CAT proposal checks all the boxes for when a Supplemental EIS is warranted. 

As it now stands, the existing SEQRA study is based on an environmental assessment form (FEAF) which was signed by Sean Walter for a 50-lot subdivision in 2013.  A Final Supplemental Generic Environmental Impact Statement (FSGEIS) was completed and adopted on March 15, 2016, by the Town Board.  The Findings Statement was adopted on July 19, 2016.  The IDA was not an Involved Agency in that SEQRA review; the IDA was never even mentioned in the FSGEIS.

Thereafter, because the contract with CAT required an 8-lot subdivision, not the 50-lot subdivision that was studied in the FSGEIS, a Consistency Analysis was done April 1, 2019, by Jeffrey Seeman which was adopted by the Planning Board on May 16, 2019.  The analysis was updated on March 25, 2020, and then again on October 12, 2020 but neither was formally adopted by any Board nor accepted by the DEC.

All these documents together constitute the work the Town has done on the project that is now pending before the IDA for consideration of an inducement resolution.  For a plethora of reasons, this SEQRA record remains patently inadequate.

First, although the IDA is now currently faced with a discretionary decision, they were not part of the SEQRA process as an Involved Agency.   The socio-economic section of the EIS only examined impacts at full taxable rates; thus, the projected property tax revenues in the study represented a benefit the community expected. 

Second, the use of the runways for cargo planes was never studied in the SEQRA process.  Clearly, from CAT’s marketing report and plan presented to the IDA, CAT intends to move and extend the taxiways, and use both runways for cargo planes.  Yet, such use was specifically cited in the October 2020 Consistency Analysis Update (p. 15) as a use that would not be happening according to CAT’s counsel and representatives.  In fact, that update says that, while aviation use is permitted on the property, such use is subject to restrictions in the PD Zoning District.  Further, the 10,000 foot runway which is for accessory use of the tenants/owners in the PIP, is subject to Airpark Rules passed by the Town on April 19, 2007 controlling the operation and use of that runway.  The increase in aviation activity as a result of the reactivation of the 7000 foot runway was never studied in SEQRA, and relocation of the runways will directly impact areas identified as prime habitat protection areas including grasslands and woodlands.

Third, the traffic analysis in the completed SEQRA was not modeled using logistics, distribution warehouse figures because, as stated in the October 2020 Consistency Analysis, CAT had represented the property would not be used for cargo or freight operations; rather, the runways and buildings were to be used for aviation technology companies for new and innovative aerospace design of aircraft, electric and solar related avionics. Clearly there was no study whatsoever done of the kind of cargo/freight operation described and pictured in CAT’s presentation to the IDA. The intense truck traffic generated by nearly 9 million sq. ft. of cross-docking distribution buildings was never evaluated. Further, there is no consideration of the cumulative impacts from the multiple logistics warehouse projects currently pending in Calverton outside of EPCAL.

And finally, the Town is now aware that the Navy has discovered additional contamination on parts of the property being sold to CAT.  An investigation is commencing into the nature and extent of the contamination which will determine remediation protocols.  This critical piece of information, along with all the other deficiencies noted above, dictates the need for the Town—the entity ultimately responsible for the disposition and use of this property—to reopen SEQRA. 

There is now a site-specific development plan which is not supported by the SFGEIS.  CAT must demonstrate that the project is within the thresholds and complies with the conditions set forth in the adopted Findings Statements.

The Town Board as Lead Agency must take this opportunity to reopen SEQRA and get it right before it allows the IDA to move forward on the Town’s joint application with CAT.  Failure to do so leaves this Town vulnerable to legal challenges and would be a gross dereliction of your fiduciary responsibility to the community.

Thank you for your consideration and action on these concerns.

Sincerely,

Reginald Farr

Coordinator


 cc:   James Farley, Chair, Riverhead Industrial Development Agency, and Board Members

        Tracy Stark-James, Executive Director, Riverhead Industrial Development Agency

        Dawn Thomas, Executive Director, Riverhead Community Development Agency

        Erik Howard, Riverhead Town Attorney





EPCAL WATCH COALITION

156 Youngs Avenue      riverhead, new York 11901       631.369.8237


June 15, 2023

James Farley, Chairman

Tracy Stark-James, Executive Director

 

Dear Mr. Farley, Ms. Stark-James and members of the Riverhead IDA,


On March 13, EPCAL Watch sent a letter to the IDA that included this request:

“The importance of the unique and unprecedented task you have been given cannot be overstated; the input and concerns of the community should not be marginalized and left to the end of your process when you hold the public hearing. Therefore, we are proposing a forum like the ones the Town has held on the transfer of EPCAL from the CDA to the IDA, the water forum, and the cannabis forum. 

Given the tremendous success of those fora, EPCAL Watch Coalition respectfully requests that RIDA organize and sponsor a similar interactive public forum as soon as possible to collect and exchange information, and to promote awareness, understanding and transparency of the process.  Most importantly, the public will have an opportunity to understand your approach to discharging this incredibly important responsibility on behalf of the people of the Town of Riverhead.”

One month later on April 14, we wrote to you again, containing this reminder:

In order to address disquiet among citizens of Riverhead and to meet its obligations under NY State open government laws, rules and regulations to engage the public to the greatest degree feasible in this deliberative process, can you schedule and announce the date of the forum in the near future?

We never received a written response to either letter.

Despite two verbal assurances from Ms. Stark that our requested forum would take place, we were told informally in conjunction with your last public meeting on June 5 that the IDA is not likely to host a public informational meeting about your process with an open dialogue format.  The presentation by CAT at the Hotel Indigo was obviously not what had been proposed and what we thought had been agreed to and was not an acceptable nor an effective substitute.


In an effort to respond to our request, Vice Chairwoman Pipczynski indicated informally on June 5 that she would explore with the Board and its counsel the possibility of putting some “meat on the bones” of the “Tentative Approval Process” posted on the IDA’s website.  There was also a brief discussion of the possibility of EPCAL Watch submitting questions to the Board in writing. 

Please send written acknowledgement of this letter and the representations contained herein and advise as to your official disposition of our ongoing request for a public forum on the IDA evaluation process of the CAT/CDA joint application.

EPCAL Watch remains fully engaged in the proceedings and transactions of the IDA on the CAT/CDA joint application and we expect transparency to the fullest extent of the law.  

An essential minimum is that the IDA should add to the agenda of its monthly public meetings a substantive update about what has transpired during the previous month regarding EPCAL, so the public is cognizant in real time of the process leading up to your recommendations.

 

Sincerely,

 

Reginald Farr

Coordinator

EPCAL Watch Coalition

 

 

cc:  Riverhead Town Supervisor

       Members of the Board/CDA of Riverhead

       Thomas DiNapoli, New York State Comptroller

       Letitia James, New York State Attorney General

      

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Affiliated Civic Associations   

               

Audubon Society                          

Brookhaven Group for the        

   East End   

        

Greater Calverton Civic



Greater Jamesport Civic

LI Pine Barrens Society

LI Sierra Club

Northville Beach Civic

Riverhead Neighborhood

  Preservation Coalition

Seatuck Environmental  

     

Sound Shore Heights Civic

Wading River Civic

                                                               

 

 

Reginald Farr, Coordinator

Patricia Aitken                     

Richard Amper

Sid Bail

Phil Barbato

Barbara Blass                      

Karen Blumer

Charles Brevington

Bob De Luca

James Derenze

Michael Foley

Mark Haubner

Christy Hawkins

Mary Ann Johnston

Michael Madigan

Kevin McAllister

John McAuliff

Kathy Mc Graw

Linda Pritzer

Doug Rosenbrock

Rose Sanders

Toqui Terchun

John Turner