RiverheadLOCAL/Denise Civiletti

The Riverhead Town Board’s apparent rush to anoint J. Petrocelli as the master developer for the town square and fast-track the construction of their 5-story hotel and condo not only raises serious concerns about transparency, it showcases a fundamental misunderstanding of the role of government in serving the public good, and the need for our elected officials to balance private interests and public benefits. 

A lack of transparency was on full display throughout the process leading to this decision. At the July 22 public hearing, residents were restricted to commenting only on whether Petrocelli was “qualified and eligible” and not on the project’s merits. Little or no information was provided to the public to help them ascertain whether Petrocelli was “qualified and eligible.” No real financial information was provided about their new LLC responsible for the development. The only information available was the 130-page contract with the LLC and some letters of support.

This lack of information was compounded by the board’s decision to move forward with designating Petrocelli “qualified and eligible” before the Friday public comment deadline — a deadline that they set themselves. Taking action before the deadline expired undermines public participation and fuels further distrust. Rushing this process sends a troubling message that public input is just a formality rather than a foundational part of responsible government. It also doesn’t allow for a discussion of questions that have been raised on the periphery, like, for example, whether the project requires the alienation of public parkland, and if so, how and when that process would be undertaken. Their choice to publicly castigate critics as “silly” “naysayers,” who were just “complaining to complain” is a deeply troubling response to legitimate civic engagement.

Elected officials have a core responsibility to balance market-driven proposals with community needs and priorities. Finding a balance between the public benefits vs private interests was clearly suppressed by the lack of a competitive bidding process.  This is especially true given the disconnect between the community priorities outlined in the Pattern Book and Comprehensive Plan, which did not include a 5-story hotel, and the town-commissioned market study, which recommended a hotel and mixed-use development.  Competitive bidding would also have ensured the 7% construction management fee on the cost of the entire project, the $150,000 annual maintenance fee and IDA tax-abatement were necessary or fair. Finally, a competitive process would have built public trust and addressed concerns about potential insider deals.  

While the board does have legal authority under New York’s Urban Renewal Law to bypass competitive bidding and public comment on the project itself, choosing to do so squanders a multi-generational opportunity to explore alternative visions for this critical public space.

Hotels are undoubtedly an important part of our local economy, and Petrocelli has contributed very positively to downtown Riverhead.  While a hotel may ultimately prove to be the best option, the current approach accepts this as a predetermined outcome without fully exploring alternatives.

With tens of millions of dollars in grant funding at stake, a transparent and inclusive process is essential to ensure the project serves the public good and reflects the community’s priorities. These funds offer a rare opportunity to reimagine what’s possible and at least partially defy the gravity of the market. Unfortunately this has the feeling of another missed opportunity for downtown Riverhead and our broader community.

Greg Doroski is a Southold Town council member and the Democratic candidate for Suffolk County Legislature in the First Legislative District. He lives in Mattituck.

https://riverheadlocal.com/2025/07/31/riverhead-will-designate-petrocelli-qualified-and-eligible-for-town-square-project-tuesday/