TOWN OF RIVERHEAD
TB Resolution 2025-599
RESOLUTION CALLING FOR A PUBLIC HEARING ON THE TOWN OF
RIVERHEAD, AS LEGISLATIVE BODY FOR THE TOWN OF RIVERHEAD AND
GOVERNING BODY OF THE COMMUNITY DEVELOPMENT AGENCY,
DESIGNATION OF J. PETROCELLI RIVERHEAD TOWN SQUARE, LLC. AS
A
QUALIFIED AND ELIGIBLE SPONSOR FOR THE PURCHASE AND
DEVELOPMENT
OF A PORTION OF TOWN-OWNED PROPERTY DESCRIBED AS SCTM#
0600-129-
1-LOTS 13, 14 ,15 AND SCTM# 0600-128-6-86.1) LOCATED ON THE
SOUTH SIDE
OF MAIN STREET, RIVERHEAD, NEW YORK
Councilwoman Waski offered the following resolution,
which was seconded by Councilman Rothwell
WHEREAS, for several decades beginning as far back as the
early 1980’s
the Town recognized and expressed its desire to revitalize
and assist in the
redevelopment of the Downtown Business District,
particularly the East Main Street
corridor, beginning with the condemnation, purchase,
demolition and improvement of
lands along the Peconic River east of Peconic Avenue,
including installation of bulk
heading along the riverfront to provide transient boat
dockage (Country Fair and
Nautical Festival), purchase of the Vail Leavitt Music Hall,
purchase of the Cavanaro
property (located behind former Sweezy’s) for parking,
purchase and lease of land to
East End arts, together with other public improvements such
as installation and repair of
sidewalks and planting of street trees; and
WHEREAS, in furtherance of the Town and Community
Development Agency’s
determination to restore the economic vitality to the
Downtown Business District and
need to address the increasing numbers of vacant or
underutilized structures, areas of
blight and deteriorated structures, in 1992 the Town and
Community Development
Agency pursued the designation of the East Main Street
corridor (along the north and
south side of Main Street east of Peconic Avenue and
hereinafter after referred to as
“EMSURA”) as an urban renewal area (General Municipal Laws
Article 15 and 15A) to
create a legal mechanism to accomplish the redevelopment,
economic development
and beautification goals of the community; and
WHEREAS, in 1993, the Town and Community Development Agency
adopted
the East Main Street Urban Renewal Plan reciting the major
goals and objectives as
promotion of tourist and river related redevelopment;
encouragement of commercial and
recreational uses more directly related to the Peconic
River; creation of tourist
destination, with land uses such as restaurants, retail of
products indigenous to the
region, and art galleries; encouragement of private
financing, state funding, subsidies
and capital grants to achieve desired urban renewal goals;
and
WHEREAS, the 1993 East Main Street Urban Renewal Plan
recited potential for
acquisition, preservation, and redevelopment of the
Vail-Leavitt Music Hall (constructed
in 1881 over a haberdashery with second story opera house);
Suffolk Theatre (a 1920’s
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movie theatre with balcony seating); and a host of
properties on and along Peconic
Avenue and Main Street and unimproved portions of properties
along Main Street,
including SCTM # 600-129-1-14; and
WHEREAS, in 2000, as part of the Town and Community
Development
Agency’s continued efforts to restore economic vitality to
the Downtown area,
the Town a retained a firm to prepare a “Revitalization
Strategy for Downtown
Riverhead” (later incorporated into the Comprehensive Plan
adopted in 2003) which
included the following goals and policies: preservation and
enhancement of pedestrian
access and views corridors between East Main Street and the
Peconic River; establish
park uses along the edges of the waterfront: implement
streetscape and landscape
improvements: build pedestrian walkways between Main Street
and the waterfront; and
WHEREAS, due to changes in land use, including but not
limited to, Atlantic
Marine World; Suffolk Theatre; Vail Leavitt Music Hall;
Suffolk Community College
Culinary Arts Program; Grangebel Park Improvement Project,
Peconic Riverfront
Pedestrian Improvement Project: restoration of John Lombardi
Park gazebo and garden
area, and, public policy changes, including but not limited
to, the adoption of the 2003
Comprehensive Plan and changes in zoning from Business D
District to Downtown
Center 1, Downtown Center 2 and other zone changes, in 2008
the Town and
Community Development Agency studied and adopted an update
to the East Main
Street Urban Renewal Plan; and
WHEREAS, the 2008 East Main Street Urban Renewal Plan Update
recited
similar goals set forth in the studies above, including,
encouragement of more scenic
vistas along the Peconic River Corridor; pedestrian parks
and courtyards to provide
positive aesthetic quality; dual entrance design to connect
commercial and retail uses to
the waterfront and parking areas; promote open space and
community facilities for
tourists and local residents; enlargement of public space
along the river corridor south
of East Main Street by reducing land dedicated to parking
and seeking public/private
partnerships to make improvements and maintain view sheds;
minimize alleyways and
hidden spaces that pose risks to public safety; and
implementation of beautification
projects; and
WHEREAS, the 2008 East Main Street Urban Renewal Plan Update
(at page
23), not dissimilar to the 1993 East Main Street Urban
Renewal Plan, “there are
properties both north and south of East Main Street and West
of McDermott that are
being considered for public and private acquisition. Public
acquisition of additional
lands, where warranted, may be necessary to foster the
overall goals of this update.
Public land within the EMSURA, such as areas utilized for
parking, should be reviewed
periodically and a determination rendered as to whether
parking is the appropriate use.
If not, public/private funding for reuse of parking with
acceptable development or
conversion to parkland should be considered; and
WHEREAS, since the early 1980’s through to the present, the
Town, together
with the Community Development Agency, have made some
significant
accomplishments consistent with the revitalization plans
above, and continued to
update and study the East Main Street corridor with a focus
on the goals to
encouragement of more scenic vistas along the Peconic River
Corridor; pedestrian
parks and courtyards to provide positive aesthetic quality;
dual entrance design to
connect commercial and retail uses to the waterfront
public/private partnerships to make
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improvements and maintain view sheds encouragement of
private financing, state
funding, subsidies and capital grants to achieve desired
urban renewal goals; and
WHEREAS, in December of 2019, the Community Development
Agency
successfully made application for grant monies wherein the
Town of Riverhead was
awarded an $800,000.00 grant through the Long Island
Regional Economic
Development Council for a project to create a Town Square
consisting of a public
gathering space, pedestrian connectivity and open vistas
from Main Street to the
riverfront; and
WHEREAS, two parcels located on East Main Street , 121 East
Main Street
(SCTM# 0600-129-1.00-013.000) and 127 East Main Street
(SCTM# 0600-129-1.00-
014.000) were identified for possible acquisition and
included as part of the Town’s
grant application to the Long Island Regional Economic
Development Council and five
parcels located on East Main Street, including 117 East Main
Street (SCTM# 0600-129-
1-12), 121 East Main Street (SCTM# 0600-129-1.00-013.000)
and 127 East Main Street
SCTM# 0600-129-1.00-014.000 were all identified by the Town
as priority parcels for
acquisition with funding through the Old Drinking Water
Protection Program 12-
D reciting the parcels proximity to the Peconic River with
rehabilitation of such parcels
mitigating known negative impacts and achieving desired
goals of the Peconic Estuary
Program Comprehensive Conservation and Management Plan
(CCMP); and
WHEREAS, the Town and Community Development Agency
identified the
purpose of purchase of 117 East Main Street SCTM#
0600-129-1-12, 121 East Main
Street SCTM# 0600-129-1.00-013.000) and 127 East Main Street
SCTM# 0600-129-
1.00-014.000 as creation of public gathering space and
encouragement and pursuit of
private financing, public and private partnership(s),
federal, state and local funding,
subsidies and capital grants to design and construct
commercial and retail uses
compatible with public space all consistent with the urban
renewal policies and goals
recited above; and
WHEREAS, after providing the opportunity for all interested
individuals to be
heard at a public hearing held on July 21, 2020, the Town Board by
Resolution #2020-
399 and Community Development Agency by Resolution #2020-6,
adopted on August
4, 2020 subject to permissive referendum
requirements, the Town and Community
Development Agency, respectively, authorized the purchase of
three properties located
in the center of East Main Street, to wit: 117 East Main
Street SCTM# 0600-129-1-12,
121 East Main Street SCTM# 0600-129-1.00-013.000) and 127
East Main Street
SCTM# 0600-129-1.00-014.000 in furtherance of the goals
recited above, specifically,
creation of a public gathering space with pedestrian
connectivity and open vistas from
Main Street to the Peconic River, together with
encouragement and pursuit of private
financing, public and private partnership(s), federal, state
and local funding, subsidies
and capital grants to design and construct commercial and
retail uses compatible with
public space all consistent with the urban renewal policies
and goals recited above; and
WHEREAS, in addition to the above, the Town, by Resolution
#2021-68 adopted
on January
20, 2021 retained Urban Design Associates, Ltd. (“UDA”) to assist with the
design
for the Town Square with such services including renderings of a Town
Square
and the Town, by Resolution # 2021-481 adopted on July 7, 2021, the
Town Board
authorized a professional services agreement with National
Development Council
(“NDC”), one of the oldest national economic development
non-profit organizations with
a focus on creating housing, jobs, and communities
and performing work exclusively on
behalf of municipalities and local development corporations
to assist with the Town
Square project and Transient Oriented Development project;
and
WHEREAS, after purchase of the above parcels, the Town and
Community
Development Agency, by Resolution #2021-555 and Resolution
#2021-8 adopted on
August 26, 2021 authorized the Town Clerk to publish notice
to bidders for the
demolition of 117 East Main Street SCTM# 0600-129-1-12
and/or 121 East Main Street
SCTM# 0600-129-1.00-013.000) in furtherance of the goal to
create a public gathering
space with pedestrian connectivity and open vistas from Main
Street to the Peconic
River, together with design and construct commercial and
retail uses compatible with
public space known as the "Town Square" project;
and
WHEREAS, the Town received five bids and based upon
recommendations of
the Purchasing Agent and Town Engineer, by Resolution
#2021-10 and Resolution
#2021-624 adopted on September 30, 2021, the Town Board and Community
Development
Agency authorized the award of bid for demolition of 117 & 121 East Main
Street
to Petrocelli Contracting, Inc.; and
WHEREAS, at or near the time of completion of the demolition
of the structures
located at 117 and 121, Petrocelli Development, LLC, now and
hereinafter known and
referred to as J. Petrocelli Riverhead Town Square, LLC., well-known for the
rehabilitation
and development of the Long Island Aquarium/Hyatt Hotel, historic
renovation
of the East Lawn Building, Howell House, and restoration of the Preston
House, what tax
benefits? expressed interest and desire to develop and
present a plan for the public
space,
reuse and redevelopment of 127 East Main Street; and
WHEREAS, J. Petrocelli Riverhead Town Square, LLC. met with
the Community
Development Agency and Town Board to express his interest and outline a
development
plan, with projected financial plan, to achieve the goals recited in the
original
EMSURA, 2008 updated EMSURA and goals recited in numerous resolutions
recited
above and in turn, the Town Board requested a more detailed plan, with
architectural
renderings depicting size, mass and design; identification of intended uses
for
commercial, retail and identification of all public improvements; identify
maintenance/operation
of all proposed spaces; and projected costs and funding (both
private
and public); and
WHEREAS, in early February of 2022, J. Petrocelli Riverhead Town Square,
LLC. presented
a more formal plan to the Town Board and Community Development
Agency which additional detail and description for Town
Square Project, a narrative for
the conceptual plan design concepts, sketches, diagrams,
pictorials, details of proposed
public amenity/open spaces, street trees or planting areas;
scale; density and design of
the buildings, structures and improvements with consistent
scale and sufficient detail to
clearly show the types, design, dimensions and locations of
all proposed uses,
improvements, alterations, etc.; and
WHEREAS, after J. Petrocelli Riverhead Town Square, LLC.’s
submission of the
above, the Community Development Agency met with UDA and NDC
to discuss not
only design, financial commitment of a potential master
development proposing such a
project, participation of Town, be it funding through grants
or otherwise, and after
such
meeting
tasked J. Petrocelli Riverhead Town Square, LLC. to modify the design and
more
importantly provide additional information that would enable the Town Board
and
Community Development Agency to evaluate the designation of Petrocelli
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Pg. 170
Development,
LLC, again as referenced above now J. Petrocelli Riverhead Town
Square,
LLC., as Master Developer; and
WHEREAS, on April 14th, 2022, the principal of J. Petrocelli Riverhead Town
Square, LLC. met with the Town Board, Community Development
Director, NDC and
UDA and presented in open forum at a regularly scheduled work session a plan and
design
for the Town Square and addressed all aspects related to and necessary for
successful
completion of the Town Square Project; and
WHEREAS, the Town Board, as legislative body for the Town of
Riverhead and
legislative body of the Community Development Agency, based
upon the
recommendation of the Community Development Agency and
recommendations and
guidance from UDA and NDC, did adopt Town Board Resolution
2022-325 and
Community Development Agency Resolution 2022-5 determining J. Petrocelli
Riverhead
Town Square, LLC. as master developer, subject to negotiation of all terms
and
timeline to complete the Town Square including hearing requirements necessary
for
determination
that J. Petrocelli Riverhead Town Square, LLC. is a qualified and eligible
sponsor
for an Urban Renewal Project and compliance with all applicable
provisions of
the General Municipal Law; and
WHEREAS, the Town Board authorized the Community Development
Agency
and Office of the Town Attorney participate in negotiations of this Master
Developer
Agreement
for final approval by the Town Board after publication with the Town Clerk
and
upon designation of J. Petrocelli Riverhead Town Square, LLC. as the
"qualified
and
eligible sponsor” (the "Sponsor"), pursuant to Section 507 (2)
(d) of the General
Municipal Law and in accordance with the established rules
and procedures of the
Agency; and
WHEREAS, the Town and CDA requires the Master Developer and
its proposed
Town Square Hotel Project to comply fully with the New York
State Environmental
Quality Review Act (SEQRA); and
WHEREAS, note that the Town Board did declare itself lead
agency for
Riverhead Downtown Revitalization Projects and did classify
the action as a Type 1
action pursuant to SEQRA as more fully described in
Resolution 2024-982 adopted on
December 23, 2024 and Part 1 Narrative of the full EAF; and
WHEREAS, after coordinated review, by Resolution #2025-263
adopted on
March 18, 2025, the Town Board, as lead agency, did issue a
negative declaration
pursuant to SEQR; and
WHEREAS, in addition to the detailed analysis and
consideration of numerous
potential environmental impacts related to the actions
described as Phase I in the FEAF
and the issuance of a negative declaration recited above,
the negative declaration
recites that the development of the individual projects
listed the Phase I, II, and III in the
FEAF, including
the Town Square Hotel Project, shall be subject to further SEQRA
review for compliance with the narrative and standards set
forth therein; and
WHEREAS, Section 507(2)(d) of the General Municipal Law
requires that a
public hearing, following at least ten (10) days public
notice, be held by the Town and/or
Community Development Agency on the question of designating
J. Petrocelli Riverhead
Town Square, LLC. the Sponsor for the redevelopment of the
aforesaid properties; and
WHEREAS, the Town and Community Development Agency now
desires to call a public hearing on the designation of J. Petrocelli Riverhead
Town Square, LLC as the Sponsor for the sale and redevelopment of a portion of
town-owned property described as SCTM# 0600-129-1-Lots 13,14,15 and SCTM#
0600-128-6-86.1 located on the south side of Main Street, Riverhead, New York.
NOW, THEREFORE, BE IT RESOLVED, that a public hearing will be held at the
Riverhead Town Hall, 4 West Second Street, Riverhead, New York 11901, on July 22, 2025 at 6:00 p.m.,
prevailing time, on the question of designating J. Petrocelli Riverhead Town
Square, LLC. the Sponsor for the sale and redevelopment of a portion of
townowned property described as SCTM# 0600-129-1-Lots 13,14,15 and SCTM#
0600-128- 6-86.1 located on the south side of Main Street, Riverhead, New York
and to hear all persons interested in the subject thereof, concerning the same,
and to take such action thereon as is required or authorized by law; and be it
further, RESOLVED, that the Town Clerk is hereby directed to publish the
attached notice of public hearing once in the July 10, 2025 edition of the News Review, the
newspaper hereby designated as the official newspaper for this purpose and one
having general circulation in and available to residents to the Town. Such
publication shall be made no less than ten (10) days before the date designated
for the public hearing. The Clerk is further authorized and directed to cause a
copy of such notice of public hearing to be posted in such places as he deems
appropriate under the circumstances, such posting to be done not less than ten
(10) days before the date designated for the public hearing; and be it further,
RESOLVED, that the Town Clerk is hereby directed to forward a copy of this
resolution to the Office of the Town Attorney and the Community Development
Agency; J. Petrocelli Riverhead Town Square, LLC., Eric Russo, Esq.; and be it
further RESOLVED, that all Town Hall Departments may review and obtain a copy
of this resolution from the electronic storage device, and if needed, a
certified copy of the same may be obtained from the Office of the Town Clerk.
THE VOTE 9.22 Packet Pg. 172 FISCAL IMPACT STATEMENT OF PROPOSED RIVERHEAD TOWN
BOARD LEGISLATION A. Type of Legislation Resolution XXX Local Law B. Title of
Proposed Legislation: Resolution Calling for a Public Hearing on the Town of
Riverhead, as Legislative Body for the Town of Riverhead and Governing Body of
the Community Development Agency, Designation of J. Petrocelli Riverhead Town
Square, LLC. as a Qualified and Eligible Sponsor for the Purchase and
Development of a Portion of Town-Owned Property Described as Sctm#
0600-129-1-Lots 13, 14 ,15 and Sctm# 0600-128-6-86.1) Located on the South Side
of Main Street, Riverhead, New York A RESOLUTION CALLING FOR A PUBLIC HEARING
ON THE TOWN OF RIVERHEAD, AS LEGISLATIVE BODY FOR THE TOWN OF RIVERHEAD AND
GOVERNING BODY OF THE COMMUNITY DEVELOPMENT AGENCY, DESIGNATION OF J. PETROCELLI RIVERHEAD TOWN
SQUARE, LLC. AS A QUALIFIED AND ELIGIBLE SPONSOR FOR THE PURCHASE AND
DEVELOPMENT OF A PORTION OF TOWN-OWNED PROPERTY DESCRIBED AS SCTM# 0600-129-1-LOTS
13, 14 ,15 AND SCTM# 0600-128-6-86.1) LOCATED ON THE SOUTH SIDE OF MAIN STREET,
RIVERHEAD, NEW YORK C. Purpose of Proposed Legislation: D. Will the Proposed
Legislation Have a Fiscal Impact? Yes No XXX E. If the answer to section D is
“yes”, select (a) or (b) below and initial or detail as applicable: (a) The
fiscal impact can be absorbed by Town/department existing resources set forth
in approved Town Annual Budget (example:routine and budgeted procurement of
goods/services)*if selecting E(a), please initial then skip items F,G and
complete H,I and J; or (b) The description/explanation of fiscal impact is set
forth as follows: F. If the answer to E required description/explanation of
fiscal impact (E(b)), please describe total Financial Cost of Funding over 5
Years G. Proposed Source of Funding Appropriation Account to be Charged: Grant
or other Revenue Source: Appropriation Transfer (list account(s) and amount):
H. Typed Name & Title of Preparer: Karen Occhiogrosso I. Signature of Preparer
J. Date 6/20/25 K. Accounting Staff Name & Title Jeanette DiPaola, L.
Signature of Accounting Staff Jeanette DiPaola M. Date 6/23/25 9.22 Packet Pg.
173 NOTICE OF PUBLIC HEARING TOWN OF RIVERHEAD AND TOWN OF RIVERHEAD COMMUNITY
DEVELOPMENT AGENCY TOWN OF RIVERHEAD, SUFFOLK COUNTY, NEW YORK NOTICE IS HEREBY
GIVEN, that the Town of Riverhead, by its Town Board as legislative body of the
Town of Riverhead and governing body of the Community Development Agency, Town
of Riverhead, Suffolk County, New York will hold a public hearing at Riverhead
Town Hall, 4 West Second Street, Riverhead, New York 11901, on July 22, 2025 at
6:00 pm, prevailing time, pursuant to General Municipal Law 507(2)(d) for the
purpose of considering whether J. Petrocelli Riverhead Town Square, LLC.,
having its principal offices located at 100 Commack Street, Ronkonkoma, New
York 11779 (previously designated "Master Developer) should be designated
the "qualified and eligible sponsor" for the sale and redevelopment
of a portion of property described as SCTM# 0600-129-1-Lots 13,14, 15 and SCTM#
0600-128-6-86.1 located on the south side of Main Street, Riverhead, New York
pursuant to a certain proposed Master Developer Agreement outlining the sale, transfer and
redevelopment of the properties, which said Master Developer Agreement is on
file in the office of the Town Clerk of the Town of Riverhead and is available
for public inspection during regular business hours. Pursuant to the
Master Developer Agreement, J. Petrocelli Riverhead Town Square, LLC. will
redevelop the property it acquires in accordance with the Intended Development
Plan more fully described in the Master Developer Agreement, to wit: to
construct a mixed use
five-story building consisting of up to 76 hotel rooms and 12 condominium units,
with restaurant space and retail space (retail wet use approx. 976 sq ft; dry
retail approx. 2,339 sq. ft; and restaurant approx.. 133 seat) and underground
parking (12 stalls) on a portion of Lot 14, Lot 13, Lot 15, small portion of
SCTM# 0600-128-6-Lot 86.1. and
easement over portions of Lot 14 to be retained by the Town and easement over a
portion of small portion of SCTM# 0600-129-1-Lot 23 collectively known as the
“Town Square Hotel Project ” (the “Project”). At said public hearing,
the Town of Riverhead, by its Town Board as legislative body of the Town of
Riverhead and governing body of the Community Development Agency, will hear all
persons interested in the subject matter thereof. Dated: Riverhead, New York
July 1, 2025 BY ORDER OF THE TOWN BOARD OF THE TOWN OF RIVERHEAD AS THE
GOVERNING BODY OF THE TOWN OF RIVERHEAD COMMUNITY DEVELOPMENT AGENCY
Photos and artist renderings of Town Square design
https://saveepcal.blogspot.com/2025/06/town-square-with-hotelcondo.html
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