Thursday, August 13, 2026

Petition to RIDA

 PETITION to protect Riverhead Taxpayers

Say NO to IDA Subsidies for Private Hotel Development


We urge the Riverhead Industrial Development Agency (RIDA) to rigorously evaluate and completely reject the request by Joe Petrocelli for tax subsidies to his five story thirty four million dollar luxury tourist hotel that will dominate half of the new Riverhead Town Square.  


Petition QR Code  Sign the petition with QRL code or here https://www.change.org/rejecthotelsubsidy

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The Problem

Developer Joe Petrocelli is requesting tax subsidies through the Riverhead IDA for a proposed $34 million, five-story luxury hotel that will occupy half of the public Riverhead Town Square.

 

Tax abatements granted by the IDA directly reduce the local tax base for the developer. When large commercial developers receive tax relief, the financial burden shifts onto local homeowners, working families, and local school districts—including the Riverhead Central School District.

 

The Solution

We, the undersigned residents and taxpayers of Riverhead, urge the Riverhead IDA to completely DENY the application for tax subsidies for this commercial hotel project.

 

Why the IDA Must Deny Tax Relief

 

1. Economic Logic & Fiscal Responsibility (Logos)

 

Market Viability: A $34 million luxury hotel in a prime downtown location is a commercial enterprise that should stand on its own financial merits. Public tax dollars should not subsidize private profit margins.

 

Impact on School & Town Services: Tax breaks starve our public schools and municipal infrastructure of critical revenue. Taxpayers should not subsidize private development while managing their own household budgets and rising living costs.

Existing Public Support: The development already benefits from state grant funding and an annual $150,000 town commitment to maintain the adjacent Town Square. Additional tax relief is unnecessary.

 

2. Accountability, Due Diligence & Governance (Ethos)

 

Need for Independent Financial Vetting: Before considering any financial relief, the IDA must conduct thorough, independent due diligence. The board must examine the occupancy rates, room revenues, and profitability of the developer’s existing local properties (the Hyatt Place and Preston House).

 

Consistent Precedent: The IDA has previously shown the courage to protect public interest over special interests—such as denying tax concessions in the EPCAL deal. The board should maintain that standard of public stewardship here.

 

3. Protecting Local Businesses & Community Character (Pathos)

 

Support Local Main Street: Downtown Riverhead thrives because of established local businesses like the Suffolk Theater, Maximus Gym, Robert James Salon, and Goldberg’s Famous Bagels. Converting convenient parking and open public land for private hotel development directly hurts the existing business community.

 

Public Land for Public Good: The Town Square was created to serve all Riverhead residents as a vibrant waterfront gather spot, not to serve as discounted real estate for luxury tourism.

 

Sign the Petition

By signing, you join Riverhead residents in demanding that the IDA protect local taxpayers, support existing Main Street businesses, and reject unnecessary corporate tax subsidies.

 


  1. Reject developer blackmail.  There is too much profit to be made.  Joe won't walk away if you have the courage to say no.
  2. Protect the tax revenue of the Riverhead schools.
  3. Do serious independent due diligence.  What is Mr. Petrocelli's assured funding in addition to the benefit from State grants and $150,000 annual town payment to maintain the Square ?  What is the occupancy level, room rate and profit from his existing hotels, the  Hyatt and Preston House?
  4. Be mindful of the cost to the Suffolk Theater, Maximus Gym, Robert  James Salon and Goldberg Bagels of lost convenient parking.
  5. Serve the community not special interests as with your denial of the Ghermezians' deal for EPCAL
 
More background 

The Greenport alternative      https://tinyurl.com/newtownsquare

Board Resolution https://saveepcal.blogspot.com/2026/08/board-resolution-and-ida.html

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