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.
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.
- Reject developer blackmail. There is too much profit to be made. Joe won't walk away if you have the courage to say no.
- Protect the tax revenue of the Riverhead schools.
- 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?
- Be mindful of the cost to the Suffolk Theater, Maximus Gym, Robert James Salon and Goldberg Bagels of lost convenient parking.
- Serve the community not special interests as with your denial of the Ghermezians' deal for EPCAL
The Greenport alternative
https://tinyurl.com/newtownsquare
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