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Politics & Government

After Giving Riverhead Resorts Until Friday, Walter Says, 'I'm Done'

"Even if I get the wire in time," Walter said, "I'm sending the money back."

Riverhead Supervisor Sean Walter said Wednesday that he would vote to terminate the town's contract with Riverhead Resorts – even if the company were to wire $3.9 million into a local escrow account, as agreed to, by Friday morning.

This marked an abrupt shift from the day before, when to wire the money before voting to terminate.

Asked why he had changed his mind, Walter said, "I've had it. I'm done, done, done." He added, "Even if I get the wire in time, I'm sending the money back."

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Walter has called a special Town Board meeting for Friday morning at 9:30 to vote on a resolution which, if passed, would officially end a contract signed in 2007 for Riverhead Resorts to purchase 755 acres at the Enterprise Park in Calverton to build a series of themed resorts, including one featuring an indoor ski slope.

On Tuesday, the supervisor had expressed irritation over what he described as Riverhead Resorts' "shenanigans." Among other things, he mentioned Barclays Bank's decision last Friday to issue a stop payment order on a check for $3.9 million that had been hand carried to a Town Board meeting two weeks ago.

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In explaining the stop payment order, Morton Weber, an attorney representing Riverhead Resorts, said that the bank was concerned about a breach of security after a close-up photo of the check had appeared on the internet. Weber said that Barclays needed to set up a new account and that it would take from three to five days to do so, a statement that Walter called "absurd."

Reached at his office in Dundee, Scotland, John Niven, Riverhead Resorts' chairman, said he was stunned and disappointed to learn of Walter's change of heart. He said he had tried several times on Wednesday to reach Walter by phone and was told that the supervisor was tied up in meetings.

"I would rather speak to Walter before I comment any further," Niven said.

Later on Wednesday, Niven initiated a call to Riverhead Patch. He noted that he was still unsuccessful in trying to speak with Walter, but said, "I would like to assure the people of Riverhead that we are determined more than ever to build this project.

"The 3.9 million they're talking about, we hope to have in place by Friday or at least by the early part of next week," Niven said. "We have spent millions of dollars on this project and it is not a game with us. We're for real. This means so much to myself and my family that I am available at all times."

A call from Riverhead Patch to Walter to ask whether he would call Niven back was not returned.

Councilwoman Jodi Giglio and Councilman George Gabriesen are already on record as opposing a contract reinstatement, especially at the lower purchase price of $108 million that Riverhead Resorts has requested, down from $155 million agreed to in the original contract.

Since Walter would represent the third vote against extending and reinstating the contract, it would become history on Friday, regardless of how Councilman Jim Wooten and John Dunleavy decide to vote.

Walter has said in the past that there is no need to terminate the contract because it was already terminated on June 15, when Riverhead Resorts failed to remit a contract extension payment of $3.9 million, as called for in its amended contract. Riverhead Resorts then missed another contract extension payment – this one for $1.9 million – on Sept. 15.

In order for the Town Board to accept any payments, Walter pointed out, the Town Board would first have to pass a resolution reinstating the contract, which now, he said, is not going to happen.

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