Town Board Terminates Riverhead Resorts Deal

As he said he would earlier this week, Supervisor Sean Walter voted to formally terminate the town's contracts with Riverhead Resorts, helping to close the books on a proposed $155-million resort proposed for Enterprise Part at Calverton which has recently divided the Town Board on what to do with the former Grumman property.

"I always felt I knew how this movie would turn out," Walter said in a statement, referring to the 'pay-per-view' process he felt Riverhead Resorts has offered in sporadic payments. "But I was willing to give it some time just to be sure."

Along with Walter, Councilman Jim Wooten, and as expected, Councilman George Gabrielsen and Councilwoman Jodi Gilgio all voted to end the contract.

"Finally we have got the 800-pound gorilla off our backs," said Gabrielsen. "The town board can move in a different direction toward a well thought out subdivision, and we can now realize this property's real potential as an economic driving engine driving this town for generations to come."

John Niven, principle of '800-pound gorilla,' said on Friday afternoon that he will continue to pursue his project, going so far as to still wire $3.9 million as early as Friday afternoon, or potentially Monday. It was unclear how that would be received, he said, as he was only able to speak with one member of the board before the meeting (Councilman John Dunleavy).

"Payment is imminent," he said, adding that the recession has made financing more difficult than it was when the project began. "Once that comes, we'll come back to the board and build bridges. We've had a good relationship up until now, but just as I am, the board members are frustrated.

"At the end of the day, you have to look at the big picture" Niven said. "The big picture is a destination resort probably unequaled in the world. This will put Riverhead on the world map for good. And with the tax dollars the project would generate for the town, the taxpayers would win."

Wooten, who had previously opposed formally terminating Riverhead Resorts' contracts  - arguing that the contracts were null and void in June, when its first deadline passed - voted with the majority, leaving Dunleavy the sole vote in opposition. Wooten had opposed the Riverhead Resorts project when it was originally proposed he said, believing it was too grandiose. However, he said by supporting the tax roll, giving taxpayers over $7 million in non-refundable deposits over the years, Riverhead Resorts "paid for his respect."

"This particular resolution by no means eliminates Riverhead Resorts," Wooten said during the meeting. "It's going to go into a process where we're going to subdivide the land, and I'm sure they'll be part of the people coming back, probably at a lesser rate than they're paying now."

Dunleavy remained steadfast in his opposition to formally terminating the contract with a resolution.

"I don't see why we had to have an emergency meeting to cut the contract with them when we really don't have a contract with them now," he said.  Dunleavy added that Resorts' principle John Niven had reached out to him before the vote, assuring him that the money would be wired by Monday. "Some people in this town got aggravated - the Supervisor - and he wanted to do it just to spite them and I don't think it's the proper thing to do."

After Riverhead Resorts' lawyer , the check was , citing security concerns. Walter dismissed the delay as an excuse, adding that he had asked for a wire transfer originally anyways.

Walter then said he would give Riverhead Resorts until Friday to wire the money, but when the money hadn't arrived by Wednesday, Walter said he was through.

"I've given them every opportunity to make their payments," he said. "I've done everything I can to help them. Enough is enough."