Ski Resort to be built in Riverhead LI
Opening the door to the biggest recreational project ever proposed on Long Island, Riverhead officials have picked the firm to build a huge theme park and resort featuring a 350-foot indoor ski mountain that could be seen for miles.
The project would transform 755 acres, one of the last remaining large vacant parcels in downstate New York.
Riverhead's town board, hoping to lure millions of dollars and tens of thousands of tourists, voted 4-1 to start negotiations with Riverhead Resorts to build the theme park, including a water park and sports complex, in Calverton.
The $155 million pricetag on the land would be enough 'to let us retire all of our town debt and still have 100 million bucks in the bank from this one deal,' Supervisor Philip Cardinale said.
Cardinale said the project would have an immediate fiscal impact, significantly reducing taxes by providing a steady annual revenue stream of $10 million and swelling Riverhead's tax base.
'They will have 3.8 million square feet of floor area. ... Our assessor estimates that could be 10 percent of our town's tax base,' he said.
Not everyone was so confident. Town Councilman Ed Densieski, the sole vote against it, said he thought the proposed resort was overly ambitious and would never be built.
'The town board is making a big mistake,' Densieski said, saying the competing developer had offered a more realistic proposal, an auto racing center.
The board picked Riverhead Resorts' plan to buy and develop 755 acres of vacant town-owned land. Riverhead Resorts expects to spend between $1 billion and $1.5 billion over the next decade to construct a park that will also feature a snowboarding center, spa, wilderness resort and camping area.
There will also be a conference center with a 100,000 square-foot exposition hall for product and trade shows and conferences, 2,200 hotel rooms and 2,000 timeshare units.
The project will stand where Grumman Aerospace used to assemble and test F-14 jet fighters. That runway will be torn out and some of the pine woods that surround it leveled.
The vote by the town board, acting as the Riverhead Community Development Agency, does not close the sale, but simply designates Riverhead Resorts Llc as the developer.
Town officials are already talking about using a rail spur to bring in supplies, and carving out new roads, park-and- ride centers or bus routes to bring visitors. But construction - under the most optimistic schedule - would not start until 2010.
Mitch Pally, attorney for Riverhead Resorts, expects the two sides to reach an agreement by the end of the year, but the required state environmental review will mean actual construction won't start for more than two years.
'The full project will probably take 10 years to complete,' he said.
There was one other bidder for the property, RexCorp/ Long Island Destination Group, which offered $152.5 million for the land.
The group planned to develop it as an auto racing and recreation center, with three tracks, an equestrian center, an indoor water park, ice rink and stands to seat 10,000 people.
Rex Farr, president of the Greater Calverton Civic Association, said he was pleased with the town board's vote. 'We've been against auto racing from the get-go,' he said. 'Most of us believe that something will be done out there and we prefer Riverhead Resorts' more passive use.'
He said that, given his choice, the 755 acres would remain undeveloped, or perhaps farmed with oats and corn. But, Farr added, the property is too valuable to remain unsold. 'This is [nearly] 800 acres of the last prime real estate on the East End. People have been salivating over this for the last 10 years,' he said.
In February, Newsday disclosed that Scottish developer Tom Stewart, the key backer of a plan to build a 500-foot- high indoor ski resort on the Calverton property, did not have the $100 million in equity that he claimed. Stewart is no longer associated with the group.
Matt Frank of RexCorp, who made the group's presentation to the town, said he was disappointed in the town's decision. 'I believe the other proposal was what the town wanted to be representative at the gateway to Riverhead,' he said. 'They feel that type of project is more in keeping with the nature of how they see their community. I have serious concerns if it will come to fruition as presented.'
WHAT?S NEXT
Lawyers for Riverhead Town and Riverhead Resorts will draw up a contract spelling out what the firm will build, services provided by the town, infrastructure improvements and how the developer will pay the town the $155-million price tag.
Before that contract can be signed, Riverhead Resorts must undergo a public Qualified and Eligible sponsor hearing at which the company must show it has the experience to build such a large project and a firm financial commitment to pay for it.
The entire project must also undergo a state environmental impact study, looking at everything from groundwater pollution to air quality affected by traffic. Developers must agree to measures minimizing or eliminating that impact.
If any part of the project does not conform to the town's zoning code, an exemption can be granted by Riverhead's Zoning Board of Appeals.
Construction, which will be monitored by town inspectors, is expected to begin in about 2 1/2 years.
The developers and town officials say that, ultimately, thousands of construction jobs will be created and about 2,000 permanent positions will have to be filled on a year-round basis.
The developers expect between a million and a million and a half people to come to the resort complex each year.
Thinking big
The Riverhead Resorts plan calls for eight themed parks to be built on the old Grumman site in Calverton.
RESORT AT A GLANCE
Size 755 acres
Cost Up to $1.5 billion for construction of resort
Amenities 8 themed resorts, 2,000 time shares and 2,200 hotel rooms throughout site
Completion Roughly 2020
Sports Lifestyle Resort
Ballfields plus fitness, tennis and aquatics facilities
Wilderness Resort
A lodge, wooded campground, kayaking areas
Equine Resort
Arenas for horseback training, shows, competition
Rejuvenating Resort
Gardens, spa, wellness center
Mountain Resort
35-story indoor ski mountain, with hockey and skating rink
Heritage & Entertainment Resort
For the family; shops, restaurants, farmer's market, cafes
Lake
90 acres, with boat rentals, boardwalk, bike paths
Water Adventure Resort
Water rides, white sand beach, river, coral reef
Conference Resort
For conventions, exhibits, concerts
New Heights
How other East End structures stack up against the ski mountain:
Big Duck 20 feet
Tanger Outlet Center sign 55 feet
Cliff Diver ride Splish Splash 80 feet
Montauk Point Lighthouse 110 feet
Riverhead Resorts ski mountain 350 feet
The project would transform 755 acres, one of the last remaining large vacant parcels in downstate New York.
Riverhead's town board, hoping to lure millions of dollars and tens of thousands of tourists, voted 4-1 to start negotiations with Riverhead Resorts to build the theme park, including a water park and sports complex, in Calverton.
The $155 million pricetag on the land would be enough 'to let us retire all of our town debt and still have 100 million bucks in the bank from this one deal,' Supervisor Philip Cardinale said.
Cardinale said the project would have an immediate fiscal impact, significantly reducing taxes by providing a steady annual revenue stream of $10 million and swelling Riverhead's tax base.
'They will have 3.8 million square feet of floor area. ... Our assessor estimates that could be 10 percent of our town's tax base,' he said.
Not everyone was so confident. Town Councilman Ed Densieski, the sole vote against it, said he thought the proposed resort was overly ambitious and would never be built.
'The town board is making a big mistake,' Densieski said, saying the competing developer had offered a more realistic proposal, an auto racing center.
The board picked Riverhead Resorts' plan to buy and develop 755 acres of vacant town-owned land. Riverhead Resorts expects to spend between $1 billion and $1.5 billion over the next decade to construct a park that will also feature a snowboarding center, spa, wilderness resort and camping area.
There will also be a conference center with a 100,000 square-foot exposition hall for product and trade shows and conferences, 2,200 hotel rooms and 2,000 timeshare units.
The project will stand where Grumman Aerospace used to assemble and test F-14 jet fighters. That runway will be torn out and some of the pine woods that surround it leveled.
The vote by the town board, acting as the Riverhead Community Development Agency, does not close the sale, but simply designates Riverhead Resorts Llc as the developer.
Town officials are already talking about using a rail spur to bring in supplies, and carving out new roads, park-and- ride centers or bus routes to bring visitors. But construction - under the most optimistic schedule - would not start until 2010.
Mitch Pally, attorney for Riverhead Resorts, expects the two sides to reach an agreement by the end of the year, but the required state environmental review will mean actual construction won't start for more than two years.
'The full project will probably take 10 years to complete,' he said.
There was one other bidder for the property, RexCorp/ Long Island Destination Group, which offered $152.5 million for the land.
The group planned to develop it as an auto racing and recreation center, with three tracks, an equestrian center, an indoor water park, ice rink and stands to seat 10,000 people.
Rex Farr, president of the Greater Calverton Civic Association, said he was pleased with the town board's vote. 'We've been against auto racing from the get-go,' he said. 'Most of us believe that something will be done out there and we prefer Riverhead Resorts' more passive use.'
He said that, given his choice, the 755 acres would remain undeveloped, or perhaps farmed with oats and corn. But, Farr added, the property is too valuable to remain unsold. 'This is [nearly] 800 acres of the last prime real estate on the East End. People have been salivating over this for the last 10 years,' he said.
In February, Newsday disclosed that Scottish developer Tom Stewart, the key backer of a plan to build a 500-foot- high indoor ski resort on the Calverton property, did not have the $100 million in equity that he claimed. Stewart is no longer associated with the group.
Matt Frank of RexCorp, who made the group's presentation to the town, said he was disappointed in the town's decision. 'I believe the other proposal was what the town wanted to be representative at the gateway to Riverhead,' he said. 'They feel that type of project is more in keeping with the nature of how they see their community. I have serious concerns if it will come to fruition as presented.'
WHAT?S NEXT
Lawyers for Riverhead Town and Riverhead Resorts will draw up a contract spelling out what the firm will build, services provided by the town, infrastructure improvements and how the developer will pay the town the $155-million price tag.
Before that contract can be signed, Riverhead Resorts must undergo a public Qualified and Eligible sponsor hearing at which the company must show it has the experience to build such a large project and a firm financial commitment to pay for it.
The entire project must also undergo a state environmental impact study, looking at everything from groundwater pollution to air quality affected by traffic. Developers must agree to measures minimizing or eliminating that impact.
If any part of the project does not conform to the town's zoning code, an exemption can be granted by Riverhead's Zoning Board of Appeals.
Construction, which will be monitored by town inspectors, is expected to begin in about 2 1/2 years.
The developers and town officials say that, ultimately, thousands of construction jobs will be created and about 2,000 permanent positions will have to be filled on a year-round basis.
The developers expect between a million and a million and a half people to come to the resort complex each year.
Thinking big
The Riverhead Resorts plan calls for eight themed parks to be built on the old Grumman site in Calverton.
RESORT AT A GLANCE
Size 755 acres
Cost Up to $1.5 billion for construction of resort
Amenities 8 themed resorts, 2,000 time shares and 2,200 hotel rooms throughout site
Completion Roughly 2020
Sports Lifestyle Resort
Ballfields plus fitness, tennis and aquatics facilities
Wilderness Resort
A lodge, wooded campground, kayaking areas
Equine Resort
Arenas for horseback training, shows, competition
Rejuvenating Resort
Gardens, spa, wellness center
Mountain Resort
35-story indoor ski mountain, with hockey and skating rink
Heritage & Entertainment Resort
For the family; shops, restaurants, farmer's market, cafes
Lake
90 acres, with boat rentals, boardwalk, bike paths
Water Adventure Resort
Water rides, white sand beach, river, coral reef
Conference Resort
For conventions, exhibits, concerts
New Heights
How other East End structures stack up against the ski mountain:
Big Duck 20 feet
Tanger Outlet Center sign 55 feet
Cliff Diver ride Splish Splash 80 feet
Montauk Point Lighthouse 110 feet
Riverhead Resorts ski mountain 350 feet
