{"id":127343,"date":"2025-07-16T06:00:00","date_gmt":"2025-07-16T10:00:00","guid":{"rendered":"https:\/\/riverheadnewsreview.timesreview.com\/?p=127343"},"modified":"2025-07-16T11:44:29","modified_gmt":"2025-07-16T15:44:29","slug":"july-22-hearing-set-for-town-square-master-developer","status":"publish","type":"post","link":"https:\/\/riverheadnewsreview.timesreview.com\/2025\/07\/127343\/july-22-hearing-set-for-town-square-master-developer\/","title":{"rendered":"July 22 hearing set for Town Square master developer"},"content":{"rendered":"\n

The qualified and eligible sponsor hearing for the designation of J. Petrocelli as master developer of the Town Square project<\/a> is scheduled for Tuesday, July 22, at 6 p.m. and the 130-page draft of the agreement is now available for the public to review.<\/p>\n\n\n\n

The Riverhead Town Board approved a resolution in April 2022<\/a> to designate J. Petrocelli Development Associates as master developer for the Town Square project. Joe Petrocelli has been credited for his previous contributions to Riverhead\u2019s downtown revitalization, from the Long Island Aquarium to Hyatt Place East End to the Preston House.<\/p>\n\n\n\n

If officially deemed the qualified and eligible sponsor for the Town Square project, the $2.65 million sale of three East Main Street properties to J. Petrocelli would be approved. The buildings at 117 and 121 East Main St. were demolished by the town in 2022, and 127 East Main St., where Craft\u2019D eatery resides, may be acquired through eminent domain proceedings.<\/p>\n\n\n\n

The Town Square project has six components: the upper and lower Town Square, including a proposed playground and splashpad; the amphitheater; \u201ccomplete streets\u201d or streetscapes<\/a>; a boutique hotel; and a parking garage. This initiative is possible thanks to multiple funding grants the town has obtained over the years, including a $24 million federal RAISE grant<\/a> and a $10 million state Downtown Revitalization grant.  <\/p>\n\n\n\n

Two historic East End Arts Council<\/a> buildings at 133 and 141 East Main St. will be uprooted and relocated to create the “sustainable and flood resilient amphitheater” to be located on a portion of these parcels. The property’s grading will be changed to protect the campus from flooding and the EEAC will temporarily operate out of 206 Griffing Ave. during this construction period.<\/p>\n\n\n\n

J. Petrocelli\u2019s hotel project consists of a five-story, mixed used building with up to 76 hotel rooms and 12 condominium units, along with restaurant and retail space at 127 East Main St. and 12 underground parking stalls. The $2.65 million total price tag also includes funding commitments of up to $660,000 through grant applications made by J. Petrocelli for the hotel and Town Square projects. The contract stated the master developer would be responsible for the operation and maintenance of the Town Square for 10 years at a rate of $150,000 per year.<\/p>\n\n\n\n

The contract stated J. Petrocelli may formally apply for a payment in lieu of taxes \u2014 or PILOT \u2013 an agreement from the Riverhead IDA \u201cto secure economic benefits related to the project.\u201d This means the developer would be exempt from paying standard property taxes in full, but would instead negotiate an agreement with the Riverhead IDA to make these payments in phases or increments.<\/p>\n\n\n\n

In cultivating its Recommended Action Plan, or RAP, the master developer would work with outside consultants and town planning, engineering, water and sewer district staff to produce concepts, designs and a construction schedule. The RAP would also include any necessary zoning code amendments. Once members are identified for the Master Developer Project and the Town Project teams, the individuals will be responsible for meeting monthly, and within 30 days of the agreement\u2019s execution, the team can establish a list of milestones and target dates.<\/p>\n\n\n\n