chevymadman
06-27-2007, 02:23 PM
BusinessRexcorp downsizes racetrack in its Calverton bid
BY DANIEL WAGNER
daniel.wagner@newsday.com
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June 27, 2007
RexCorp president Scott Rechler and his team demurred on many specifics but offered the Riverhead Town Board flexibility yesterday as his team presented its concept for EPCAL Centre, a billion-dollar multi-use resort they hope to build on 755 acres of town-owned land in Calverton.
"This is a work in progress," Rechler said. As board members peppered him with questions, Rechler asked them to suspend those concerns and focus on the differences between the two $100-million bids for the land. Unlike the recent bidding war that erupted over 300 acres of industrial land in Calverton, he said, this process should depend on which bid will yield greater long-term benefits to the town.
"I applaud you for going through that," Rechler said of the industrial sale process, but he said EPCAL Centre and Riverhead Resorts are offering substantially different visions.
But Riverhead Supervisor Phil Cardinale said the suggestion that financial negotiations could be deferred while the town chose between proposed resorts was "not persuasive."
"The problem is, price is a factor," Cardinale said. "You can't just remove it from the equation ... especially when, in truth, these are not vastly different proposals."
EPCAL is short for Enterprise Park at Calverton. Rechler said EPCAL Centre will "enhance the long-term vitality of Riverhead much quicker than the alternative" by creating a "sustainable community" of people who would buy stakes in housing on the property and stay there for a few weeks at a time.
Another major difference: EPCAL Centre's largest proposed element is a 10,000-seat racetrack; Riverhead Resorts' is an indoor ski mountain. Both contain multiple elements. In EPCAL Centre's case, these include an equestrian center and a hotel-resort-retail complex with a 100,000-square-foot conference center, and a motor sport area with a road course. Included are about 680 housing units whose ownership structure would prevent buyers from enrolling children in local schools.
The only major change to EPCAL Centre since the March town presentation was the downsizing of the racetrack from 80,000 seats to 10,000 - a decision Rechler said was prompted by community groups.
Cardinale suggested the larger question before the board was whether a "high-intensity" project was suitable, or whether the board should solicit alternate proposals to trade off development dollars for a reduced impact on the community.
But Councilman Ed Densieski said he was ready to move: "If you won't take them [RexCorp] to contract, who will you take?"
Jack O'Connor, a Newmark Knight Frank broker who advises Riverhead on real estate dealings, was skeptical about EPCAL Centre's attempt to avert a bidding war.
"Even if they pick somebody to negotiate with, if someone comes in with a higher price, the town is bound to listen to them," he said. And Cardinale said during the work session that Riverhead Resorts was planning to present a higher bid soon.
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BY DANIEL WAGNER
daniel.wagner@newsday.com
Email this story
Printer friendly format
June 27, 2007
RexCorp president Scott Rechler and his team demurred on many specifics but offered the Riverhead Town Board flexibility yesterday as his team presented its concept for EPCAL Centre, a billion-dollar multi-use resort they hope to build on 755 acres of town-owned land in Calverton.
"This is a work in progress," Rechler said. As board members peppered him with questions, Rechler asked them to suspend those concerns and focus on the differences between the two $100-million bids for the land. Unlike the recent bidding war that erupted over 300 acres of industrial land in Calverton, he said, this process should depend on which bid will yield greater long-term benefits to the town.
"I applaud you for going through that," Rechler said of the industrial sale process, but he said EPCAL Centre and Riverhead Resorts are offering substantially different visions.
But Riverhead Supervisor Phil Cardinale said the suggestion that financial negotiations could be deferred while the town chose between proposed resorts was "not persuasive."
"The problem is, price is a factor," Cardinale said. "You can't just remove it from the equation ... especially when, in truth, these are not vastly different proposals."
EPCAL is short for Enterprise Park at Calverton. Rechler said EPCAL Centre will "enhance the long-term vitality of Riverhead much quicker than the alternative" by creating a "sustainable community" of people who would buy stakes in housing on the property and stay there for a few weeks at a time.
Another major difference: EPCAL Centre's largest proposed element is a 10,000-seat racetrack; Riverhead Resorts' is an indoor ski mountain. Both contain multiple elements. In EPCAL Centre's case, these include an equestrian center and a hotel-resort-retail complex with a 100,000-square-foot conference center, and a motor sport area with a road course. Included are about 680 housing units whose ownership structure would prevent buyers from enrolling children in local schools.
The only major change to EPCAL Centre since the March town presentation was the downsizing of the racetrack from 80,000 seats to 10,000 - a decision Rechler said was prompted by community groups.
Cardinale suggested the larger question before the board was whether a "high-intensity" project was suitable, or whether the board should solicit alternate proposals to trade off development dollars for a reduced impact on the community.
But Councilman Ed Densieski said he was ready to move: "If you won't take them [RexCorp] to contract, who will you take?"
Jack O'Connor, a Newmark Knight Frank broker who advises Riverhead on real estate dealings, was skeptical about EPCAL Centre's attempt to avert a bidding war.
"Even if they pick somebody to negotiate with, if someone comes in with a higher price, the town is bound to listen to them," he said. And Cardinale said during the work session that Riverhead Resorts was planning to present a higher bid soon.
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