The proposed project has an estimated cost of between $110 and $125 million. It will include 243 apartments, more than 2,300 sq. ft. of retail and 12,000 sq. ft. of commercial space. There will also be a four- or five-story parking garage with 420 to 520 spaces.
The development team won over five other finalists to redevelop the lot surrounding Railroad Street and Osborne Avenue. RXR, led by Scott Rechler with a Long Island office, will be the majority partner. David Gallo’s Georgica Green, an affordable housing developer, is the second partner.
The published report says Riverhead received grant funding from the state years ago to create a revitalization plan and new zoning, as well as to issue a request for proposals from developers.
“It’s really about bringing investment and people into that area that has really been underutilized and blighted for many years,” Dawn Thomas, the town’s community development director, was quoted by Newsday as saying.
The next step is for the town to negotiate an agreement with the developers, followed by the submission of a site plan application. If all goes well, developers could receive approval for the project within a year.
Joe Graziose, RXR’s executive vice-president of residential development and construction, said the developers plan to begin work within 18 months. Construction is estimated to take about three years.
The town’s transit-oriented development committee expressed concerns, including issues regarding safety, parking and lighting. The developers adjusted the project design, helping to secure their selection as master developers.
“Our goal is to bring vibrancy and connectivity between the (transit-oriented development), the bus depot area and the plaza we’re building, and create excitement to bring people into Riverhead,” Graziose told Newsday.