Walmart plans to convert Riverhead location into supercenter

A proposal to expand a luxury hotel in Southampton Village has won preliminary approval for $1.64 million in tax breaks.

The Suffolk County Industrial Development Agency gave an early go-ahead to the tax breaks for the proposed 40-room hotel on Hill Street. The project, which will have eight units of workforce housing, is next to the Southampton Inn, a 90-room hotel. The owners are the same.

Alek Lewis reports in NEWSDAY that the average nightly rate at the new hotel, which will feature a heated pool, is expected to peak at around $800 in July and August, according to a market analysis prepared by the property's owner. An office building on the property will be converted into eight one-bedroom workforce apartments. Another office building will be refurbished.

The $29 million project is expected to generate a “net public benefit” of $2.5 million over 15 years, said Kevin Gremse, of Grow America, a consulting firm that works for the IDA. Gremse cited a likely revenue boost from Suffolk County's 5.5% hotel occupancy tax.

"This is a shot in the arm for the village and the community, and the people who choose to live there on a year-round basis. They need it,” said Dede Gotthelf, owner of the Southampton Inn and managing partner of 71 Hill LLC, which owns the property, during a recent presentation to the IDA.

But the proposal has drawn some criticism from public officials. An IDA member who opposed the relief said locals will likely be priced out of the hotel. A Southampton Village trustee said the project should include more workforce apartments.

Josh Slaughter cast the lone vote against the preliminary tax breaks during the IDA's meeting on Jan. 29. The owner could hike room rates and not need the public assistance, Slaughter said at that meeting.

The Suffolk County IDA has scheduled a Feb. 20 hearing on the tax relief. A final vote is expected on Feb. 26.

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Walmart is planning to convert its Riverhead store into a supercenter, the national retailer’s one-stop shopping destination, combining a full-service supermarket offering groceries, bakery, deli, meats and produce with a discount department store. Denise Civiletti reports in Riverheadlocal.com that Walmart representatives met yesterday with Riverhead Planning Department staff to discuss the company’s plans during a pre-submission conference at Riverhead Town Hall.

The footprint of the existing store, currently about 167,000 square feet including the outdoor garden center, would be expanded to about 180,000 square feet under the current plans, according to engineer Alek Kociski of Bohler Engineering.

The plan is to build an addition in the area presently occupied by the outdoor garden center and convert the tire center, which is not active, into retail space. The entire interior of the store will be redesigned to accommodate the new supermarket’s offerings.

The expansion will require the purchase of development rights to allow additional floor area in the shopping center, Riverhead Senior Planner Greg Bergman told the Walmart representatives. The developer in 2010 purchased 41 development rights to build the original center, to develop the Walmart store and the other buildings on the site.

The expansion plan will require no variances, Walmart attorney Brian Kennedy said.

Suffolk County DPW may ask for a traffic study, Bergman said.

Since the supercenter will have a deli and a bakery, grease traps are needed, so that requires health department approval, Senior Planner Matt Charters said.

Jason Klipa, Walmart’s director of public affairs for New York said he couldn’t estimate when the company will file its application for an amended site plan approval, but it will begin working on preparing the necessary documents. The “next closest thing” to the Riverhead supercenter would be the Yaphank Walmart, which opened about six or seven years