That's $47 million less than originally agreed upon for the huge swath of land at the former Northrop Grumman jet assembly plant site, where Riverhead Resorts hopes to build eight themed hotels and resorts.
The project has gained worldwide notoriety due to the inclusion of an indoor ski mountain, which at one point was billed as potentially the largest such facility in the world.
Under the newly proposed sales agreement, $100 million would go toward the land and $8 million would be earmarked for a community center and new animal shelter in Calverton, according to Mr. Walter and Mitch Pally, an attorney for Riverhead Resorts. That total price tag would also include nonrefundable payments Riverhead Resorts has already made to the town.
Riverhead Resorts originally went to contract with the town in early 2008 for $155 million, but late last year asked to lower the price, citing the weak economy.
The new price means the town will need to hold another public hearing to determine if Riverhead Resorts is a "qualified and eligible" sponsor, which is required under state law before the town can sell its Urban Renewal properties. The process aims at determining whether developers have the ability and financial means to carry out proposed projects. The town in 2008 declared Riverhead Resorts was qualified.
Mr. Walter is hoping to hold that hearing next month.
Mr. Pally said Riverhead Resorts is "committed to" finalizing the sale in calendar year 2010, as requested by Mr. Walter. If the deal doesn't close this year, town officials have said, Riverhead will face a budget deficit that could reach $7.3 million for 2011. Mr. Pally said Riverhead Resorts is working to finalize some details on its financing for the project, which he expects will be completed within a month.
"We made a commitment to the supervisor that we would close with the town on this deal in calendar year 2010, and we are working diligently to make that happen," Mr. Pally said.
As with the original contract, the revised contract still calls for the town to share in a percentage of the revenues generated by the project, Mr. Pally said.
Under the new deal, Mr. Walter wants to see the town get paid once the subdivision separating the land from the rest of the town-owned property in Calverton is completed. Under the original agreement, the town would not have received proceeds from the sale until Riverhead Resorts received all town and agency approvals needed to move forward with its project, which would be bigger than Disneyland in California.
"We've been working on the subdivision since Nov. 4," Mr. Walter said.
Mr. Pally said the specific details of the project, including the ski mountain, could change during the review process.
tgannon@timesreview.com