Riverhead Town will pay the owners of a downtown bar $170,000 to settle an eminent domain proceeding, paving the way for development of a boutique hotel as part of a new town square.

The town board voted 5-0 Tuesday to approve the agreement with SNR Bar 25 Corp., which has run Craft'D at 127 E. Main St. since 2019. Under the stipulation, the business agrees to vacate the building by Sept. 30 and the town must pay the $170,000 by Oct. 15.

Finalizing the settlement means the town’s master developer, Joe Petrocelli, can demolish the building. In its place, Petrocelli plans a $32 million mixed use building with hotel rooms, penthouse condos, shops and a restaurant.

Town Supervisor Tim Hubbard said Tuesday demolition could happen by the end of October.

"By time he gets that cleaned up and h

See Full Page