Riverhead bar Craft'D will close after town seizes lease through eminent domain

A downtown Riverhead bar set a Sept. 20 closing date after the town successfully seized the building using eminent domain.

State Supreme Court Justice John Leo signed an order Wednesday granting the town’s petition to acquire the lease held by SNR Bar 25 Corp., which has run Craft'D at 127 E. Main St. since 2019.

Completing the eminent domain proceeding means plans for Riverhead’s new town square can proceed. In August, Riverhead inked a deal with developer Joe Petrocelli to build the square, which will feature a hotel and condos, public gathering space, a playground and an amphitheater on the Peconic River.

Sean Kenna, who co-owns the bar, pleaded with the town to reconsider at public hearings earlier this year. "Unfortunately, it was inevitable," he said in a text message Saturday. "We tried but the town is moving forward with their plan."

The business announced it will close Sept. 20.

“After 6 incredible years of cooking, serving, laughing, and sharing memories, our time here has come to an end due to the town's decision to move forward with their project,” the owners wrote in a Facebook post.

Petrocelli plans to raze the building at 127 E. Main St. and replace it with a five-story hotel, condos, retail and restaurant space, a $32 million project.

The Craft'D building is one of three Riverhead Town acquired in 2021 to make way for the new town square. Riverhead paid $2.65 million for the building at 127 E. Main St., $950,000 for 121 E. Main St. and $1.25 million for 117 E. Main St. It demolished the latter two to make space for the square.

Under state law, government agencies can take private property if the purpose meets two criteria: It must be for public use, and just compensation must be paid.

Because the town owns the building, the eminent domain petition was used to acquire the remaining years on Craft'D's lease. The board previously approved a $120,000 settlement offer with the bar owners, though it’s unclear if they have accepted.

Craig Blanchard, an attorney for SNR Bar Corp. from the Smithtown-based Kritzer Law Group, did not respond to an email seeking more information Saturday.

Riverhead Town Supervisor Tim Hubbard declined to comment on the outcome Saturday.

The bar will hold a “drink the bar dry” event on Sept. 20 starting at noon with discounted drinks, a food buffet and DJ at 8 p.m., according to the social media post.

“This bar has been so much more than a place to drink and eat. It’s been our home, your gathering spot, and the backdrop to countless first dates, birthdays, wedding after parties and reunions,” the owners wrote. “We’ve made lifelong friends behind the bar. And we’ve felt the love from this community every single day.”

The Riverhead Town Board in June adopted findings in support of the eminent domain procedure, ruling that the acquisition “will benefit the public” and is for “general municipal purposes,” despite some opposition from residents who felt the hotel had no direct public benefit.