Calverton resident Greg Fischer has filed a $10 million notice of claim against the Town of Riverhead, members of the town board, the town attorney, the community development director and the Riverhead Republican Committee, seeking to stop the sale of the Second Street firehouse to Robert Castaldi.
Filing the claim “on his own behalf, and on behalf of similarly situated taxpayers of the Town,” Fischer complains that the sale was politically motivated, that the sale price of $500,000 was set without an appraisal and that the town board’s vote to change the site’s zoning to increase allowed uses of the site increased the property’s value. It all adds up to a “a waste of town assets and [an] illegal and unconstitutional gift of town assets without proper consideration and in violation of lawful procedure.”
The $700,000 in two state economic development grants obtained by the town for improvement of the site, Fischer says in the notice, “shocks the senses, and begins to value this larceny under color of law, and the depth of the plan for the obfuscation of local, state and federal public monies and properties for private purposes.”
Alleging that Castaldi is a political contributor to the elected officials and the Republican committee, Fischer argues that the contract with Castaldi, approved by the Town Board in July, was made without “a legitimate offering to the public in violation of the General Municipal Law.”
The notice continues:
“Defendants have refused to offer the property to other parties in accordance with the requirements of the General Municipal Law for sale, failed to issue a new request for proposals or offer the property for sale by public auction or sealed bids and instead entered into private negotiations with Defendant Walter’s campaign donor and supporter Robert Castaldi to arrange for what amounts to a giveaway of this Town asset without proper consideration at about 1/3 of its last appraised value.”
Fischer filed the notice of claim Tuesday afternoon. State law requires any person or entity planning to sue a municipality to file a notice of claim before commencing actual litigation.
The claim says he will seek an injunction preventing the sale of the old firehouse as well as punitive damages of $10 million “to punish defendants for wilful disregard of lawful procedure and to deter future misconduct.”
Supervisor Sean Walter declined comment on the substance of the notice of claim because it is pending litigation.
“I have discussed it with the town attorney and I am confident we will dispose of this in short order,” Walter said Wednesday.
“All the town board has to do is halt the deal in progress and restart it legally; immediately thereafter, the cause of action disappears and the taxpayers are benefited at the same time,” Fischer said.
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