Concerns about the economic viability of the venture capital group involved in the pending sale of $ 40 million of Enterprise Park land in Calverton have resurfaced in the wake of press reports that a subsidiary of the group has lost millions of dollars last year in a shopping mall project in New Jersey.
Representatives from venture capital group Calverton Aviation and Technology LLC will meet with the Riverhead Town board of directors on Thursday to discuss their financial ability to complete their plans for the Calverton property.
“This is a very important property for the Town of Riverhead, and I think we need to get them in and talk to them and find out if they have the financial means to go ahead with this project,” said the city councilor Catherine Kent.
Kent expressed concern over local media reports that an Edmonton, Canada-based subsidiary of Triple Five Group, one of the venture capitalists’ partners with aviation company Luminati Aerospace LLC, has lost more than $ 60 million in 2020 on its American Dream mega-mall project in New Jersey. .
According to these reports, based on financial documents released in May by Meadowlands Joint Venture LLC, a subsidiary of Triple Five Group, reported $ 41,587,272 in revenue from operations related to the partially open shopping center in East Rutherford, New Jersey, but also reported $ 105,933,945 in project expenses. The two combined for a net loss of $ 64,346,673.
Kent told Newsday the reports raised concerns about the venture capital group’s ability to continue with plans to convert the EPCAL property into space to expand Luminati’s aerospace operations.
Christopher Kent, attorney at Uniondale law firm Farrell Fritz PC, which represents Calverton Aviation and Technology, told Newsday that Triple Five Group is made up of hundreds of these subsidiaries. The financial difficulties of a subsidiary would not affect the venture capital group’s plans for EPCAL, said Kent, the city councilor’s ex-husband.
“Their interest in Calverton Aviation and Technology is distinct from any other entity they own and control,” said Christopher Kent. “They are completely separate and independent entities, financially and organizationally.”
He said officials will provide city council with proof of funds showing that they have the balance of the purchase price of the land and all related costs due at the closing.
Riverhead supervisor Yvette Aguiar said city officials will also take a final look at the venture capital group’s financial documents when the city gets closer to finalizing the sale of the land.
“Financial data is a very fluid document, and what can be presented to the city on June 10 may change if and when we close,” Aguiar said.