Southold, NY The Suffolk County Industrial Development Agency (SCIDA) has preliminarily approved a transaction to assist Enclave Southold, LLC to construct a full-service hotel located at 56655 Main St. With the SCIDA’s support, Enclave will renovate a historic 3,764 s/f home and begin the new construction of a 72,979 s/f hotel on the property. The $43 million project creates a hotel that will include two restaurants, a spa, cottages and more.
“This project checks all of the boxes; it will help satisfy a growing need for quality hospitality options on the North Fork, significantly increase tax revenue and create jobs all while keeping up with the aesthetic of the surrounding area,” said Kelly Murphy, acting executive director of the Suffolk County IDA. “We’re proud to provide our support to this project that will provide real economic growth for the area as well as local businesses while also bolstering Long Island’s tourism sector.”
The Enclaves is designed to be a full-service hotel on 6.7 acres. The 72,000 s/f hotel will include 40 guest rooms, four cottages with private housing space and hot tubs, indoor and outdoor pools, a spa with four treatment rooms, exercise rooms, two restaurants and 4,170 s/f of event and meeting space. The historic home on the property will be transformed into an on-site 74-seat restaurant that will be operated in conjunction with the hotel. A multi-million dollar site work package, including a sewage treatment plant, will be installed as required by the Suffolk County Dept. of Health Services and the town.
In 2015, the historic property, which had previously operated as The Hedges Bed & Breakfast, was purchased by principal of Enclave Southold, Jonathan Tibett, for the purpose of realizing his larger dream that Southold would one day be home to a full-service hotel. With Long Island’s options of wineries, farms, fisheries, beaches and other tourist attractions, there remains a need for additional high-quality accommodations for travelers and visitors to Long Island’s East End. According to the Tourism Study and Demand Analysis prepared by HVS Consulting & Valuation, it is expected that over 90% of the hotel’s guests will come from beyond Nassau and Suffolk Counties.
“We are incredibly thankful to have the support of the Suffolk County IDA on the construction of the Enclaves Hotel and Restaurants project,” said Edward Glackin of Enclave Southold, LLC.
“When the property was initially purchased, it was home to the Hedges Bed & Breakfast with the dreams of one day being home to a luxury hotel for visitors to Long Island’s North Fork to enjoy. Due to the support of the Suffolk IDA, that goal of creating a world-class hotel and additional lodging for those visiting our region, will now be possible.”
The site of the proposed project is part of Long Island’s North Fork. Long Island’s North Fork is a 30-mile peninsula which extends from Riverhead to Orient Point. With a large sector of Long Island tourism focused in this particular radius, there has remained a high demand for local lodging for both leisure and business tourism, despite limited supply for lodging. The Enclaves will help to satisfy a portion of the demand for expansion of accommodation options for visitors to this region.
The 51 new full-time employees to be created over the first two years of this transaction will have an overall annual payroll of $2.3 million. The renovation, building, finishing, and installation of fixtures and other equipment will be performed by almost exclusively Long Island based businesses and suppliers.
This project will also increase tax revenue from the site three-fold in the first year alone, bringing in more than $1.27 million in additional tax revenue over the course of 15 years. With increased tax revenue and by supporting and using local vendors on Long Island, the project has been calculated to provide an overall public benefit of more than $8.5 million.
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