Riverhead reviews zoning rewrite to let Tanger add more tenants

A 1992 zoning code written to build Tanger Outlets is now under review because Riverhead says the rules no longer fit the shopping center’s business model or the town’s economic goals.

Senior planner Greg Bergman told the Town Board on April 10 that the current code is too narrow for today’s retail environment and makes it harder for Tanger to attract tenants. Tanger vice president of development Jordan Horne said the Riverhead center has struggled to adapt in ways its Deer Park location has managed under looser zoning.

The stakes go beyond storefront variety. Tanger opened in Riverhead in 1994, and the company said the center fell from its top-performing tier into a lower tier by 2024 and 2025. In 2025, Riverhead generated $440 in sales per square foot, below Tanger’s companywide average of $474. For a property that anchors a major retail corridor and contributes to the town’s tax base, that gap has become a warning sign about whether the site can keep pace without a different set of rules.

Tanger’s broader strategy has shifted as well. The company has been adding more than outlet stores, including full-price retail, food, beverage and entertainment uses that can keep visitors on site longer and draw a broader customer base. Riverhead planners are now considering a code closer to Babylon’s less restrictive model so Tanger can respond more quickly to market demand.

That shift would carry practical consequences for the surrounding area. A more flexible zoning rewrite could open the door to tenants that do not fit the old outlet-only framework, which could help reduce vacancies and strengthen sales. It could also change traffic patterns around the center as a larger mix of uses brings different arrival times, longer visits and more year-round activity.

The discussion also raises a broader question Riverhead has not settled: whether Tanger should remain primarily an outlet center or evolve into a wider commercial hub. Supporters of change see a chance to protect jobs, preserve tax revenue and keep the property competitive. Skeptics are likely to weigh how far the town should go in reshaping one of its best-known retail destinations, especially if the rewrite changes the character of the outlet corridor that has defined the site for more than three decades.