Proposed LI Distribution Center Gets Preliminary OK For Tax Breaks

Garden City NY

25 April, 2022

2:57 PM

Description

GARDEN CITY, NY — The Town of Hempstead's Industrial Development Agency gave preliminary approval for incentives for global real estate company to build a distribution center in Garden City. Brookfield Asset Management is planning to build a 102,600-square-foot distribution center at Mitchel Field, near Nassau Community College. On April 21, the IDA approved a 10-year Payment In Lieut Of Taxes (PILOT) plan, which would phase in taxes on the property. The taxes on the property would rise from $598,000 now to $740,000 at the end of the PILOT. Brookfield paid $13.2 million in July 2021 for the 6.5-acre site at 107 Charles Lindbergh Blvd., and a 89,464-square-foot office building, which has since been demolished. The cost of the entire project is $33.79 million. "The IDA's preliminary approval of this project comes with the hope for new jobs and economic benefits to the town and the local community," said IDA CEO Frederick Parola. "Moreover, the project will replace a vacant, unproductive, blighted property with one that will contribute to our local economy." While Brookfield does not yet have a tenant for the proposed distribution center, company officials told the IDA that finding a tenant likely would occur as construction nears completion next year. Potential tenants include pharmaceutical companies and e-commerce distributors. The project will provide additional revenues to taxing jurisdictions in the region and create at least 50 new permanent jobs and 130 construction jobs, the company said. The benefits package requires addition review by the IDA staff, a public hearing and final approval by the IDA board. The company said the project would not be feasible without assistance from the IDA due to high labor and construction costs and unpredictable real estate taxes.