A Hauppauge-based drug company is proposing to open a factory in Central Islip that would create up to 400 jobs over the next five years in exchange for nearly $4 million in tax breaks from Islip Town.

The deal involving InvaGen Pharmaceuticals Inc., which makes mostly generic prescription medicines, hinges on approval by the federal Food and Drug Administration, Islip economic development director Bill Mannix said.

InvaGen would open a new facility on a 16-acre property at 550 S. Research Way, which currently houses Creative Bath Products Inc.

Executives from both companies declined to comment because a deal is not complete.

The town board, sitting as the Islip Industrial Development Agency at a special meeting Friday, adopted a resolution allowing the agency to move ahead on the deal, in which InvaGen would purchase the site and refit an existing 248,000-square-foot facility.

InvaGen would receive $3.8 million in tax exemptions, mostly property taxes, over 12 years, Mannix said.

Headquartered at 7 Oser Ave. in Hauppauge, the company already has three facilities there with 350 employees, officials said.

Last year, it renewed a lease on a 25,780-square-foot property at 600 Old Willets Path, records show, and it occupies a third close by, at 85 Engineers Rd.

InvaGen manufactures a range of generics, including cardiovascular, anti-inflammatory and antidepressant drugs.

In its application for Industrial Development Agency assistance, the company predicted that after five years the Central Islip facility would have 350 to 400 new employees with an average salary of $50,000, and that 150 of those would be hired within the first two years.

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InvaGen would inherit a 10-year tax abatement package created for Creative Bath in 2007, Mannix said, and is seeking a two-year extension based on the time projected until an FDA decision.

The town's "cost benefit analysis shows a 20-to-1 return in PILOT [payment-in-lieu-of-taxes] payments, corporate taxes and indirect benefits" by the end of the 12 years, Mannix said. "This brings job opportunities to a local neighborhood.

The Islip IDA also adopted resolutions approving progress on two other proposals:

American Tire Distributors, the largest distributor of vehicle tires in the country, plans to lease 131,000 square feet from Heartland industrial complex in Brentwood, employing 30 people at an average salary of $50,000. The property, at 121 Wilshire Blvd., is under construction. Approval would grant $841,787 in tax exemptions over 10 years with an expectation of $19,262,250 in state and local economic benefits, Mannix said, a benefit-to-cost ratio of 22.88 to 1.

Trojan Powder Coating Co., which provides coatings for other manufacturers' products, wants to expand its facility at Union Boulevard in Bay Shore, creating 26 new jobs at an average salary of $29,000. The town calculates a 40-to-1 return once the proposed 10-year $335,000 tax abatement package ends.