International Shoppes of Valley Stream will remain in the village after working out a deal with the Town of Hempstead's Industrial Development Agency, officials announced.
"They were considering leaving," Fred Parola, the executive director of the IDA, said of the company that operates airport retail and duty free facilities. The decision to stay is "definitely a positive economic situation" for Hempstead, he said.
Representatives of International Shoppes did not respond to requests for comment.
Parola said the company will refurbish its offices at 540 Rockaway Ave. and purchase neighboring properties to expand.
The deal includes the company making a payment in lieu of taxes instead of paying property taxes for the next 15 years. The amount will fluctuate over the years.
Property taxes would be frozen at the current level for three years, beginning in 2015, and would be held to about 2 percent annually after that, Parola said.
The agreement announced last week is "expected to save the company about $150,000 on the existing facility over the 15 years, and about $1.2 million on the new property," Parola said.
The company also will not have to pay sales tax on part of its purchases, primarily for new construction materials used in refurbishing and expanding its offices. Parola said that could last as long as 18 months.
The sales tax exemption is expected to total about $475,000 on an anticipated $5.3 million in spending, he said.
The two projects are to cost about $17 million, he said, and employ as many as 15 construction workers.International Shoppes has 110 employees and is expected to hire 40 more, Parola said.