Islip OKs tax deal for B/E Aerospace
The Islip Town Board, meeting as the Industrial Development Agency board, has approved a tax inducement for a company that manufactures lighting systems for commercial and business aircraft in hopes that the firm would keep 154 jobs in the town.
B/E Aerospace Inc., which currently operates out of a 30,000-square-foot warehouse in Holbrook, was considering a move to Seattle, where the company's biggest customer, Boeing, is headquartered, said IDA director William Mannix.
The town board approved the tax inducement Tuesday.
"These are well-paying jobs -- $60,000-plus," Mannix said. "Lots of skilled labor, and some of these people are electrical engineers."
Mannix said the company was looking to expand into a bigger facility and approached the town saying that it wanted to stay but was feeling pressure to move its operations to Seattle.
Now equipped with a 10-year payment-in-lieu-of-taxes agreement from the town, the company is finalizing a move to a 60,000-square-foot facility in Bohemia.
Mannix said the firm plans to add 30 more jobs in the first two years at the new warehouse, but needs to negotiate lease agreements with the property owner.
Mannix said he did not know how much money in town property taxes the company will save with the PILOT agreement because negotiations with the landlord are ongoing.
He said the company would be billed at full taxation by the 10th year of the agreement.
The Bohemia facility that B/E Aerospace would move into has been home to DentSply GAC, a manufacturer of orthodontic equipment that took a major hit when its longtime supplier in Japan was devastated by the March 2011 earthquake and tsunami there, Mannix said.