Revoke $2.3 million tax break for Amazon warehouse in Suffolk, lawmakers say

Three Suffolk County lawmakers, together with a local business leader, on Tuesday called for the cancellation of $2.3 million in tax breaks awarded to the developer of a Westhampton Beach warehouse to be used by Amazon.

Republican legislators Robert Trotta, Anthony A. Piccirillo and Steven J. Flotteron said the county’s Industrial Development Agency shouldn’t have granted the tax aid to Rechler Equity Partners because Amazon would use the warehouse near Gabreski Airport regardless. They also said the retailer, among the world’s wealthiest businesses, doesn't need help.

The IDA board unanimously approved the tax deal twice at its October and November meetings. At the time, agency officials said similar incentives have gone to Rechler Equity’s other three buildings in the industrial park under the terms of a 2009 agreement between the developer and Suffolk. That pact was negotiated by then-County Executive Steve Levy's administration.

The $36 million warehouse will employ between 50 and 100 full-time employees, excluding drivers, to make "last-mile" deliveries to Amazon customers on the East End.

Trotta said on Tuesday that Rechler Equity misled the IDA by stating in its aid application that Amazon would use an out-of-state warehouse if tax breaks weren’t given.

"They’re saying [Amazon] will move out of New York," said Trotta (R- Fort Salonga) at a news conference outside the county legislative building in Hauppauge. "How can they move? Are they going to ship packages to the East End using boats from Connecticut?" he said.

Separately, in an application for help from the Nassau IDA for a proposed warehouse in Syosset, Amazon said it could serve Long Islanders from off-Island sites.

Rechler Equity co-managing partner Gregg Rechler said on Tuesday the industrial park, Hampton Business District, "generates both tax revenue and employment opportunities" — just as county leaders envisioned in 2009 when the full legislature approved the park. "All parties were enthusiastic about the agreement because of the boundless opportunities developing this unused property presented," he said.

Suffolk IDA executive director Anthony J. Catapano said every IDA tax deal "undergoes a thorough review and independent vote by the board of directors to ensure the agreement provides the best possible outcome for Suffolk County's economy and its residents."

An Amazon spokeswoman didn't respond to a request for comment on Tuesday.

At the news conference, Piccirillo (R-Holtsville) said the IDA should provide tax breaks to small businesses struggling to survive the coronavirus, not wealthy developers and retailers. "Amazon doesn’t need tax breaks, but small businesses do," he said.

The president of the Smithtown Chamber of Commerce, Christopher McNamara, agreed, adding Amazon "shouldn’t have tax breaks for something [the last-mile warehouse] that they need. Our downtowns are where help is needed."

Amazon's other last-mile warehouse in Suffolk doesn't receive tax aid.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.