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$51 million FedEx Ground warehouse in Bethpage wins tax breaks

The 244,500-square-foot warehouse will be located at the site of the former Northrop Grumman aerospace manufacturing complex.

A person rides a bicycle past a FedEx

A person rides a bicycle past a FedEx Corp. delivery truck in Manhattan's Financial District on June 18. Photo Credit: Bloomberg / Christopher Lee

The developer of a proposed FedEx Ground warehouse in Bethpage has received millions of dollars in tax breaks from Nassau County.

The county’s Industrial Development Agency last week awarded Steel Equities a sales-tax exemption of up to $3.1 million on the purchase of construction materials, equipment and supplies for the planned 244,500-square-foot warehouse. It will be at the site of the former Northrop Grumman aerospace manufacturing complex.

The $51 million warehouse will be included in a 2011 IDA deal that reduces property taxes on 84 acres of the Grumman site for 40 years because the land was environmentally contaminated. Steel Equities’ property taxes have gradually risen over time as rental income from buildings on the property has increased.

In addition, the developer received a reduction in the mortgage recording tax of up to $288,257.

FedEx plans to move into the new warehouse on Aerospace Boulevard before Christmas 2019 and will employ 190 people, said Daniel P. Deegan, Equities' real estate attorney. The warehouse will be on 6 acres that the county is selling to Steel Equities for $3 million, according to a purchase agreement.

FedEx currently rents a smaller warehouse nearby from the developer, Deegan said.

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