Cancer, COVID lab seeks IDA tax breaks to expand

A medical laboratory in Plainview that helps physicians from across the country to diagnose cancer and COVID-19 wants to open a second facility, executives said.

Acupath Laboratories Inc. would more than double its space with the purchase of 1 Ames Court, also in Plainview. The 30,550-square-foot building is down the road from the company’s headquarters and lab at 28 South Terminal Dr.

“We are at the point where we have expanded and run out of room” in the Terminal Drive building, where Acupath occupies 24,000 square feet, said chief financial officer Zaleena Neice.

The company has requested tax breaks from the Nassau County Industrial Development Agency to support the $8.5 million expansion project. It is seeking 10 years of property-tax breaks, a sales-tax exemption of up to $86,250 on the purchase of construction materials and equipment, and up to $30,000 off the mortgage-recording tax.

The IDA board voted unanimously last month to negotiate a tax-aid package with the company.

Neice said previous IDA incentives, awarded in 2005, helped Acupath to move from a small office in New Hyde Park to the Terminal Drive building. The company was started in the 1990s.

The earlier aid package ended in 2016, with the property-tax savings totaling $203,761 in the final six years, according to state records. In return, Acupath exceeded its commitment to add 16 jobs, instead adding 40. The company had 30 employees when it first sought IDA assistance, the records show.

With the proposed expansion, Acupath plans to increase its payroll from the current 117 employees to 187 over three years. 

Among the new hires, 36 will be lab technologists, with salaries between $50,000 and $80,000 per year; 13 lab assistants, between $38,000 and $40,000, and 12 administrative positions, between $60,000 and $80,000, according to the application for IDA aid.

“This is critical work that we do, and we cannot continue to do it in Nassau County without the benefits from the IDA,” said Brian Kunkel, Acupath’s chief operating officer, adding that it could open a lab outside of New York State.

He said Acupath performed tests on tissue samples from about 180,000 people last year that helped doctors to identify cancers of the breast, bladder, prostate and throat, among others.

The company also has processed about 1.2 million COVID tests since June 2020, when its test was approved by federal regulators, he said.

“There are so many more things that we can do,” Kunkel said last month, noting Acupath began COVID testing after state lockdowns reduced the number of biopsies because physicians couldn’t see patients. “We want to do more, but we need space to do it in.”

IDA chairman Richard Kessel, citing the agency’s previous support for another lab business, said the industry offers an opportunity to create good-paying jobs.

“This helps us to promote Nassau County as one of the centers for research and testing for disease," he said. "Right now, that’s a very important thing in this country with COVID-19 and the ravages of cancer."

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.