IDA OKs sales-tax exemption for Lake Success building renovations
An office building in Lake Success that has been occupied largely by Chase Bank will undergo $16 million in renovations to attract new tenants, officials said.
Nassau County last week backed the building improvements with tax breaks over 20 years.
The 314,000-square-foot building at 1985 Marcus Ave. will soon be 57 percent vacant as the bank and other tenants leave, according to the landlord, CLK Properties.
Chase has reduced its Long Island operations and plans to keep open only a cash-processing department in the basement of the Lake Success building, said Daniel P. Deegan, an attorney for CLK.
He told the Nassau County Industrial Development Agency that the building, constructed in 1983, must be modernized to find tenants to fill the vacant offices.
“The building was built for Chase Bank. …The bank has downsized and has abandoned about two-thirds of the building,” Deegan said. “It used to be a major employment center.
“The building needs a major renovation and repositioning, and a lot of investment put into it so that it can attract the types of tenants that it deserves,” he added.
CLK purchased the building for $50 million in 2008 and now needs tax breaks to rehabilitate the property, Deegan said.
The IDA board voted unanimously, with one abstention, to grant CLK a sales-tax exemption of up to $822,184 on the purchase of construction materials, fixtures and equipment. The landlord’s property taxes, which now total $1.6 million per year, will increase 2 percent in each of the next 20 years under the agreement with the IDA.
In return for the tax breaks, CLK pledged that the number of people employed in the building will not fall below the current 500 workers. Deegan said 1,000 people could eventually work there.
“We are anticipating that ... [the number of workers in the building is] going to go down and then come back up and hopefully well exceed” 500 workers, he said. “The building could easily handle 1,000 employees or more.”
The planned renovations include a new entrance, lobby, picnic area and outdoor terrace. The work will take about three years to complete, according to IDA records obtained through the Freedom of Information Act.
CLK, with headquarters in Woodbury, was founded in 1980 by Maynard and Craig Koenigsberg. The company’s portfolio includes about 100 properties in 31 cities and a workforce of more than 400 people. CLK owns a number of buildings along Route 110.