The Suffolk County Industrial Development Agency is offering an eight-year tax break to keep a Huntington tissue manufacturer from moving out of state, officials said.
Select Products Holdings LLC would save $125,300, or 20% off the property taxes on its office, factory and warehouse at 1 Arnold Dr. over eight years.
In return, the manufacturer of toilet paper, napkins, facial tissue and paper towels would install $250,000 in equipment and add six people to its workforce of 71. They earn, on average, $55,670 per year, records show.
Select was started in Huntington in 2012 by then-CEO Simon Roozrokh and four partners: Justin Adelipour, Zoheir Aghravi, Hamid Darouvar and Siamak Khezri. At the time, the IDA granted a $221,000 property-tax reduction over eight years in return for a $5 million investment and the creation of 43 jobs.
That commitment has been surpassed, IDA executive director Anthony J. Catapano said last month. “They were a startup and have become a success story.”
Besides its rented 65,000-square-foot facility in Huntington, Select expanded to Vandling, Pennsylvania, in 2016 with incentives from that state. Records show the company now has 41 employees in Pennsylvania.
Select has considered moving its local operation to North Carolina and Virginia, both of which offer lower operating costs. “I think it’s important to try to keep this company here,” Catapano told July’s IDA board meeting.
The Select website lists the Long Island and Pennsylvania factories “and a soon to be finalized southern location that will allow us to focus on the equally important private-label market.”
Select CEO Nick Galante said the company’s owners would like to keep the Long Island facility “because our market [for products] is the New York area and Pennsylvania” but “rising costs are making it increasingly more difficult.”
The Arnold Drive building has a new owner “who wants to substantially increase the rent and our taxes have been going up at an alarming rate,” Galante told the IDA board.
Select's products are sold under the Select, Spic and Span, and Halo brands as well as retailers’ store brands.
“We make the products that you can’t find in your local supermarket” due to coronavirus shortages, Galante said. “We’re working 24/6 to make as much product as we can to meet the demand.”
IDA vice chairman Kevin Harvey praised Select for adhering to the agency’s Long Island First policy, which encourages recipients of tax breaks to use local suppliers and vendors wherever possible.
Select spends almost $20 million locally per year; buying paper rolls from Convermat Corp. in Great Neck and Tissue Plus in New Hyde Park, packaging from Josh Packaging Inc. in Hauppauge and printing plates from DC Graphics Inc. in Farmingdale, among others.