Parabit Systems seeks 10-year tax break extension to stay on Long Island

A Bellmore-based manufacturing company that had threatened to leave Long Island is planning to stay and launch a $3 million expansion of its Roosevelt factory, Hempstead Town Industrial Development Agency officials said last week.

Parabit Systems Inc., which builds ATM kiosks for more than two dozen major banks, is seeking a 10-year extension of tax breaks from the IDA in exchange for agreeing to stay on Long Island, IDA officials said in a news release.

The IDA on Jan. 31 gave preliminary approval to the economic benefits package. Specific terms of the tax breaks are being developed by IDA staff, according to an application filed by Parabit officials. Parabit, which currently employs the equivalent of 57 full-time employees, plans to add 13 jobs at the Roosevelt plant with an average salary of $95,000, IDA officials said.

"We’re thankful that Parabit has chosen to expand within the town and create additional good paying jobs," Hempstead Town IDA chief executive Fred Parola said in a statement.

A person at Parabit who answered the phone Friday said chief executive Robert Leiponis was not available to comment.

The company's application says Parabit had been planning a move to "the southeastern U.S." for lower taxes and cheaper labor and property costs.

Instead, the company is planning to expand the Debevoise Avenue factory by about 37%, from 21,005 square feet to 28,825 square feet, IDA documents said. The expansion would take place on vacant land purchased for $130,000 from Hempstead Town on July 17, 2020.

The expansion would be "fully dedicated to Parabit's research and development department's operations," the company's IDA application says. Construction is expected to start later this year and take up to 18 months.

Parabit is seeking to extend its current tax break deal with Hempstead, which expires in two years, by an additional 10 years. Terms of the current deal, including payments in lieu of taxes, were not immediately available.

The tax breaks, if approved, also would help the company purchase a laser cutting device, IDA officials said. The purpose of the device was not identified.

Parabit builds kiosks and ATM access control systems, courtesy phones, charging stations, door locks and other products for banks, hospitals, hotels, airports and other industries, the company website says. The company's clients include 25 major banks, national retail chains, NASA, the Port Authority of New York and New Jersey, and LaGuardia and John F. Kennedy airports, the website and IDA officials said.

By Carl MacGowan

carl.macgowan@newsday.comCarlMacGowan

Carl MacGowan is a Long Island native who covers Brookhaven Town after having previously covered Smithtown, Suffolk County courts and numerous spot news and feature stories over his 20-plus year career at Newsday.