Keystone Electronics Corp., a maker of electronic components, will complete its relocation from Queens to New Hyde Park without the Nassau County tax benefits it was awarded.
In June, the company was approved for tax benefits by the Nassau County Industrial Development Agency to help it relocate. The company was offered a sales tax exemption of up to $41,562; a reduction of $30,240 off the mortgage recording tax; and savings on property taxes over 10 years, with a five-year extension option. In return, the company promised to grow employment at the new facility.
The company soon after declined the tax breaks.
IDA officials “were very helpful in making us aware of the proper people to speak to in Nassau County,” said Troy David, president of Keystone Electronics. “Ultimately, the IDA program just wasn’t a good fit for us and our business model.”
Keystone, which has about 130 employees, has purchased a 21,800-square-foot warehouse at 2040 Jericho Tpke. and has moved some operations there. The company plans to begin renovating a 48,750-square-foot leased building at 55 Denton Ave. in March, and move its remaining city operations there later this year.
David said the decision to decline the benefits last year was due in part to “manufacturing workforce uncertainties that might lie ahead,” but added that Long Island still provided the necessary space, and could be accessed by his metropolitan area employees.
Industrial development agencies grant expanding companies benefits in exchange for commitments to grow or maintain employment.
The number of manufacturing jobs on Long Island declined to 71,000 in November from 74,000 five years earlier.