Plainview-based developer Rechler Equity Partners has been approved for tax benefits by the Suffolk County Industrial Development Agency for a planned $9.6 million addition to a business park at Francis S. Gabreski Airport in Westhampton Beach.
Rechler Equity, which broke ground on the park’s first building in 2014, plans to begin work on the second building later this year. Named the Hampton Business District, the park eventually will feature nine buildings, with a mix of industrial, office and hotel space. The airport and surrounding 50 acres are owned by the county.
“This is a real partnership between us and the county,” said Mitchell Rechler, managing partner at Rechler Equity. “We’re both working together to help achieve success for the project.”
The developer plans to build a 67,235-square-foot, single-story property with accommodations for multiple tenants, suitable for office, warehousing, and research and development operations. Unlike the first building, at 220 Roger’s Way — which is 85 percent leased — the new building is being built without tenants lined up.
Rechler Equity, in a letter to the IDA, said that building the second building on speculation will “establish a functional and visual image of the Hampton Business District” and will “encourage owners and tenants to establish their businesses” at the park.
“We saw the success and demand that exists with 220 Roger’s; that’s what gave us the confidence to move on,” Rechler said.
According to IDA documents, the developer plans to begin construction on the new building, at 200 Roger’s Way, in July or August, and expects to complete it in late 2017.
The IDA approved Rechler Equity for a sales tax exemption of up to $476,100 on the purchase of building and outfitting materials, a mortgage recording tax exemption of $91,350, and a 15-year property tax abatement with a 100 percent reduction in existing property taxes for the first year, with the reduction decreasing by 6.5 percent annually for the remaining years.
Anthony J. Catapano, executive director of the IDA, said the county has been looking to have some type of business park at the site for decades. “To have something occurring now is quite remarkable.”
Southampton-based cookie maker Tate’s Bake Shop, AC Lighting & Electrical Supplies of Smithtown, and national HVAC equipment distributor Carrier Enterprise are all tenants of the park’s first building.
For its work on 220 Roger’s Way, Rechler Equity in April was named developer of the year by the Association for a Better Long Island, a developer lobbying group.