Suffolk County Industrial Development Agency fires CEO Kelly Murphy

The Suffolk County Industrial Development Agency on Thursday fired top staffer Kelly Murphy without explanation as the county and New York State strive to keep employers and attract new ones.

Murphy has been CEO and executive director since June 2024 and was acting executive director for one year, starting in June 2023. She has worked for the IDA for more than 11 years.

Murphy's removal follows disagreements among IDA staffers who have been the subject of almost-monthly executive sessions during IDA board meetings. Last year, an unnamed employee filed a complaint against another, according to minutes of a special board meeting on Dec. 1.

The IDA is Suffolk’s primary economic development agency, providing tax breaks to manufacturers, housing developments and technology companies. 

Still, members of the Suffolk County Legislature have said the IDA should be more discerning about whom it grants tax incentives to, particularly multifamily housing developments that increase school enrollments even as the developers save on school property taxes. Earlier this year, the legislature replaced three longtime IDA board members. 

On Thursday, the IDA board voted unanimously to fire Murphy after meeting privately for about one hour. Murphy didn’t attend the meeting and declined to comment afterward.

In a statement to Newsday after the meeting, the board said, "We thank Kelly Murphy for her service and contributions to the IDA and wish her well in the future."

At the meeting, the agency’s attorney, William Wexler, announced that Murphy would serve as an acting strategic adviser on a month-to-month basis with her current salary. She was paid $176,546 in 2024, based on state records.

Peter G. Ganley III, the IDA’s administrative director, was named acting CEO and executive director. He will be paid $150,000 per year, the attorney said.

"I'm committed to building on the IDA's successes and ensuring we continue to provide businesses with the tools and support they need to grow and succeed here in Suffolk County," Ganley told Newsday in a statement.

The IDA CEO and executive director is responsible for the day-to-day running of the agency, which includes vetting applicants seeking tax breaks, compiling regulatory reports and working with other local IDAs and Empire State Development, the state's primary business aid agency. 

Among Long Island's eight IDAs, Suffolk has the best record in terms of granting the lowest amount of tax aid per job created: $1,257 per new job in 2024, according to an annual audit by the state comptroller’s office.

In selecting Ganley, the board passed over Joseph Rastello, the deputy executive director for the past two years. 

A spokesman for County Executive Edward P. Romaine didn't respond to requests for comment on Thursday.

Kyle Strober, executive director of the developers' group Association for a Better Long Island, praised Murphy's work to attract and retain businesses in the county and said Ganley "will bring new energy, insight and strategic vision required to sustain economic development" in the region.

Legislators' criticism of tax breaks for housing projects and removal of three IDA board members is worrisome, said Lawrence Levy, executive dean of Hofstra University’s National Center for Suburban Studies.

"If the changes at the Suffolk IDA are ideologically driven over one party or political organization opposing something like housing, or wanting to put their own partisans in power, that would be something that people should be concerned about," he said.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.