TODAY'S PAPER
41° Good Evening
41° Good Evening
Business

Suffolk IDA OKs some tax exemptions for Smithtown senior complex

The Siena Village Section-8 senior apartment complex in

The Siena Village Section-8 senior apartment complex in Smithtown is seen on Tuesday, Aug. 25, 2015. The complex is made up of 20 buildings with 299 apartment units. Credit: Newsday / John Paraskevas

A California-based developer that plans to purchase and renovate a low-income senior apartment complex in Smithtown as part of a $90 million project received preliminary approval Thursday of up to $606,225 in sales and mortgage recording tax exemptions from the Suffolk County Industrial Development Agency.

But the IDA board also unanimously voted for a 30-year PILOT, or payment in lieu of taxes, structure that would result in Siena Investors LLC -- an affiliate of Sherman Oaks-based GHC Housing Partners -- paying $373,750 the first year. That is more than the site's current property tax of about $340,000.

Siena Village, a 39.5-acre complex of 20 buildings and 299 apartments at 2000 Bishops Rd., is not on the tax roll because it is owned by Catholic Health Services of Long Island, a not-for-profit company.

The board approved a PILOT property tax structure that will increase 3 percent each year of the 30-year term.

"That differential between what the developer offered to pay and what the IDA is recommending is $5.4 million additional tax contributions over the 30 years," said Kevin Gremse, director of the National Development Council, a national nonprofit community development organization that advised the IDA on the project.

Grant Hendricks, vice chair of the IDA board, said the plan sounded like a "win-win-win" by "helping preserve quality, affordable senior housing . . . [and] significantly increasing the amount of taxes that this property will pay on the town, county and state level."

R.J. Miller, GHC's senior vice president of acquisitions and development, said in a statement Thursday that the company was "pleased to have a compromised structure that will keep this preservation project on track, while also increasing the economic benefits to the local community."

Comments

We're revamping our Comments section. Learn more and share your input.

More news