$24M hotel project receives initial approval for $1M in tax breaks
Rendering of proposed Marriott Residence Inn in Jericho across from the Milleridge Inn.
A $24.3 million hotel project in Jericho received preliminary approval for more than $1 million in tax breaks from the Nassau County Industrial Development Agency in early April. Developer Twenty-Six Sunset LLC plans to build a 93-room Marriot Residence Inn at the Jericho Commons shopping center.
“This is a much-needed facility for the area,” IDA chairman Richard Kessel said in a news release. “It will provide synergy with the Milleridge Inn restaurant and catering complex and will attract visitors heading to surrounding colleges.”
The developer, which is partially owned by John A. Danzi, a principal at Islandia-based Long Island Hotels LLC., plans to lease the property from landlord Kimco Realty Corp. The IDA benefits include sales tax breaks valued at $920,000, mortgage recording tax breaks valued at $120,000 and a payment in lieu of taxes agreement, according to the application.
The proposed PILOT would freeze the property taxes on the hotel site for five years and then phase in the new value at a rate of 1.81% annually for 15 years, according to an online presentation made to the IDA in early April by William Cornachio, partner at the Uniondale office of Rivkin Radler LLP representing the developer. Those taxes were $90,641 in 2017 when the developer’s application was originally filed. Cornachio told the IDA, according to a video of his presentation, that the developer wanted to reserve the right to grieve the property tax assessment due to the recent countywide reassessment of property taxes.
The construction costs of the project have increased to $19.2 million from $16.7 million due to agreements to use only union labor during construction, according to Cornachio’s presentation. Construction union workers packed Oyster Bay Town Hall last year and early this year to support the project during town hearings on variances, site plan approval and a special use permit. The project faced intense opposition from the community.
Kessel said during the presentation that the community will have an opportunity to be heard at a public hearing before a vote on final approval for IDA benefits is held and suggested it could be held at the Milleridge Inn. A date for the hearing has not been set.
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