A real estate developer has asked the Nassau County Industrial Development Agency for at least $118,500 in tax breaks to help build a three-floor mixed-use building in New Cassel.
Manhattan-based Euroamerican Funding Group has proposed a 12,000-square-foot building with a medical clinic and credit union on the first floor and 10 one-bedroom apartments on the top two floors. The rental apartments would be for senior residents — age 62 or older — and six apartments would be developed as affordable units. Representatives for Euroamerican earlier this month told IDA board members the planned site is in a part of New Cassel that desperately needs revitalization.
“Right now, it’s blighted and empty,” said Daniel Deegan of Uniondale-based law firm Forchelli Deegan Terrana, which is representing Euroamerican. “It was previously used as a motorcycle repair shop," which would be torn down to make way for the new building.
The proposed building would sit on 16,630 square feet of land currently owned by the North Hempstead Community Development Agency. Euroamerican plans to buy the land from the agency for $450,000, if the IDA approves the tax exemptions. Once built, the structure would take up three existing lots: 985 Prospect Ave., 987 Prospect Ave., and 215 Brooklyn Ave.
In May, the North Hempstead Town Council added the project to its Urban Renewal Plan, a move that reduced Euroamerican's cost of building and highway permit fees by 35 percent. The town's zoning board granted Euroamerican some parking variances in April.
“We can’t build this building without the IDA’s assistance,” Deegan said of the $3.21 million project, adding that offering affordable units makes it difficult to pay the full property tax bill.
IDA documents show that Euroamerican is asking for $103,500 in sales tax exemptions on construction materials and $15,000 in mortgage tax benefits. Euroamerican is also asking for a 20-year payment in lieu of taxes, or PILOT, but no amount has been attached to it.
IDA board chairman Richard Kessel said IDA officials are negotiating with Euroamerican about how much the developer would pay for a multiple-year PILOT and how long the PILOT itself would last.
Kessel said the project is under “serious consideration.”
“I get a very good, positive vibe from all of the board members,” he said.
The IDA is to hold a public hearing about the application but has not set a date. Board members may vote on Euroamerican’s application in early January, Kessel said.