A proposal to build a $7.9 million senior housing project would be the latest addition to the Village of Farmingdale’s building boom.
Ronkonkoma-based Carlyle Building LLC wants to build the 31⁄2-story apartment building using tax breaks from the Nassau County Industrial Development Agency that the developer said are needed to make the project feasible but that have raised concerns with some Farmingdale residents.
Proponents, however, see the project as the right fit for Farmingdale.
“It’s continuing in the efforts of the village master plan for transit-oriented development in its downtown which has resulted in a revival for Farmingdale,” said Daniel Deegan, an attorney at Forchelli, Curto, Deegan, Schwartz, Mineo & Terrana who represents the developer.
Upon completion, the property at 776-780 Fulton St. would have estimated annual property taxes of $150,000, according to the developer’s IDA application. Currently the property taxes are $19,142.75 on the vacant site, according to the application.
The developer is seeking a payment in lieu of taxes, or PILOT, plan during which payments totaling $1.4 million would be paid over 20 years, a little less than half what the estimated taxes would cost during that time if they remained constant. They are also seeking mortgage and sales tax breaks.
Other multifamily rental projects built or under construction in the village in recent years have received IDA tax breaks, including the 42-unit Cornerstone at Farmingdale and the 154-unit complex called Farmingdale Plaza.
At a hearing in Farmingdale last month, Chuck Gosline, 65, a retired engineer who lives in the village, said he was against the tax abatements.
“I don’t think it’s fair for someone putting up luxury apartments to get tax breaks because the burden keeps getting passed on to the regular taxpayers and it’s not right,” Gosline said.
Deegan said that without the IDA assistance the project couldn’t be built.
“They wouldn’t be able to build it. . . . The financials would not work out paying full taxes,” Deegan said.
Mayor Ralph Ekstrand, who is a strong booster of new development, said in an interview that the tax breaks make it financially feasible for the projects to get built due to the high cost of land on Long Island.
“You’re not going to get new housing without the IDA stepping in,” Ekstrand said.
The developer still needs final approval from the IDA but it has yet to get on the agency’s calendar. The developer plans to begin construction in June and complete the project in January 2019.