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Babylon IDA grants $7.5M tax deal to developer building luxury rentals

The Village by the Bay apartments near the

The Village by the Bay apartments near the Long Island Rail Road station in Amityville will consist of 38 studio, 65 one-bedroom and 12 two-bedroom units. Credit: Howard Simmons

The Babylon Town Industrial Development Agency is giving an Amityville apartment developer a 20-year tax deal that will save the developer more than $7.5 million.

The IDA approved the deal with Village by the Bay LLC on Dec. 18, the day after a public hearing was held on the proposed tax abatement. No one from the public attended the 4:30 p.m. hearing at Amityville Village Hall.

Village by the Bay, formerly known as GreenTek Living LLC, is using 2.4 acres of land at 235 County Line Rd. and 124 Greene Ave. to create 115 luxury rental units. The apartments, located near the Long Island Rail Road station, will consist of 38 studios, 65 one-bedrooms and 12 two-bedrooms. The village approved the project last year, including the creation of a transit-oriented zone that allows for greater density in a 32-acre area bordered by Broadway, County Line Road, Sterling Place and West Oak Street. 

The IDA is giving the company a 20-year PILOT, or payment in lieu of taxes, whereby the current annual taxes on the property will be frozen at their current amount — $110,326 — for five years. Taxes will then increase in years six through 20 by 6.25 percent a year, until they reach 100 percent. At that point the taxes on the property are estimated to be more than $872,000, IDA officials said.

The company will pay $7,877,167 over the life of the PILOT, officials said, and will save $7,501,268. Village by the  Bay will also have a sales tax abatement of $997,638 and a mortgage recording tax abatement of $240,000.

Village by the Bay is investing $36,315,557 in the project, officials said, with the promise to create 30 temporary construction jobs in the first year and 10 full-time jobs over the first two years.

The company also has offered the village more than a half dozen incentives for the project, including preserving a 19th century building on site, creating a pedestrian path from the train station to the downtown and giving the village a 20-year annual payment of $36,000.

Construction on the project has already begun, village officials said, and is expected to last 18 months.

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