The Babylon Town Industrial Development Agency on Thursday will hold a public hearing on a proposed tax deal for an apartment complex in Lindenhurst that would result in payment of about half the estimated taxes.
Tritec Real Estate of East Setauket asked for a tax abatement for a 260-unit multifamily rental complex they are building across from the Lindenhurst Long Island Rail Road station. The company has promised a $102.6 million investment and the creation of 247 construction jobs and six permanent jobs.
The IDA is proposing a 30-year Payment in Lieu of Taxes, or PILOT, for the project. Under the proposal, the school district, Babylon Town and Suffolk County would receive payments totaling $300,479 for the 2019 to 2020 tax year. The village would receive its first payment of $40,000 in 2020.
The payments would increase two percent each year until 2029, when payments would be phased in based on the new assessed value and increase by 4.76 percent each year.
Current taxes on the property are $335,145, according to the IDA. Total property taxes for the 30 year time frame are estimated by the IDA to be about $60.5 million. Tritec would pay about $31.9 million of that: $22 million to the school district, $3.8 million to the county, $3.6 million to the village, $1.5 million to the town and $1 million to the library.
The deal gives the company a tax savings of $28.6 million. Tritec also is receiving about $2.6 million in sales tax and mortgage recording exemptions.
In its document outlining the deal, the IDA cites several reasons for the tax break, including the apartments’ proximity to the train station and the need for rentals “to help retain Long Island’s younger workforce.” The IDA also states that the project is not feasible without the abatement, stating that PILOTS “make taxes more predictable for the lender and attract financing by stabilizing costs.”
The hearing will take place at 7 p.m. at the Lindenhurst Middle School, 350 S. Wellwood Ave.