Gyrodyne, the company proposing to subdivide its St. James property for uses like medical offices, assisted living and a hotel, said in an annual report last week that it might expand its relationship with Stony Brook University.
The university and affiliates like Stony Brook Hospital rent more than one-fifth of the 127,481 rentable square feet at Gyrodyne’s Flowerfield location on North Country Road near the Brookhaven Town border. The university pays $628,440 in rent now, and its payments are expected to make up about 30% of Gyrodyne’s 2020 rent revenues. The company collected $2.2 million in rent payments in 2019 at Flowerfield and a Westchester property, Cortlandt Manor.
The annual report, known as a 10-k and filed on March 26 with the Securities and Exchange Commission, said expanding its leasing relationship with Stony Brook was a “core part” of its strategy. There is unrented space at Flowerfield, and Gyrodyne in February signed an agreement with a real estate finance firm intended in part to “finance tenant improvements on new leases;” it could also draw on an existing loan to finance improvements the university or other tenants might need.
Company representatives said they expected Smithtown would finish its environmental review of the company’s proposal over the summer. Gyrodyne would subdivide about 70 acres for development.
Smithtown officials have said the project could bring significant tax revenues and bonuses, including a sewage treatment plant that would serve downtown St. James as well as the Gyrodyne site. Neighbors — including elected officials from Brookhaven Town, Head of the Harbor Village and civic groups — have said development on the scale the company is proposing could bring traffic and environmental problems.
Gary Fitlin, the company’s chief executive, did not respond to a request for comment, and neither did a Stony Brook spokeswoman.