The master developer for Huntington Station on Thursday received preliminary approval for $900,031 in tax breaks over 15 years from the Suffolk County Industrial Development Agency for a project slated for the hamlet.
The breaks are for the $5.12 million Northridge Project proposed by Plainview-based Renaissance Downtowns at Huntington Station LLC.
Under a 15-year PILOT, or payment in lieu of taxes, the developer will pay $55,007 the first year in property taxes, with the benefit decreased by four percent a year, until reaching full taxes of $132,016 in the 15th year, a savings of $660,082.
The abatement plan also allows for up to $200,908 in sales tax exemptions and mortgage recording tax exemptions of up to $39,041.
“The reality is I can’t make the numbers work without some type of tax assistance or abatements,” said Ryan Porter, Renaissance Downtowns’ vice president of planning and development. “But there have been little to no taxes paid on this site for the better part of 50 years.”
The property is owned by the town and is currently exempt from paying real property taxes.
The Northridge Project is on the northeast corner of Northridge Street and New York Avenue. The 3-floor structure will consist of commercial use on the ground level, eight apartments on the second floor and eight apartments on the third floor.
The project is part of a multiphase effort by Renaissance to revitalize the hamlet. Other proposed projects include a hotel, a mixed-use building at 1000 New York Ave., and artist lofts and gallery space along New York Avenue.
Town Supervisor Frank Petrone said eventually the abatements will be exceeded by other tax revenues and economic development growth.
“Also, currently the parcel generates zero in property taxes,” he said. “In the first year alone it’s going to bring in $55,000, that’s a public benefit right there.”
Tony Catapano, executive director of the Suffolk IDA, in a news release, touted mixed-use projects, citing the boost they give to the economy and community.
“The economic opportunities a project like this can provide a community are significant, especially when you consider its proximity to mass transit and main thoroughfares,” Catapano said.