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Babylon Town IDA to hear companies' requests for $1.5M in multiyear tax breaks

The building at 160 Finn Ct. in Farmingdale,

The building at 160 Finn Ct. in Farmingdale, seen on July 10. Credit: Linda Rosier

The Babylon Town Industrial Development Agency is holding public hearings Tuesday on proposed 12-year tax deals for two East Farmingdale businesses whose owners contend that COVID-19 has increased demand for their products and services.

3G Warehouse Inc., a third-party logistics and distribution company that contracts with retailers doing online commerce, is seeking a 12-year Payment in Lieu of Taxes agreement, or PILOT, which will save them an estimated $971,050 in property taxes. They are also seeking a sales tax exemption of $4,313 and a mortgage recording fee exemption of $120,000, for a total savings of $1.09 million.

3G currently leases 103,221 square feet at 565 Broadhollow Rd. but as part of this deal would purchase the building, renovate it and install new equipment. The company plans to invest $20 million, while adding seven jobs over the next two years. 3G has 35 employees who have an average salary of $44,845.

"The E- Commerce sector is experiencing explosive growth, especially, but not exclusively, since the advent of COVID-19," the company wrote in its application to the IDA, adding that the company is "turning away work due to lack of space and equipment."

Without the IDA deal, 3G would likely expand its operations in New Jersey instead, where the company leases a building and where "labor, energy, transportation, and tax costs are all more favorable" than Long Island, the company wrote.

D’Addario & Company Inc., which manufactures musical instrument accessories, is seeking a 12-year PILOT that would save the company an estimated $416,550 in property taxes as well as a sales tax exemption of $60,375, for a total savings of $476,925. The company wants the abatement for 160 Finn Ct., a property it is looking to buy. D’Addario is one of the town’s largest employers, with five properties on Smith Street and 883 employees whose pay averages $48,518 a year, according to the company.

"As a result of the Covid-19 pandemic, we have seen increased demand for musical instrument strings," the company wrote in its application to the IDA, saying they need this new location to produce more guitar and orchestral strings. If the IDA deal does not go through, the company "will not proceed with the purchase of this property," its officials wrote.

The company, which plans to invest $8.3 million into the new property, has Babylon IDA abatement deals on all of its Smith Street locations.

The hearings will start at 9 a.m. at 47 West Main St., in Babylon and can be viewed via livestream at www.babylonida.org/documents.

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