Islip IDA votes to recoup tax benefits given to Central Islip business

The Islip Town Industrial Development Agency board voted Tuesday to terminate IDA benefits given last year to a Central Islip business and to recoup the $36,750 in mortgage recording tax benefits the company received after the town learned the owner had put the property on the market.

Reiko Wireless, on Carleton Avenue, relocated from Brooklyn and was also given a 14-year tax abatement when it promised to create 68 new jobs in addition to the 36 it would retain. The business did not receive a tax abatement during this current year, said William Mannix, executive director of the Islip IDA.

"This is a project which we closed late last year and when we became aware earlier this year, in June, that the project owner had put the property on the market and was not intending to use it for its intended purposes under the IDA agreement, we took steps to declare it a recapture event," Mannix said during the IDA meeting Tuesday at Town Hall, meaning to take steps to recoup benefits.

Yulong Zhang, president and CEO of Reiko Wireless -- billed as a "factory-direct manufacturer and importer offering thousands of accessories," according to the company's website -- could not be reached for comment.

In a statement last year about the deal, Zhang said: "We look forward to a lasting partnership with the town."

The company had plans to renovate the space to use as an office and distribution center. Construction was set to begin last year and finish in November to take occupancy by December.

But the building was never occupied, said Mannix, who was "surprised and disappointed" when he found out what was happening.

The IDA board voted unanimously to pass the resolution, which also will now bring the property onto the town's full property taxation rolls, Mannix said. Islip Town Board members comprise the IDA board, and the IDA meetings are held within the town board meetings.

"It's important to know that as aggressive as you are in luring businesses here and encouraging them to sign in the Town of Islip and increase jobs, etc., we're watching if someone is taking advantage and not living up to their requirements," Islip Town Supervisor Angie Carpenter said during the meeting.