A Deer Park-based manufacturer and distributor of over-the-counter generic pharmaceuticals and dietary supplements wants to purchase a building within the hamlet and replace its existing tax break deal with the Babylon Industrial Development Agency with a new agreement that will save the company $2.7 million.
Allegiant Health wants to use a 70,231-square-foot property at 91 N. Industry Ct. to "invest in, enhance and expand its research and development, laboratory and manufacturing capabilities at its current facility by repurposing space previously used for warehouse and distribution," according to its Nov. 23 application to the IDA. The company is located less than a mile away at 75 N. Industry Ct. and employs 130 people.
The company has its headquarters in Deer Park and a warehouse in Hauppauge. If the property sale closes, the Hauppauge warehouse will close and relocate to Deer Park, consolidating all of Allegiant’s operations in the hamlet.
Debra Porti, vice president of Allegiant Health, said the six new jobs added would be a 60% increase from the current warehouse staffing of 10. The average annual salary for the proposed jobs ranges from $30,000 to $40,000, according to the application. The company has another warehouse in Hauppauge but would relocate to the new location in Deer Park, Porti added.
"We’re really hoping e-commerce takes off," Porti said. "It has been, and if it keeps going the way it’s going, I’m going to be adding a lot more jobs over there [at the proposed new warehouse in Deer Park] and over here at our headquarters."
The new application for financial assistance would, if approved, replace Allegiant Health’s existing Payment in Lieu of Taxes, or PILOT, agreement. The new agreement would also be a 15-year PILOT in which Allegiant Health would save $2.7 million. Without the PILOT, the company would pay $496,371 in taxes annually.
Allegiant is in the fourth year of a 15-year PILOT, paying $184,931 annually in taxes, which at its completed term would save the company $1.7 million. In its application, Allegiant Health said that without the financial assistance it can’t proceed with its expansion. The company did not indicate in its application a plan to move out of state if the new PILOT request is not approved, and Porti said the company has a long history working in the hamlet.
IDA CEO Tom Dolan said Allegiant Health made a smaller investment on the original PILOT and added 130 jobs. The new PILOT would allow the company to expand and manufacture in a growing industry, Dolan said. The workforce in the drug and vitamin industry has expanded on Long Island by 64% in the past dozen years, according to a report released in 2019 by the Suffolk County IDA and the Workforce Development Institute, a statewide nonprofit group on worker training.
The purchase of the Deer Park location remains under contract, Porti said. The purchase of the new building along with laboratory and manufacturing equipment for the 75 N. Industry Ct. location will cost nearly $11 million, according to Allegiant Health’s application with the IDA.
The current owner, listed as "N Industry Ct LLC," paid $148,932 in property taxes this year, said Babylon Town spokesman Dan Schaefer.
The IDA will hold a Dec. 15 public hearing on the project via its YouTube channel. Public comments can be submitted via email to firstname.lastname@example.org before 4:30 p.m. on Dec. 14. Residents who want to speak at the meeting can do so by sending an email to email@example.com before 1 p.m. Dec. 15.
- Founded in July 2014
- Employs 130 workers
- Plans to create 6 jobs over three years
Source: Babylon IDA