Suffolk lawmakers drop $500,000 building plan for companies in Start-Up NY

The Suffolk County Legislature on Tuesday abandoned a $500,000 plan for the design of new county buildings to house startup companies seeking state tax incentives after legislators balked at spending for a state program.

Suffolk County Executive Steve Bellone's administration and Stony Brook University had pushed to start design of a series of $5 million buildings that could be placed in downtowns -- including Ronkonkoma and the proposed Heartland development in Brentwood -- for businesses taking advantage of Start-Up New York.

Legis. Thomas Barraga (R-West Islip) said the Start-Up program should be paid for by the state. "If you think it's such a great idea, fine. But why should we pick up the tab?" Barraga asked.

Legis. Tom Cilmi (R-Bay Shore) noted the county faces a steep deficit already. "Here we are giving tax breaks to targeted companies at a time we can't afford to pay our own bills," he said.

But Legis. Rob Calarco (D-Patchogue) said, "The reality is we have to make ourselves competitive with the rest of the state. Whether we like it or not, this is a tool we have."

Lou Bekofsky, deputy county commissioner of economic development, acknowledged that no other county has paid for buildings for companies taking advantage of Start-Up New York. But he said this would put Suffolk on the cutting edge. "This is a job creation program for Suffolk County," he said.

While county officials told lawmakers that locations still were being considered, the resolutions specifically named Patchogue, Riverhead, Wyandanch, Ronkonkoma and Heartland as areas the county would target.

Ann-Marie Scheidt, director of economic development for Stony Brook University, said the incubators on campus have been a success, but there is not enough space on campus for businesses to expand.

The bill to authorize the deal passed 10 to 8. Supporters withdrew a second bill to pay the $500,000 for the design because it was clear they didn't have the 12 votes necessary to borrow for it.

County officials said later that they expect to bring back the bonding resolution early next year, when they'll have more specifics about locations.

Bellone has budgeted $5 million in 2016 for the Start-Up New York buildings.

The state plan, pushed by Gov. Andrew M. Cuomo, allows companies to operate without property, sales or business tax in New York for 10 years. Employees get income tax exemptions for five years.

By David M. Schwartz

dschwar1@newsday.comschwartznewsNY

David Schwartz covers environmental issues. A native Long Islander, he's worked at Newsday since 2013.