Tax breaks OKd for Rechler at SMSC

A landlord Thursday received tax breaks to renovate part of a prominent public company's headquarters in Hauppauge and rent that space to other businesses.

The Suffolk County Industrial Development Agency ratified a deal saving Rechler Equity Partners about $650,000 in property taxes over 10 years on the SMSC building at 80 Arkay Dr.

Rechler also will get a sales tax break, valued at $170,000, on materials and equipment for the $4-million renovation. The developer plans to convert to offices about 76,400 square feet of the 199,616- square-foot building.

Rechler recently completed its $18-million purchase of the SMSC headquarters, giving needed cash to the company, which makes integrated circuits and USB and Ethernet controllers for computers.

SMSC, once known as Standard Microsystems Corp., won approval in October to receive tax breaks for another five years. In 2005, the development agency provided SMSC a 10- year Payment In Lieu of Taxes agreement.

The continuation of the property tax break and renting, instead of owning, its office will help SMSC remain on Long Island. It has 300 workers here.

A possible tenant for some of the vacant SMSC space is Gemini Fund Services, which provides administrative services to mutual funds and hedge funds.

Gemini, once called American Data Services, wants to expand. It has two offices in Hauppauge, where 80 people work. But Thomas Stringer, a relocation consultant, said Gemini could move to Nebraska where its parent company, NorthStar Financial Services Group, recently built a headquarters.

The IDA offered a sales-tax break of $170,000 on equipment purchases of $1.9 million. Gemini hopes to rent 31,000 square feet of space.

IDA chief Jim Morgo didn't participate in the debate or vote on either project because he's a consultant to Rechler.

Separately, the IDA considered a proposal from a large employer in Islip town. The publicly traded company, which wasn't identified, asked for a 15- year property tax reduction on four buildings it uses. Executives have promised to invest $75 million in machinery and maintain the local workforce, between 1,000 and 2,000 people.

"This is a regionally significant project; we want to keep them in Suffolk County," Morgo said. "We're enthusiastically inclined to enter into discussions with the company."