Tax deal keeps firm, jobs in Hauppauge

In an attempt to keep more than 500 mostly manufacturing jobs in Islip, the town Industrial Development Agency will extend a 15-year payment in lieu of taxes agreement worth a projected $2 million to Hauppauge-based Positive Promotions Inc.

The town board, meeting as the IDA board, approved the agreement last week.

IDA director William Mannix said the previous PILOT agreement, worth $451,165 over the past 10 years, expires this year. He said Positive Promotions, which manufactures promotional advertising products, has faced significant losses and alerted the town to incentives offered by Arizona and Texas in late 2011.

"They made us aware that they had serious offers and shared those offers with us . . . They shared their finances with us and demonstrated to us, to our satisfaction, that there was a real threat that they would leave," Mannix said last week.

PILOT agreements usually start with significant tax breaks that taper off each year, Mannix said. This year, Positive Promotions paid $391,000 in property taxes; the firm's full tax bill was $424,300. In 2013, it will receive about a 60 percent tax break per the new agreement.

The company also accepted $1,370,000 in assistance from the state's Empire State Development agency in May, spokesman Jason Conwall said.

"We believe we've secured them and their 500-plus jobs in Hauppauge," Mannix said. The average annual pay at the company is $47,563, and Mannix said an overwhelming majority of employees live in Brentwood, Central Islip and Bay Shore.

The tax agreement and a renewed lease are expected to be signed by the end of summer.

Company officials did not return calls for comment.