Redeveloper saves big on tax bill

Getting a tax break is everyone's dream. It happened recently for Joe Farkas, president of Metropolitan Realty Associates of Jericho.

Hempstead Town's Industrial Development Agency agreed to cut taxes for 10 years on a Garden City building Farkas acquired in May for $15 million at 711 Stewart Ave.

Farkas, who resuscitates distressed properties, will be able to use the tax break to redevelop the building for office, medical and retail space.

The payment-in-lieu-of-taxes program will cut taxes at the building to about $2.91 per square foot for three years. Taxes on the building, which is only 22 percent leased, are now $6.80 a square foot. They will step up annually over seven years until they return to current levels.

Hempstead IDA executive director Fred Parola said the building has had trouble keeping tenants.