AvalonBay Seeks Tax Relief

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avaNassau County’s Industrial Development Authority (IDA) is considering granting tax relief for the proposed AvalonBay apartment complex on East Shore Road in the Village of Great Neck. The IDA held a public hearing last Thursday morning at Village Hall. The IDA is a Nassau County agency that considers such tax relief requests.

If granted, the tax relief would include a reduction of real estate taxes, exemption from sales taxes and exemption from mortgage recording taxes (although the AvalonBay application states that they will not be financing the project with a mortgage).

At the short hearing, one union representative spoke against the requested tax relief and another union representative spoke in favor. Old Village Mayor Ralph Kreitzman said that although he generally does not approve of these exemptions for residential developments, in this case, however, he does approve. The mayor said he and his board did not find any negative impacts (environmental impacts).

As well, 12 years ago the village had tried to rezone this area but that never came to fruition. For years, Kreitzman met regularly with the property owner and it was not until AvalonBay approached the village that hope was revived to clean up this “eyesore” and provide much-needed housing (including the 20 workforce housing units). Work on the project would include DEC (Department of Environmental Conservation) mandated environmental clean-up.

The IDA will meet again to consider the tax relief request.

The village, which has held several meetings and public hearings regarding the AvalonBay project, was scheduled to meet on Tuesday evening, Feb. 4, to consider granting approval to the development. By that date, approval was expected to be received from the Nassau County Planning Commission.

If AvalonBay receives final approval from the village, and tax relief from the IDA, the village will get a PILOT (payment in lieu of taxes) payment as well as an incentive/community benefit payment.

1 COMMENT

  1. Strongly support unionized (always!) construction workers and their unions so that there’s steady, safe work. But Avalon Bay is once again trying to drain the public trough in an environmentally sensitive location on the North Shore of Long Island. A.B. doesn’t need the subsidy. No surprise the firm speaks from both sides of its corporate mouth, as in the NASDAQ release below.

    Late Jan 2014: AvalonBay Communities Inc. ( AVB ) said its fourth-quarter earnings more than doubled as the apartment operator reported higher rental rates, led by strong growth in northern California.

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