With Nassau County approval of a 15-year tax break, AvalonBay has moved another step closer to rehabilitating the vacant, polluted land at 240 East Shore Road and building a 191-unit luxury apartment complex. The Nassau County Industrial Development Agency approval came last week, following IDA hearings, according to Executive Director Joseph Kearney.
Following the Feb. 18 Village of Great Neck Board of Trustees vote in favor of rezoning the property, the IDA began hearings to consider AvalonBay’s tax relief request. At that meeting, Old Village Mayor Ralph Kreitzman had explained once again that “as a matter of principle” he did not approve of IDA benefits for residential projects, but in this case, the village board agreed. He again emphasized that the AvalonBay development would not only clean up the area, but would also develop a long-fallow piece of property, adding housing and value to the village.
Kearney told the Great Neck Record that this project is expected to bring $56.4 million worth of benefits to the local community. The PILOT (payment in lieu of taxes), which was also approved at the recent IDA meeting, will most likely produce about $9.3 million in taxes, money that will go to local municipalities. Kearney noted that without their approval, with this project not going forward, only about $1.3 million of tax money could be expected over the 15-year period.
In addition, Kearney explained that the PILOT schedule will increase annually, from $95,000 for the first year, to $958,110 in the fifteenth year. As well, Kearney added that the developer, AvalonBay Communities, will also receive a maximum of $2 million from relief for the sales and use tax.
The property will also include 20 workforce housing units (10 percent of the total units).
A DEC (Department of Environmental Conservation) mandated clean-up will return the contaminated property, now containing unused fuel tanks, to an environmentally sound state.
The next steps in the AvalonBay development include site plan review and architectural review by the village board of trustees.
Kearney said that construction is expected to begin this December and finish by January 2016.