Milvado Property Group wants 45 years of tax breaks for industrial buildings in Nassau County
One of Milvado's Syosset properties. Credit: Google
The owner of 14 buildings that are used as offices, factories and warehouses is asking for 30 years of tax breaks from Nassau County — on top of the 15 years of tax savings that were granted in 2013, officials said.
Milvado Property Group has saved more than $19 million in property taxes under the earlier tax-incentive package from the county’s Industrial Development Agency.
That package ends in 2029 and includes a sales-tax exemption of nearly $270,000 on the purchase of construction materials, equipment and furnishings, according to state records.
Despite the forthcoming property-tax savings, Syosset-based Milvado needs more help because its buildings were constructed long ago and now require $100 million in improvements, including at least $25 million to meet new environmental regulations from New York State, the officials said.
Besides property-tax breaks, the company is requesting a sales-tax exemption of up to $8.4 million on the purchase of materials and equipment for the planned improvements and $2.6 million off the mortgage recording tax.
The request for additional aid was met with skepticism at last week’s IDA meeting.
IDA member Reginald Spinello, a former Glen Cove mayor, asked, “Explain to me why you need a 30-year PILOT [Payment-In-Lieu of Taxes]?"
John Ryan, Milvado’s real estate attorney, responded by saying that more than 80% of the buildings’ leases will expire in the next five years and not all will be renewed, in part because there is less demand for office space with employees working from home.
He also said the duration of the additional tax breaks “coincides with [Milvado’s] development plans as we currently expect them to unfurl,” including steps to comply with the state’s 2019 greenhouse-emissions reduction law.
Spinello said, “But you still have a PILOT until 2029. … So, you want [the property-tax savings] to go out to 2059?”
Ryan said, “That’s what we are asking for.”
Minutes later, Spinello put forward a resolution authorizing the IDA to begin negotiations with Milvado for another tax incentive package. But he said more research needed to be done before awarding 30 more years of property-tax savings.
The board approved the resolution unanimously.
Later, board chairman William H. Rockensies said the IDA isn’t endorsing the Milvado request by agreeing to start talks. “This is subject to negotiation, a back-and-forth with the applicant,” he said in an interview.
Milvado, also called Long Island Industrial Management LLC, first sought help from the IDA in 2013 for 12 of the 14 buildings, half of which are in Hicksville.
At the time, the company said the buildings were dilapidated, with 31% of the space vacant.
In return for the tax breaks, Milvado promised to spend $26.7 million on upgrades, including improvements to building facades and interiors as well as new electrical and heating systems. The latter would reduce energy consumption by 15% per year, said Lisa Cairo, the company’s then real estate attorney.
Milvado has since added two properties to the portfolio: 6801 and 6901 Jericho Tpke. in Syosset.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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