Tenants' jobs protected in return for Nassau County landlord winning more tax breaks
The Milvado Group recently won additional tax breaks from the Nassau IDA. Shown is a Milvado building at 6801 Jericho Tpke. in Syosset. Credit: Newsday/Kendall Rodriguez
A landlord, in return for additional tax breaks from Nassau County, has promised that at least 1,512 people will be employed by the tenants of its buildings in the county, officials said.
Milvado Property Group won final approval last month from the county’s Industrial Development Agency for 11 more years of property-tax savings on top of the 15 years first awarded in 2013 for 12 of the 14 buildings. The other two received 15-year deals, starting next year.
The Syosset-based landlord also was awarded a mortgage-recording tax exemption of up to $2.6 million.
Still, the new package of incentives is far smaller than the one proposed by Milvado in March.
WHAT TO KNOW
- A Syosset-based landlord has promised that the tenants in its Nassau County buildings will employ at least 1,512 people in return for the landlord receiving additional tax breaks from the county.
- Milvado Property Group won 11 additional years of property-tax savings for 12 of its 14 buildings. The other two received new savings deals of 15 years each from the county's Industrial Development Agency.
- Several other IDAs across the state have granted tax incentives to landlords that have pledged their tenants will maintain employment levels, according to the New York State Economic Development Council, an IDA trade group.
Milvado had asked for 30 years of additional property-tax savings — for a total of 45 years — along with a sales-tax exemption of up to $8.4 million and up to $2.6 million off the mortgage-recording tax. The company also had pledged only to protect the jobs of its 12 employees.
At the time, the proposal was greeted with skepticism, with IDA board member Reginald Spinello, a former Glen Cove mayor, questioning whether 30 more years of property-tax breaks was necessary to revamp the dated buildings.
At last month’s IDA meeting, Spinello supported the smaller incentive package, praising Milvado for agreeing to guarantee the jobs of hundreds of people who work for building tenants.
John Ryan, Milvado’s real estate attorney, said it was “putting our efforts behind that guarantee to ensure those … jobs will be in Nassau County at the risk of losing the [tax-saving] benefits.”
He said the company needs more help because its buildings were constructed long ago and now require upgrades, including at least $25 million in changes to comply with new environmental regulations from New York State.
More than 80% of the buildings’ leases will expire in the next five years and not all will be renewed, in part because of the popularity of working from home. Ryan said 6801 and 6901 Jericho Tpke., both in Syosset, have “significant vacancies.”
The two lie within the Syosset Central School District, along with three other Milvado properties that have been receiving property-tax savings since 2013, according to Superintendent Thomas L. Rogers.
He said the additional tax breaks would “negatively impact the school district” because they “potentially constrain the district’s current and future local revenue stream … . Any further increase in these [Payments In Lieu of Taxes] will further shift the tax burden to the rest of the school district’s taxpayers,” Rogers wrote in a July 29 letter obtained by Newsday via the state’s Freedom of Information Law.
State records show that Milvado has saved more than $16 million off property taxes since 2013 and $270,000 off sales taxes.
The new incentive package calls for the property tax rate to increase 2% each year.
The IDA acknowledged the school district’s concerns but voted unanimously to approve the additional tax breaks.
“Part of our mission is to keep jobs in those buildings, to keep them in Nassau County,” said William Rockensies, IDA chairman and an engineer. Milvado “is willing to guarantee us 1,500 jobs and to make an important investment to reduce the buildings’ carbon footprint. This is the type of project that we want to do,” he said in an interview.
Elsewhere in the state, several IDAs have granted tax incentives to landlords in return for pledges that building tenants will maintain employment levels, according to Ryan M. Silva, executive director of the New York State Economic Development Council, which represents IDAs in Albany.
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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