Public hearing on proposed $4M tax break for East Farmingdale apartments

A public hearing will be held Wednesday on a proposed tax break for an East Farmingdale apartment complex that would save the developer more than $4 million in property taxes.

Park Plaza Holdings LLC of Bay Shore is constructing a 78,000 square-foot building for 48 apartments on 1.1 acres on the corner of Eastern Parkway and Denton Place. Ten apartments would be for affordable housing.

Construction would start this summer and the apartments ready to be leased in spring 2024, according to the company’s application to the Babylon Town Industrial Development Agency.

The company is asking the IDA for a 20-year payment in lieu of taxes for the complex. The deal would provide a 100% abatement in the first year and decrease by 5% each year after, ultimately giving the company a savings of $4.06 million in property taxes. The company also seeks an abatement of $573,750 in mortgage recording and sales tax, resulting in a total savings of $4.64 million. The company would pay $34,166 in taxes the first year and $512,501 by year 20 of the deal. 

“This project is not economically viable” without the abatement, the application states, and would result “in a loss of property tax revenue for Suffolk County” and the site remaining “dilapidated.”

Parkway Properties Inc., which is listed on the IDA application as a 3% owner of the company, was given the green light to build the complex in 2014, when the town found that there were no environmental issues and the apartments would not create a significant increase in local traffic. Zoning for the property was changed from single-family residence and industry to multiple residence.

In 2017 the company submitted a modified site plan that added a basement for storage units, a party room, recreation room, and a leasing office, said town spokesman Kevin Bonner. The company suffered delays due to the pandemic and attempts to secure financing, he said. A building permit was issued in December 2021. 

The hearing will be held at 8 a.m. at 47 W. Main St., Babylon, and livestreamed on the IDA’s YouTube channel. Those wishing to comment can write the IDA or call 631-587-3679 prior to the hearing.

By Denise M. Bonilla

denise.bonilla@newsday.comdenisebonilla

Denise Bonilla has worked at Newsday since 2003 and covers the Town of Babylon, including the villages of Lindenhurst and Amityville.