A developer’s plan to build a $ 98 million warehouse opposite Melville’s Long Island Hilton (with a tax cut from Suffolk County) is that an out-of-state contractor builds another warehouse nearby for the same developer. Because it is, it is in danger.
Hartz Mountain Industries Inc., a large real estate developer with its roots in selling canaries and pet supplies, wants to build a 411,000-square-foot warehouse on Spagnoli Road. The facility has been used by the National Grid to train employees to ditch natural gas lines.
According to a tax cut Hearts application from the county’s Industrial Development Agency, 200 to 300 people will work in the warehouse and earn an average of $ 45,000 a year.
What you need to know
- Developer Hartz Mountain Industries Ultimately, we want to build a warehouse on Spagnoli Road in Melville, where up to 300 people work.
- Tax reduction This project is suspicious, as some out-of-state contractors are another Hearts project in Suffolk County.
- Critic Calls on the Suffolk County Industrial Development Agency to regain previously awarded tax aid
Records show that a $ 8.5 million tax aid package includes a $ 5.1 million property tax discount over 15 years, or a 30% savings.
However, the IDA board voted last month in a five-to-one vote to decide whether to approve tax cuts after three county lawmakers, state legislators, and several construction unions blamed Hearts on a nearby project. Postponed the.
Critics say New Jersey-based developers are using out-of-state contractors to build a one-million-square-foot warehouse at 235 Pinerone Street, also located at Melville and the former Newsday headquarters. The project received a $ 16.8 million tax incentive over 20 years in a 4 to 2 vote by IDA in November.
law. Tom Donnelly (D-Dear Park), who represents the region, said the IDA Board promised an additional tax cut on Hearts Mountain in November to comply with IDA’s Long Islands First Policy. I should refuse until I keep it. “
IDA’s “Long Islands First” Policy
The bi-local policy is “As much as possible. [IDA] Project applicants should consider purchasing goods and services from Long Island-based providers, companies, and vendors, and provide all employment opportunities to Long Island residents first, wherever possible. is needed. “
Hearts and Aurora Contractors, general contractor of Aurora Contractors’ Pinerone Road Project in Ronconcoma, are working on steel and precast concrete contractors in Alabama, South Carolina and Pennsylvania. Confirmed on Newsday that the order was placed. According to Hartz and Aurora Contractors, no local company can produce the precast concrete needed for the project.
James P. Raatican, Vice President of Land Use and Development at Hartz, said the company is in full compliance with the Long Islands First Policy, with 96% of its spending directed to local businesses, primarily Aurora Contractors. I added that.
“We do everything we can, [Aurora Contractors] Mentioning the construction union, he said at an IDA meeting, “We do not interfere with the employment of subcontractors. It only leads to trouble.”
According to contractors, 75% of workers are from the local area
Frank Vero Jr., president of Aurora Contractors, did not attend the IDA meeting, but told Newsday last week that “more than 75% of the work was given to long island contractors.”
“As a local company with over 40 years of history in this community, we [the] Long island first [policy] And we always adhere to the set requirements, “Bello said.
At the IDA meeting, Chairman of the Board Natalie Wright said: [Hartz] Is making sincere steps to comply with Long Island First’s policies regarding the Pinelawn Road project.
Of the 109 active IDAs in the state, only Suffolk has a written local purchase policy as part of the tax cut application, said Wright, Chief Executive of Hong Kong’s Economic Development Commissioner Steve Belone. Other organizations, such as Nassau IDA, have verbally emphasized the importance of hiring long islanders.
The last major controversy over compliance with Suffolk policy arose in 2012. It involved the purchase of a stormwater drainage system by Walt Whitman Shops, which was then expanding in South Huntington, over Bellport’s competing system.
Federal power and clawback
Long Island First’s policy does not require the use of local contractors or workers in IDA-backed projects. IDA lawyer William Wexler said the federal constitution that regulates interstate commerce Said to violate the authority of the. Tax incentives for violations.
That’s what Hearts critics, including the union’s umbrella organization, the Long Island Labor Federation, are looking for.
IDA withdraws benefits granted by Hartz to apply to Melville’s 235 Pinelawn Rd. And refuses to consider a second application for benefits related to the National Grid site on Melville’s Pinelawn Road. “is needed. Political director.
Federations and other organizations have lobbied for changes to the Long Islands First Policy, but amendments have been submitted by the IDA Board to allow additional negotiations.
last week. Rep. Thomas Suozzi (Democrat-Glen Cove) said hiring an out-of-state contractor for the Pinel Loan Road project would “should Hearts ultimately maintain or withdraw tax cuts?” In a letter, Suozzi suggested to Hearts Chairman Gus Milano to “promote a meeting” with local union leaders.
Developers violate Suffolk’s “LI First” recruitment policy
Source link Developers violate Suffolk’s “LI First” recruitment policy