Newsday, May 18, 2016 By John Asbury |
The Hempstead Industrial Development Agency approved $33 million in tax breaks for developers to build a five-story, 336-unit apartment building as the start of a downtown redevelopment project.
IDA board members voted 9-2 on the motion to give Plainview-based developer Renaissance Downtowns and Uniondale-based RXR Realty tax breaks over 10 years with an option to extend the tax break for another 10 years for the full $33 million.
Renaissance developers plan to build the luxury apartments on a parking lot across from Hempstead Town Hall at Washington and Front streets. They are also investing $2 million to renovate an existing parking garage.
The building is expected to be the cornerstone of a $2.5 billion project to add apartments, shops, restaurants, parking, a hotel and movie theater in Hempstead Village over the next 10 years.
Under the agreement, developers will pay more than $8 million in taxes to the village for the project over 10 years, rather than 20 years, which was originally proposed. The village is also getting an $8 million community benefit payment after transferring 14 vacant parking lots to developers at no cost.
“At the end of 10 years, it would bring more money into the village and school than initially realized,” IDA chairman Fred Parola said.