iStar denied tax break

Three months after many residents called on the Nassau County Industrial Development Agency to reject a 25-year, $128.6 million tax break sought by a developer to build two luxury apartment towers on the vacant Superblock property, the agency rejected the request on Tuesday.

County Legislator Denise Ford (R-Long Beach) and former U.S. Sen. Alfonse D’Amato joined hundreds of residents at a hearing the IDA held in June at City Hall. Most in attendance opposed the Manhattan-based developer iStar Financial’s request for a payment in lieu of taxes, or PILOT, program.

Ford said that the decision was not surprising. “I’m glad the IDA listened to the people and made the right decision,” she said. “I think they were amazed at how many people came and spoke against it, and they did receive emails and calls from residents who are against it.”

Last year, iStar said that the $300 million project would revitalize the six-acre Superblock, a parcel that has remained vacant for 30 years and had been mired in litigation. The Zoning Board of Appeals gave the developer approval to build 522 one- and two-bedroom rental apartments in two 160-foot-tall buildings as well as 11,500 square feet of retail space for shops along the boardwalk. iStar is looking to develop the property with AvalonBay Communities.

The developer told the Herald last year that it would pursue economic incentives to make the project commercially viable, but also said it had the financial wherewithal to see the project through. Construction of the buildings, the company said, hinged on a deal with the IDA for a PILOT program. iStar was seeking an estimated $122.6 million property tax exemption, with an additional sales tax exemption of $6 million.

IDA Chairman Joseph Kearney could not be reached for comment as the Herald went to press on Wednesday. He told Newsday that the PILOT would not be approved in its current form, saying that the tax exemption was exorbitant. He also acknowledged the large public opposition to the request.

“This is a very important project for the city of Long Beach,” Kearney said. “It causes this IDA to be careful in its assessment and thorough in every facet of this process.”