iStar to seek new tax break for Superblock

City to hold public forum to discuss developer’s latest proposal

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Nearly a year after the Nassau County Industrial Development Agency voted 3-2 to deny iStar Financial’s request for $109 million in tax breaks to build two oceanfront towers on the Superblock, city officials say that the developer is set to file another request with the IDA for a tax abatement.

On its website on Wednesday, the city said it learned that iStar, a Manhattan-based developer that owns the Superblock, will soon submit "a third and final application for tax abatements."

The Superblock has been vacant for 30 years, and the $336 million project envisions twin 15-story luxury apartment buildings with 522 units overlooking the boardwalk between Long Beach and Riverside boulevards. iStar had sought a hefty 20-year payment in lieu of taxes, or PILOT, agreement, claiming it would not build without it.

The IDA’s rejection of the proposal last July came after a two-year process that included two heated public hearings in Long Beach, where many residents expressed vehement opposition to the height and density of the project, and to the proposed tax breaks. The IDA also rejected iStar’s application for a $129 million PILOT over 25 years in 2015.

iStar officials could not immediately be reached for comment. According to Newsday, Nassau IDA officials said no application had yet been submitted.

City officials declined to offer more details, and said that the Nassau IDA “has the exclusive authority to grant or deny the application.” The city will hold a forum on May 9 at City Hall at 6:30 p.m. to update residents.

“It is unclear whether the IDA needs to hold a public meeting in connection with this new application,” the city said in a statement. “Therefore, the city feels it is imperative that the residents be provided with the details of this application, and an analysis of its short-term and long-range effects on the city. Residents will also have an opportunity to ask questions regarding this topic of critical concern to the community.

Sources say the terms of the new tax abatement request is lower than the previous 20-year deal the developer was seeking.

“iStar has indicated that this is it, and have dropped the PILOT proposal significantly,” said one source who declined to be identified.