Engel Burman proposes shorter PILOT, more affordable units, to gain Long Beach's approval for superblock project

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Garden City developer Engel Burman has proposed significant changes to its plan to build hundreds of condos and apartments on Long Beach's oceanfront in hopes of making it more palatable to the city council.

Dan Deegan, attorney for Engel Burman, said the developer has proposed that the Payment in Lieu of Taxes be cut to 25 years, instead of 30. Additionally, Deegan said, the developer has also proposed that 12 percent of the apartment units be set aside as affordable housing, up from 10 percent.

A public hearing on the Engel Burman project was to be held via zoom Tuesday night and Wednesday afternoon but was abruptly postponed to give the council more time to consider changes in the proposal. Those changes were not spelled out for what is now known as the 'superblock' project,

"We're still working with" the council, Deegan said. "We're hoping to have" the public hearing "as soon as possible."

John McNally, executive assistant to the Long Beach City manager, said Tuesday night, "The city is still doing its analysis". He declined further comment.

The superblock project has been one of the most controversial in Long Beach in decades. The proposal is now before the Nassau County Industrial Development Agency, which postponed the public hearing at the city's request.

Engel Burman, one of Long Island's largest developers, seeks to build 200 condos and 238 apartments, along with a 1,000 space parking garage and some 6,500 square feet of restaurant and retail space. The PILOT was to be $52 million under the original proposal.

Engel Burman has said it will not be able to proceed with the project if the IDA does not approve a PILOT.

A previous developer, iStar, said much the same when it proposed to build on the superblock in 2015. iStar wanted to build 522 apartments with a $129 million tax break. iStar's deal went sour after residents raised objections to it.

A real estate industry source said Engel Burman is likely to walk away from the project if it does not receive approval by the fall. The IDA is not likely to approve the PILOT if the city does not find it acceptable.