A $10.8 million apartment complex planned for a blighted former boatyard in Port Jefferson just got a shot in the arm in the form of tax incentives from the Town of Brookhaven Industrial Development Agency, according to the IDA.
The IDA board approved the incentives for Northwind Group LLC of Hauppauge, operating as Overbay LLC, on Wednesday, Jan. 10, at a public hearing in Port Jeff.
The package calls for payments in lieu of taxes that amount to a fraction of the real property taxes over the course of 15 years, after which the landowners will pay their full taxes.
Overbay will also be exempt from mortgage recording taxes, sales and use taxes in connection with the demolition, construction and equipment.
The total tax benefits amounts to just shy of $1.2 million, according to the IDA’s cost-benefit analysis.
The project includes the now-completed demolition of two buildings that were vacant for more than five years and redevelopment of the 1.84-acre property with a nautically-themed, 54,000-square-foot building containing 52 apartments, according to the IDA.
Aside from the apartments, the plan call for a common area with an exercise and great room, with rents estimated at $1,800 to $2,200 per month.
The work will also result in another village parking lot at the neighboring ball field.
“The developer would not be able to rent these units at these comparably low rents without the IDA’s assistance,” said Frederick Braun III, the IDA chairman.
Northwind is owned by Jim Tsunis, who has constructed homes throughout Brookhaven Town. The company purchased the former Islander Boat Center site in 2013.
The project is expected to result in two full-time jobs and 150 construction jobs over two years.
“This project will bring much-needed rental housing to an area near to Stony Brook University and Port Jefferson’s Mather and St. Charles Hospitals and spur additional spending in the village and the town.” Braun said.
Click here for the full benefits application.