Inwood, NY Fred Parola, CEO of the Town of Hempstead Industrial Development Agency (IDA) has approved a package of economic development incentives for a proposed warehouse that will boost revenues for taxing jurisdictions, especially the Lawrence School District.
The IDA meeting granted approval to the benefits that will assist CenterPoint Inwood LLC, an affiliate of CenterPoint Properties Trust, which is owned jointly by the California Public Employees’ Retirement System (CALPERS), the nation’s largest U.S. public pension fund, and Chicago-based LaSalle Investment Management.
CenterPoint plans to construct a 138,245 s/f, two-story high-ceiling warehouse on 8.7 acres of leased vacant land that formerly housed a sewage-treatment plant at 65 Rason Rd., close to the Nassau Expressway and less than 2 miles for JFK International Airport, which likely would provide economic activity. The developer has not signed any tenant for the warehouse but has said it has held preliminary talks with several prospective users.
The $84 million project, which could generate 75 construction jobs and at least 25 full-time permanent jobs, has town approvals. Construction is expected to begin in the 2023 second quarter and be completed within 24 months. It received a 15-year PILOT and sales-tax exemption.
The project on a site that has been stagnant for decades, will result in millions of new revenues for taxing jurisdictions.
Currently, taxes on the site are $209,957. Over the 15-year life of the PILOT, the project will pay taxing jurisdictions $10.5 million, or $700,658 annually. It also will generate $11,142 in annual sales taxes.
The Lawrence School District will receive PILOT payments of $86,222 in each of the first three years of the PILOT, which then will rise gradually over the life of the PILOT to $492, 796, averaging $287,735 annually. For the entire term of the PILOT, the school district will have received a total of $4.3 million.
“This project has the potential to clean up a long-blighted property and boost economic activity in the town by providing a modern warehouse building in an area where such space is short supply,” said Parola. “It also will provide our taxing jurisdictions will much-needed additional revenues.
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