Jericho, NY The Nassau County Industrial Development Agency (NCIDA) has approved a transaction for JP Optionee LLC to develop, construct and operate an 113,815 s/f hotel and conference center located on 5.88 acres of underutilized land near the intersection of NYS Route 25 and the Long Island Expressway. The project represents a more than $56 million investment into the community and is set to create 52 full-time equivalent (FTE) jobs, as well as an estimated 231 direct and indirect jobs during the project’s construction phase.
“The hospitality industry took a big hit as a result of the COVID-19 pandemic, so this project represents a major confidence boost in the sector’s rebound as we enter 2022,” said NCIDA chairman Richard Kessel. “The hotel will also include a conference center bringing a much-needed amenity for the Jericho Business District and ensures that there is a new, attractive facility where entities, near and far, can gather, spend money and generate new economic activity.”
The project area currently serves as a largely vacant parking lot so the construction of the hotel and conference center, even with NCIDA assistance, is set to bring significant increases in tax revenue to the local taxing jurisdictions. Over the course of the 22-year PILOT, the project is expected to generate nearly $14.9 million in taxes. Without the project, the property would only bring in approximately $9.2 million in taxes over that same time span.
“Without the assistance of the Nassau County IDA, this project would not be economically feasible,” said Paul Amoruso, managing partner of Oxford Hospitality USA, LLC., a developer of the Jericho Plaza hotel project. “We are thankful for the NCIDA’s approval of this project that will provide new luxury lifestyle hotel accommodations, a spa, top-tier conference facilities, fitness center, indoor pool, upscale restaurant, new jobs and numerous additional economic benefits for Nassau County. We are getting the project underway and creating a welcomed asset for the area.”
With any investment of this magnitude, there are many additional economic benefits that stem from it. The total economic benefit as result of the construction phase and permanent jobs over the course of the PILOT term is expected to be more than $86.4 million. Similarly, the construction and operation of the hotel and conference center will provide taxing jurisdictions a net tax increase of more than $15.5 million.
“Hotels and conference centers are major economic engines as they bring in both residents and non-residents that collectively generate a significant amount of spending for surrounding small businesses,” said Nassau County IDA CEO Harry Coghlan. “When you find projects poised for success, such as this one, the short-term tax benefits are quickly eclipsed by the long-term financial gain. Without the NCIDA’s assistance, a project like this may never get off the ground and our residents would ultimately be the ones to miss out on the opportunities to be created.”