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Brookhaven IDA

The Shoreham power plant on North Country Road provides peak power to the community and payments in lieu of taxes to the Shoreham-Wading River school district. Photo from Jason White

A Brookhaven organization recently saved energy in the most literal sense, and a reliable revenue stream too.

The Town of Brookhaven Industrial Development Agency (IDA) announced Nov. 27 it prevented the shutdown of an electric-generating plant in Shoreham, which provides peak power to the community and is expected to contribute $852,000 in property taxes or payments in lieu of taxes, commonly known as PILOTs, to the Shoreham-Wading River school district this year.

Brookhaven’s business arm has entered into a new, 20-year PILOT agreement with owners of the 90 megawatt, jet-fueled facility located on 10 acres of land on North Country Road, leased by the Long Island Power Authority. The facility’s previous PILOT and power purchase agreement between LIPA and Brookhaven expired this past August after 15 years.

In the proposal for the PILOT, which became the adopted policy when it was approved by the IDA in January 2017, projected gradual benefits range from $1.2 million in its first year to $1.7 million in its 20th.

The partnership began in September 2016 when members of J-Power USA — owners of the facility since 2010 — realized the expired pact would bring about a 33 percent reduction in revenue and a 50 percent reduction in economic benefits. The members were also told by LIPA representatives that the nonprofit would not be involved in negotiating a new PILOT.

“We wanted to see if Brookhaven would be able to offer a new PILOT that would  allow us to remain financially viable and our agreement has removed that big uncertainty,” said Jason White, director of asset management at the J-Power Shoreham branch. “Our facility uses General Electric combustion
turbines and while it doesn’t operate a lot, it’s important to the electric grid for stability purposes. It’s maintained so that it can respond very quickly if it’s called upon.”

White said although there had to be consideration to disassemble the power plant and move off Long Island in the case an agreement couldn’t be reached, it wouldn’t be a simple process, and the facility’s six
employees live close by.

“Our preference all along was to continue to operate the plant site and to continue to be a contributor to the local community,” White said.

By securing the power plant’s place in Shoreham, revenue is boosted for the school district, which relies heavily on it as a source of both energy and property tax revenue.

“I am pleased that we have been able to close on this new agreement with J-Power,” said Frederick Braun, chairman of the IDA. “Had we been unable to keep this plant from moving off Long Island with this new agreement, the Shoreham School District and other taxing jurisdictions would receive no payments at all, resulting in an even larger loss to those taxing jurisdictions.

The school district, which included the finalization of $852,000 in PILOT revenue in its Revised and Lowered Expenditure Budget & Tax Levy in October, approved the agreement in a resolution during a board meeting last Jan. 10.

“Be it resolved that the Board of Education of the Shoreham-Wading River Central School District supports the proposed financial assistance contemplated by the Brookhaven Industrial Development Agency in connection with the J-Power Peaker Plant,” the letter read.

Lisa Mulligan, the IDA’s chief executive officer, said she had been in contact with the district’s board of education since meetings began with J-Power “as they were the most impacted by this.”

“We didn’t want to pursue something if they were not interested in it,” Mulligan said. “But the board wrote to us and told us they were … I think it’s important to bring money into the school district and also provide this power to residents when it’s needed.”

The Overbay apartments are planned for the former Islander Boat Center on West Broadway, above. File photo

The developer of a controversial apartment complex planned for Port Jefferson’s West Broadway may get financial assistance to help build it.

The Town of Brookhaven Industrial Development Agency announced last week that it had accepted an application for consideration from Hauppauge-based Overbay LLC, which has approval from the Port Jefferson Village Planning Board to construct two 35-foot buildings containing 52 rental apartments.

Overbay is owned by North Shore developer Jim Tsunis.

Some residents have spoken against the project, slated for the corner of Brook Road at the former Islander Boat Center property, with concerns about increased traffic and density. Part of their resistance is linked to the fact that another apartment complex called the Residences at Port Jefferson — a 112-unit building — is due to go up next door at the corner of West Broadway and Barnum Avenue, in the place of the former Heritage Inn. TRITEC Real Estate Company in East Setauket is leading that development.

“We don’t want to be urbanized,” resident Phil Griffith said at a public hearing earlier this year. “It is just too much.”

In both projects, neither of which required variances for approval, parking will be contained underneath the apartments and the housing will replace longtime community eyesores at village’s western entry point.

According to the IDA, which aims to boost the economy within Brookhaven Town by assisting businesses in locating or expanding in the area, it will consider Overbay’s application for financial assistance over the coming few months and will hold a public hearing on the matter.

“We’re pleased to consider this application for this project, which will grow the much-needed supply of rental housing near to Stony Brook University and Port Jefferson’s Mather and St. Charles hospitals,” IDA Chairman Fred Braun said in a press release.

The three-story apartment buildings are expected to create two permanent jobs and 150 construction jobs over a two-year period, the IDA said. Rents could range from $1,800 to $2,200.

There is no commercial component to the Overbay project, though there had been commercial space included in previous proposals for the site.

The IDA has already assisted another apartment project in the area this year, the Rail Realty complex along Texaco Avenue in upper Port. That project, dubbed the Hills at Port Jefferson, will include two three-story buildings for a total of 74 rentals — a mixture of studio, one-bedroom and two-bedroom apartments — and underground parking.

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