Tags Posts tagged with "Rail Realty"

Rail Realty

Port Jefferson Village Hall. File photo by Heidi Sutton

By Alex Petroski

The terms of two Port Jefferson Village board trustees and the mayor are up this year and an election awaits them June 20, but in a race devoid of actual opponents, those up for reelection have opposition in the form of difficult, long-range challenges to square off against instead.

Barring a groundswell of support for a potential write-in candidate, incumbent trustees Stanley Loucks and Larry LaPointe, as well as incumbent Mayor Margot Garant know they’ll be serving the community for another two-year term after the election.

Garant will embark on her fifth term in office, while Loucks is set to begin his second and LaPointe his fourth.

Port Jefferson Village residents will see only incumbents on the June 20 ballot, including Margot Garant, left and Stanley Loucks. Photo by Alex Petroski

With long-term issues looming, like large-scale apartment developments and an ongoing legal battle with the Long Island Power Authority, Garant said a focus of her first four terms has been to bolster the village’s sources of revenue in any way possible. Beautification projects funded in large part by state and county grants are underway in upper Port, the area surrounding the Long Island Railroad station, in an effort to get blighted and vacant properties back on the village’s tax roll and attract private investors to build in the area.

“I really wanted to make sure that we …had a beautiful new gateway on the south side of the village that made you feel like you were entering the village of Port Jefferson in upper Port,” Garant said. “I think we owe that to the upper Port community.”

Loucks, who serves as the board’s liaison to the village-owned Port Jefferson Country Club and to the village’s recreation department, said his focus has been on improving and building up each of those village assets in the hopes of attracting members and village participation — another source of village revenue. About $100,000 of tax dollars were invested to improve the golf course’s village-owned grill room, which Loucks said is now an asset for the club.

“This year alone our membership, for the first time since I’ve been involved … is up,” Loucks said during the May 25 interview. “We’ve had a decline in membership over the past 10 years. Approximately 50 members per year on average have left us either through attrition or they’ve passed away or they’ve moved away or gone to other clubs. This year we’re up.”

LaPointe, the deputy mayor, was someone Garant pointed to as a possible successor when she decides to step away.

“I’m happy to see Margot in that chair because I think she’s been a wonderful mayor,” he said in an interview. “I get a lot of personal satisfaction out of this and that’s why I continue to do it.”

All three incumbents surmised that a lack of challengers could serve as proof residents are happy with the job the board is doing. Garant explained that the platform of the Unity Party, the name the three have attributed to their joint ticket, is to do what’s best for the community. The result has been a board that has a positive and productive rapport, according to Garant.

“We may not always agree, but we’ll always be able to listen. We’ll try and compromise, but largely we’re not on opposite pages,” she said. “I think if you put your self-interests aside and say, ‘What’s in the best interest of the village?’ we’ll all get there together. I think that that’s how
we survived.”

Trustee Bruce Miller, who Garant said tends to have differing opinions from the rest of the board at times, said in a phone interview he wished his colleagues faced some opposition because it would be a chance for different viewpoints from the community to be brought to the forefront.

“There are some ideas that I have, but there’s nobody to bring these ideas forth,” he said. “I’m not completely thrilled, but at some level it does reflect some contentment in what’s going on.”

He reiterated that the working relationship within the board is overwhelmingly positive.

Bruce D’Abramo, the fifth member of the board, said in an email he fully supports Garant, Loucks and LaPointe in their reelection bids.

LaPointe expressed a similar sentiment regarding varying viewpoints from residents being heard and represented.

“I think in a way it’s a disadvantage because when we run with an opponent, which we’ve done several times, it forces us to take the time to go and knock on doors, and the last time we found that very, very fruitful,” he said. “I want to talk to some people other than the people who typically come to board meetings.”

Each of the three candidates expressed a desire to see solutions to some of the more difficult problems through to the end before stepping aside.

A lawsuit is currently pending that includes the village and the Port Jefferson School District as plaintiffs against LIPA, associated with the power authority’s desire to pay less in property taxes at sites like the Port Jefferson power plant because of its condition and infrequent use. The village and district receive substantial amounts of revenue from property taxes because of the presence of the plant.

Port Jefferson Village residents will see only incumbents on the June 20 ballot, including Larry Lapointe. Photo by Alex Petroski

Garant said in an interview in her office May 25 the village will continue to build up its unencumbered fund balance as a savings to use in the event a settlement is reached between the two parties that results in a loss of revenue for the village. The plan is to reach an agreement with LIPA with a gradual reduction in their property taxes, should the village’s first choice of repowering the plant not happen.

In addition, three apartment complexes in the village are at various stages of completion, which will in total result in nearly 300 new living spaces for new village residents. The expansion is expected to stimulate local businesses, but could wreak havoc on the school district should renters with school-aged children flood the homes, with little gain in property tax revenue because of financial assistance agreements reached between the property developers and the Suffolk County Industrial Development Agency.

The village will receive PILOTs, or payments in lieu of taxes, for 15 years instead of actual property tax revenue thanks to the agreements.

For example, The Shipyard apartment complex being constructed by TRITEC Development Group, across from Port Jefferson Harbor on the corner of East Broadway and Barnum Avenue, would net the village about $49,000 in property tax revenue in 2025, according to Garant. Thanks to the agreement, the PILOT payments in that year will amount to about $3,000. Garant estimated the losses for the village to exceed a half a million dollars by 2030. She said she and the board opposed the agreement between the Suffolk IDA and TRITEC. However, building permits and other fees written into the village code will serve to offset a small portion of those costs, Garant added.

Increased traffic and the sheer size of the projects have also caused angst among some longtime village residents.

The second phase of construction is underway at the Texaco Avenue apartments. Photo by Elana Glowatz

If you build it, they will come.

Port Jefferson developer Rail Realty LLC proved that old adage when Rob Gitto, from its parent company The Gitto Group, confirmed its uptown apartment project is already at full rental capacity — a month before it is even slated to open.

Gitto said the 38 units in the first completed apartment building has been completely pre-leased and there is a waiting list for the second building, which will add another approximately 36 units when completed next year.

Most of those future tenants are affiliated with Stony Brook University in some way, Gitto said, whether they are graduate students, medical residents, professors, nurses, doctors or other staff. There are also a few people from John T. Mather Memorial Hospital’s new residency program.

The first phase of the Texaco Avenue apartments is complete. Photo by Elana Glowatz
The first phase of the Texaco Avenue apartments is complete. Photo by Elana Glowatz

Officials broke ground on the much-anticipated project, dubbed The Hills at Port Jefferson, in May 2015, expressing hope that the first new development in upper Port would spur revitalization efforts in the troubled area.

Village leaders have been trying to enhance the uptown’s Main Street corridor, between North Country/Sheep Pasture Road and the Long Island Rail Road tracks, with the goal of improving quality of life, making it more pedestrian-friendly and attracting developers and visitors.

At the groundbreaking last year, Mayor Margot Garant said the 74 Texaco Avenue apartments would be “so important” to the revitalization.

Gitto thinks it’s already propelled other improvements. He said Monday that he has seen one nearby business making improvements to an existing establishment and two others sign leases to bring in new ones.

“We wanted to see the area revitalized and we’re seeing it,” he said, adding about the rest of the uptown area, “We definitely hope they follow suit.”

There are other community benefits attached: Under the conditions of the project’s approval, Rail Realty has to make improvements to a pocket park on the west side of Texaco that currently has a jungle gym, swings and a basketball hoop, and improve traffic flow in the area by redesigning the intersection of Main Street and Sheep Pasture Road.

Construction has gone in phases. Last year, Rail Realty knocked down vacant homes and buildings along the east side of Texaco Avenue between Sheep Pasture Road and Linden Place to make way for the two three-story buildings — which will have a mix of studio, one-bedroom and two-bedroom apartments — and began working on the northern building. That was completed recently, with the new apartments visible from some angles on Main Street, a block over. The developer got started right on the foundation of the second building, to the south.

The first phase of the Texaco Avenue apartments is complete. Photo by Elana Glowatz
The first phase of the Texaco Avenue apartments is complete. Photo by Elana Glowatz

Garant announced the milestone at a village board of trustees meeting on June 6, saying people would start moving into the first apartment building in mid-July.

Resident parking is underground, a noteworthy element for a small village in which having more cars than parking spaces has long been an issue. And toward the end of the second ongoing apartment construction phase, the developers will bring down a building on the south side of the Texaco Avenue and Linden Place intersection, the Stony Brook Electric Inc. building, to make room for additional above-ground parking.

That’s also when the park improvements will take place, Gitto said. Plans are still developing, but they might include landscaping, such as flowers and necessary irrigation, and taking down an unused shed there.

For The Gitto Group — which has built up other parts of Port Jefferson, including an office building, the CVS and the Barnum House apartments on Main Street — things are falling into place faster than anticipated. Rob Gitto said the project was done in phases because the developers weren’t sure how well the first set of apartments would be received and how quickly they would be leased.

“We knew it would be successful but we didn’t know it would sell that quickly.”

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.

Officials broke ground Monday morning on a housing complex many hope will spur redevelopment in uptown Port Jefferson.

After four years of plans and approvals, developer Rail Realty LLC can get started on demolishing homes and buildings along Texaco Avenue to make way for 74 rental apartments, a mix of studio, one-bedroom and two-bedroom. The Hills at Port Jefferson apartments will be constructed as two three-story buildings on several parcels along that street: One building will take the place of two vacant houses and the former Port Jeff Auto Spa car wash on the north half of Texaco, close to Sheep Pasture Road; while the other will be built in what is now a grassy field at the intersection with Linden Place. Resident parking will be underground, with a final parcel on the south side of Texaco and Linden, currently holding Stony Brook Electric Inc., to be used for additional parking.

Ryan Gitto arrives at a groundbreaking ceremony in upper Port Jefferson prepared to work. Photo by Elana Glowatz
Ryan Gitto arrives at a groundbreaking ceremony in upper Port Jefferson prepared to work. Photo by Elana Glowatz

“This is the beginning of a renaissance and a jumpstart to upper Port Jefferson,” Rail Realty principal Tony Gitto said at the groundbreaking ceremony, after digging into the earth at the grassy field.

The shovel work was followed up on the car wash property next door, where Mayor Margot Garant climbed into an excavator and took the first crack at taking apart the building there. Concrete crunched as she closed the vehicle’s claws over a corner of roof and ripped it away from the rest of the building.

“I can get used to this,” she shouted from the operator seat.

Garant said that the apartment project will be “so important” to upper Port revitalization efforts.

The village has been working to enhance that troubled area around Main Street between North Country Road/Sheep Pasture Road and the Long Island Rail Road tracks. An entire section of the village’s draft comprehensive plan is devoted to upper Port, with recommendations geared toward improving quality of life, making it more pedestrian-friendly and attracting developers and visitors.

Rail Realty got final village approval on its project last year. Under the conditions of that approval, the developer will make improvements to a pocket park near the apartments and improve traffic flow in the area by redesigning the intersection of Main Street and Sheep Pasture Road.

Tony Gitto breaks ground at the site of his upcoming apartment complex. Photo by Elana Glowatz
Tony Gitto breaks ground at the site of his upcoming apartment complex. Photo by Elana Glowatz

The housing complex will be constructed in phases, with the first phase being the northern apartment building, the second being the other building, and the third being the parking area across Linden Place.

The Town of Brookhaven Industrial Development Agency gave financial assistance to Rail Realty on the project, including sales tax exemptions on construction items, a mortgage tax exemption and a 10-year property tax abatement through which the owner will pay taxes on roughly the current value of the site, as opposed to the increased value of the property once work is complete.

The IDA aims to boost the economy within Brookhaven Town by assisting businesses in locating or expanding in the area.

IDA Chairman Fred Braun said Monday, “Cleaning up a semi-blighted area is the first step,” and Long Island needs rentals both in the area of Stony Brook University and elsewhere.