The stakes for the future of Port Jefferson are very high. It seems we have a real election this June in Port Jefferson, so we need a real contest of ideas.
I have iterated many issues for this campaign in The Port Times Record. More are specified here. We know Deputy Mayor Kathianne Snaden and trustee Stan Loucks will have much support from the development class. Will trustee Lauren Sheprow and trustee candidate Bob Juliano represent the residents?
Issues
Years of hard work and research done by our Port Jefferson residents for the master plan committee have been discarded in favor of developers’ plans for future intensive — and not always attractive — development.
I believe our current leadership has permitted blight to be exploited in order to extract concessions for larger zoning — zoning not recommended by our residents’ committee.
The Industrial Development Agency of Brookhaven Town is giving away our tax base. What is “industrial” about apartment developments?
As a former school board member and president, I worked productively on repowering and to improve our tax base for 12 years, then leading this fight on our village board of trustees for eight years after that.
I speak regularly with National Grid leaders and have addressed our issues and advocated with LIPA’s CEO, Thomas Falcone. Who will lead this effort, which has such a profound impact on our tax base? What is their network to do this?
I worked on our environmental issues for 30 years. The Conservation Advisory Committee needs to be made a board again. The Architectural Review Committee should be made a board.
LIRR
The ride from Port Jeff only gets worse. All our elected leaders want “a better ride.” But who will “herd the cats,” so to speak? We need leadership to galvanize and focus around these efforts.
Looking at recent events, I fear the Long Island Rail Road will eliminate the Port Jefferson Branch line completely. I have worked to secure better service and clean energy service. We need to coordinate our efforts with our neighbors in Port Jefferson Station/Terryville.
Finance
Tax revenue is going down, with a significant chance of plummeting. Debt will be going way up. Taxes are going up. There are options for solar power that can recoup some of this revenue.
I have the network to implement these strategies. So far, my efforts to implement these strategies have not been ignored — they have been rejected. Cleaner air, more revenue? We cannot let petty politics continue to thwart residents’ interests.
For a long time, merchants have advocated parking garages in Port Jefferson. Residents do not want Port Jefferson to look like Queens. I have proposed underground parking garages. Yes, this can be done. The Dutch have done this, creating parks to enhance their country and eliminating flooding at a bargain.
How to pay for this? Claim our share of town, county, state and federal funds for open-space preservation in the form of open-space creation — “parks above parking.” This makes our village more attractive to visitors and prospective residents.
Claim infrastructure-hardening funding. Remember what the Dutch have done. Lease newly created parkland to restaurants for alfresco dining. Other parties may see value in this option as well. Let’s not forget parking fees.
Merchants pay the village PILOPS — payments in lieu of parking spots. But there could be actual parking spots to purchase by investing in Port Jefferson.
Condominiumize parking slots. Merchants and investors could purchase parking spots in prime locations for their exclusive use or derive revenue and tax deductions.
Our downtown businesses, apartments and fire department suffer from toxic intrusion when they flood. Investing in health is always a wise decision.
If you want a better future, we need to ask hard questions of our candidates.
Bruce Miller is a former Port Jefferson Village trustee
The street-level view of the Port Jefferson Crossing apartments, a 45-unit affordable housing complex opening within weeks. Photo by Raymond Janis
The transformation of Upper Port is happening in real time after years of well-documented social issues and underinvestment.
In the coming weeks, the village will complete two major initiatives. Station Street will soon open to traffic, and the Port Jefferson Crossing apartments, a 45-unit affordable housing complex developed by Conifer Realty, will launch.
As these projects open, further planning is in full swing. Conifer is working with the Village of Port Jefferson Planning Board on a second development located at the Main and Perry streets intersection. Meanwhile, the Board of Trustees is actively pursuing a vision for the proposed Six Acre Park along Highlands Boulevard.
In an exclusive interview with Mayor Margot Garant, she summarized the activities. “I think we’ve made great progress,” she said. “I think it’s a great start to what will continue to make [Upper Port] a safe and welcome place.”
Completing these projects marks the next chapter in a multiyear village undertaking to revitalize its uptown. Yet as the area undergoes its metamorphosis, a broader conversation is emerging.
Community revitalization in context
‘
A good plan is the genesis of effort and conversation between the constituents, elected officials, economists, environmentalists, civic organizations, resident groups, business owners and, yes, real estate developers.’
— Richard Murdocco
Richard Murdocco is an adjunct professor in the Department of Political Science at Stony Brook University. His writings focus on land use, economic development and environmental policies on Long Island. In an interview, Murdocco detailed the regional and historical context surrounding redevelopment efforts in Port Jeff.
Downtown revitalization on Long Island dates back at least six decades, said Murdocco, when communities started tackling the effects of suburbanization and population boom.
“Downtown revitalization is not anything new,” Murdocco said. “The first comprehensive plans were drafted in the early ’60s by the Long Island Regional Planning Board and Dr. Lee Koppelman. Those identified key downtown areas where to focus growth, and the whole point of the plans was to mitigate the ever-ongoing suburban sprawl that western Suffolk County, especially, was getting a taste of at that time.”
With the eastward expansion of the Northern State Parkway and the construction of the Long Island Expressway, downtown areas soon became targets for growth. Ideally, this growth consisted of additional multifamily housing options, expanded retail sectors and developing neighborhoods near train stations.
Although development plans today are often pitched as novel or innovative, Murdocco contends that the general framework underlying revitalization has been replicated across generations.
“These concepts are as old as city building,” he said. “It may be new for Long Island, but it’s not new in practice.”
The view of Port Jefferson train station from the Port Jefferson Crossing apartments. Photo courtesy Margot Garant
The Patchogue model
‘For an area to be successful, there has to be people and there has to be a reason for people to be there.’
— Paul Pontieri
Today, proponents often cite the Village of Patchogue as a cornerstone of community revitalization on Long Island. Spearheading these efforts is Paul Pontieri, who has served as the village’s mayor since 2004.
In an interview, Pontieri detailed his approach to community building. For him, areas that thrive are those with people.
“For an area to be successful, there has to be people and there has to be a reason for people to be there,” he said. “Businesses go where people are.”
Another priority for Pontieri was attracting young families into Patchogue. “We have a lot of young families,” he said. “That happened because we provided the kind of housing they can afford.”
Apartments were central for creating affordable housing options, according to Pontieri. While existing rents may appear overpriced to some, he believes these rent payments are preferable to the mandatory down payments when taking out a mortgage.
“Right now, if you have to put 20% down on a $500,000 home, you’re telling me that a 22- or 23-year-old that just got married has $100,000 to give on a down payment — it’s not going to happen, and that’s the reality,” he said. “You have to have the apartments because they will come into the apartments and begin to save their money, even though the rents on those apartments seem exorbitant.”
Pontieri holds that Long Island communities today face the challenge of drawing and keeping youth. According to him, young people will inevitably move away from unaffordable areas.
“You have a choice: You can sit there in your house — you and your wife at 75 years old — and your kids move someplace else because they can’t afford to live in your village,” he said, “Or you make your community user-friendly, kid-friendly, young-family friendly.”
Murdocco said Patchogue had been held up as the standard-bearer for community rejuvenation because Pontieri more or less carried his vision through to completion. Though revitalization brought unintended consequences for Patchogue, such as magnifying a “parking problem that was enhanced and amplified by growth,” Murdocco said the example is generally regarded favorably.
“Overall, it’s lauded as a model because they did it,” the adjunct professor said. “For all intents and purposes, the area is thriving relative to what it was.”
Differentiating Upper Port
‘Our little footprint can’t really hold as much as Patchogue.’
— Margot Garant
While Garant acknowledges the utility of Pontieri’s method for Patchogue, she points out some key distinctions unique to Upper Port.
Like Pontieri, she holds that the neighborhood’s success depends on the people it can attract. “I believe that new residents and the new opportunity will drive an economic base and new economic success,” she said. Though arriving at this new resident base, Garant is employing a different approach.
For one, the two villages differ widely concerning their respective topographies. When organizing a plan, Garant said Port Jefferson must operate within the confines of limited space, further constrained by the existing built environment.
“Patchogue is flat, and it’s a grid system, so you can spread out there and have larger parcels that connect to the heart of your village,” she said. “In Port Jefferson, we’re in a bowl. We’re surrounded very much by residential [zones] on both sides of Main, so I see us as able to grow a bit differently.”
Tying into the issue of topography is the matter of density. Garant maintains Pontieri had greater flexibility, enabling vertical and horizontal expansion to accommodate a growing population. “Our little footprint can’t really hold as much as Patchogue,” Garant said.
Applying the Patchogue model to Upper Port is further complicated by the historical and cultural differences between the two villages. Garant stated she intends to bring a family oriented culture to Upper Port. In contrast, Patchogue attracts a more robust nightlife scene accentuating its bar and restaurant culture.
“I just have a different philosophy when trying to revitalize the neighborhood,” Garant said. “I think Patchogue became known for the young, jet-setting community, the Alive After Five [street fair] bringing people to Main Street with a different sort of culture in mind. We’re looking at making things family oriented and not so much focused on bars and restaurants.”
In an email statement, trustee Lauren Sheprow, who emphasized revitalizing Upper Port as part of her campaign earlier this year, remarked that she was impressed by the ongoing progress. She remains committed to following the guidelines of the Port Jefferson 2030 Comprehensive Plan, published in 2014.
Referring to the master plan, she said, “It does appear to be guiding the progress we are seeing take shape uptown. It would be interesting to take a holistic look at the plan to see how far we have progressed through its recommendations, and if the plan maintains its relevance in current times where zoning is concerned, and how we might be looking at the geography east of Main Street.”
Six Acre Park
‘The Six Acre Park is something that I see as a crucial element to balancing out the densification of housing up there.’
— Rebecca Kassay
Along with plans for new apartments, Garant said the proposed Six Acre Park would be integral to the overall health of Upper Port. Through the Six Acre Park Committee, plans for this last sliver of open space in the area are in high gear. [See story, “Six Acre Park Committee presents its vision.”]
Trustee Rebecca Kassay is the trustee liaison to the committee. She refers to the parkland as necessary for supporting new residents moving into the village.
“As far as Upper Port, I am hoping and doing what I can to plan for a vibrant, balanced community up there,” she said. “The Six Acre Park is something that I see as a crucial element to balancing out the densification of housing up there.”
Plans are ongoing to convert the remaining six acres of open space along Highlands Boulevard into a tranquil, arboretum-like setting. Photo courtesy Rebecca Kasay, taken from Google Maps Street View
With more density, Kassay foresees Six Acre Park as an outlet for the rising population of Upper Port. “Everyone needs a place to step out from a suburban or more urban-like setting and breathe fresh air and connect to nature,” she said. “The vision for Six Acre Park is to allow folks to do just that.”
In recent public meetings, a debate has arisen over a possible difference of opinion between the village board and the planning board over active-use space at Six Acre Park. [See story, “PJ village board … addresses Six Acre Park.”]
Garant said the Board of Trustees has yet to receive an official opinion on behalf of the Planning Board. Still, the mayor does not see sufficient reason to modify the plan.
“We’re talking about creating an arboretum-like park used for educational purposes,” she said. “At this point in time, we don’t have enough land. The uptown population is welcome to use the rest of the parkland throughout this village.” Garant added, “But we are extremely mindful that when the new residents come to live uptown and they bring their needs, there’s a lot more that’s going to happen uptown and a lot more opportunity for us to make adjustments.”
Identifying the public good
‘In my opinion, property owners have allowed their buildings to deteriorate so that they would be able to sell the properties to — in this case — subsidized developers.’
— Bruce Miller
New development, in large part, is made possible by the Brookhaven Industrial Development Agency, which can offer tax exemptions to spur economic growth. Former village trustee Bruce Miller has been among the critics of Upper Port redevelopment, taking issue with these IDA subsidies.
“It’s an open secret that the properties were very poorly maintained up there,” Miller said. “In my opinion, property owners have allowed their buildings to deteriorate so that they would be able to sell the properties to — in this case — subsidized developers.”
In Miller’s assessment, while the projects are taxpayer supported, their community benefit is outweighed by the cost to the general fund.
“The buildings that are being built are paying very little in the way of taxes,” Miller said. “At 10 years it ramps up, but even at 15 years there’s not much tax they’re paying on them.”
Responding to this critique, Lisa Mulligan, CEO of Brookhaven IDA, released the following statement by email: “In accordance with our mission, the Brookhaven IDA is committed to improving the quality of life for Brookhaven residents, through fostering economic growth, creating jobs and employment opportunities, and increasing the town’s commercial tax base. The revitalization of uptown Port Jefferson is critical to the long-term economic well-being of the region, and housing is one key component of this.”
Town of Brookhaven Councilmember Jonathan Kornreich (D-Stony Brook), who represents Port Jefferson on the Town Council, also took issue with Miller’s claim. For him, the purpose of IDA subsidies is to identify benefits to the community and advance the public good.
“So often, there is no public benefit,” he said. “If it’s the will of Port Jefferson Village to revitalize an area that has struggled to attract investment for many years, that may be an appropriate use of IDA funding.”
However, Kornreich also acknowledged that these tax incentives come at a cost for ordinary taxpayers. For this reason, it remains crucial that the IDA has a firm grasp of the public good and advances that end alone.
“When this unelected body gives these benefits to a developer, it’s a tax increase on everyone within that taxing district … they are increasing your taxes,” the councilmember said. “When you pay those increased taxes, what you’re doing is supporting this vision of a public good.” In instances where the IDA functions without a view of the public good, he added, “It’s a huge betrayal.”
Garant suggested that ridding Upper Port of vacant lots constituted a public good in itself. While IDA benefits may mean short-term sacrifices for village residents, the tax exemptions will soon expire and the village will collect its usual rates.
“For us in the short term, we might be making a little bit of a sacrifice, but I can tell you right now what I’m making on the payment in lieu of taxes program is more than what I was getting on those buildings when they were blighted,” she said. “Six, seven, eight years down the road, when we’re at the end of those PILOT agreements, we’re going to be getting a sizable tax contribution from these properties.” She added, “I was looking down a 10- to 15-year road for the Village of Port Jefferson.”
Murdocco foresees opportunities for continued discussions within the village. According to him, community development done right is highly collaborative, uniting the various stakeholders around a common aim.
“A good plan is the genesis of effort and conversation between the constituents, elected officials, economists, environmentalists, civic organizations, resident groups, business owners and, yes, real estate developers,” he said. “I know for a fact that in Upper Port Jefferson, a lot of that did happen.”
The SBU adjunct professor added, “In terms of defining a public benefit, it depends on what the community wants. Do they want economic growth for an underutilized area? Do they want environmental protection? Do they want health and safety? That all depends on the people who live there.”
A rendering of the planned Heatherwood Golf & Villas in South Setauket. Rendering from Town of Brookhaven Planning Board
The proposed apartment complex project on the property of the Heatherwood Golf Course in South Setauket will not receive a tax benefits package after the Brookhaven Industrial Agency rejected a proposal that would cut property taxes on the land by $3.76 million over 13 years at a hearing Aug. 21.
Also included would be $2,854,000 in sales tax exemptions and $420,000 in mortgage recording tax exemptions. In total the developers would see savings of more than $7 million.
The decision proved to be a small victory for some area residents who have been against the project since its inception. They were concerned that the proposed tax breaks could negatively affect local school districts and development would increase traffic congestion at the intersection of Route 347 and Arrowhead Lane.
Representatives for Heatherwood said at the meeting that they could not move forward with development without the tax breaks.
Salvatore Pitti, president of the Port Jefferson Station-Terryville Civic Association, said the notion of developers abandoning the project was wishful thinking.
“We never wanted it from the beginning,” he said. “The entire community has been against it.”
The proposed project dates back to 2014 when it was brought up to the Town of Brookhaven zoning board and was approved of a crucial zone change that allowed for apartments on the property. As a part of the approval, the town board required the property owner to donate 40 acres of land to the Manorville Farm Protection Area, remove a billboard at the golf course and construct a sidewalk on the east side of Arrowhead Lane.
“The zone changes already occurred,” Pitti said. “We’ve already accepted the fact that it will be developed [eventually].
“Why do you need tax breaks if you don’t have the money to build it? It came off as them being more greedy.”
–Salvatore Pitti
In 2018, the Planning Board approved the proposed plans for the company to build on nearly 26 acres of its more than 70-acre property. The project, dubbed the Heatherwood Golf & Villas, will be a 200-unit senior apartment complex catering to individuals 55 and over.
The planned project would reduce the 18-hole golf course to nine holes to allow developers to build the apartments and would supposedly bring more revenue to the golf course.
IDA members questioned the reason Heatherwood needed tax breaks to move forward with the project. Heatherwood said that the project would create six permanent full-time jobs, though IDA members said it wasn’t enough jobs to grant it the benefits package.
Herb Mones, chair of the Three Village Civic Association land use committee, was shocked when he first heard that Heatherwood was looking for tax breaks.
“I was like ‘You gotta be kidding me,’” Mones said. “It wasn’t enough that they got the zoning approval, but now they need tax breaks — at some point enough is enough. It is corporate greed.”
Mones argued that the project would forever affect the surrounding communities.
“It adds to the over development, we lose open space and a golf course,” he said. “…We are happy the IDA turned them down.”
Mones along with Pitti wasn’t buying that the project would be abandoned if Heatherwood didn’t receive the tax benefits package.
“There is no possibility that they will not develop that land after they got the zone change, they are going ahead with the project,” Mones said. “It will yield a gold mine for the corporation. We believe this will bring no benefits to the community.”
Despite, the IDA rejecting the package, Pitti said he wouldn’t be surprised if Heatherwood broke ground on the project in the next few months.
A representative from Heatherwood did not return messages requesting a phone interview by press time.
Rendering of the Brockport apartment complex. Construction is expected to be complete in December 2020. Photo from the Gitto Group
As one of the latest apartment complex project in Port Jefferson inches closer to construction, another apartment complex has received tax breaks from an IDA.
Last month, the Brookhaven Industrial Development Agency approved an economic benefits package, which includes a 10-year payment in lieu of taxes, to the apartment complex expected to be built out of the current Cappy’s Carpets building, to be known as The Brockport. Construction is expected to begin this fall.
The site plan calls for a three-story structure with a total of 44 one-bedroom units and two two-bedroom units. The $16.5 million project headed by Port Jefferson-based The Gitto Group, will have stores, office spaces and a restaurant on the first floor and apartments on the other two floors.
The current taxes on the property, which was once occupied by Cappy’s Carpets and a boat storage lot are approximately $35,000 annually, according to Rob Gitto of The Gitto Group. The 10-year PILOT would see taxes increasing to $99,183 in the first year and then gradually escalate until the last year when it reaches $213,360. According to Gitto, the retail portion of the
property will be fully assessed as it is not part of the IDA program.
“We are planning to commence the construction on the site within the next 30 days and we anticipate to be completed with the project by December 2020 — all of this is dependent on what type of winter we have,” Gitto said.
Paul Casciano, Port Jeff Superintendent of Schools, made it clear he and the district are not against the planned project.
“We just had concerns and questions,” the superintendent said. “As a district we have to do our due diligence to see if there is any potential impacts — this is what we do. It doesn’t mean we are against the project.”
As part of the response to the SEQR referral for the project in November 2018, the district sent in a letter outlining their questions and concerns.
With the construction site close to the Port Jefferson high school, the district had concerns over access to the driveway on Barnum Avenue. Also, due to the close proximity to the site there were concerns of potential dust, fumes and noise from the construction.
Though questions were raised about how many students this particular apartment complex will bring, Casciano said it’s routine to ask how new developments will impact the district. Other complexes in the village have offered more two-bedroom options. The Shipyard complex has 18 and The Hills has seven. The upcoming complex on Main Street will have two.
The district sent the same letter for the July 17 Brookhaven IDA public hearing.
Casciano reiterated that they support the project, adding the information is important for them to know for a variety of things including future planning of the district.
“I think this project will benefit us [the Port Jeff community],” he said.
Responding to concerns from the community about the impact of construction on the area, Gitto said they do not anticipate any major issues relating to the construction of the complex.
“The project does not include any road improvements that would require us to close down the road,” he said. “There may be some minor work that needs to be completed by the utility companies, but that would really be it. We are the owners of the adjacent office building to the north [414 Main St.] and the mixed-use property located to the south of the subject property [464 Main St./50 Barnum Ave.] which will enable us to stage any construction equipment or materials without impacting the surrounding areas. The early stages of the project will include typical noise associated with a construction project.”
The development group, which also owns and manages The Hills and the Barnum House apartments, said Brockport will have a minimal impact to the student population of local school districts.
“The two properties [the Hills and Barnum House] combined have 104 apartments [one- and two-bedroom units] and our records are showing that we only have two school-aged children within these 104 units,” Gitto said. “The majority of our units are one-bedroom apartments which typically do not work well with families with school age children.”
Once construction on The Brockport is completed, Gitto said they are estimating the one-bedroom units to be around $2,650 per month and the two-bedroom units to be $3,800 per month. The building will be more than 65,000 square feet and have approximately 2,700 square feet of retail space.
At the Long Island Power Authority’s July 24 board meeting, Larry Kelly, a trial attorney, described at a public comment session how LIPA in 2006 and 2007 instituted what he called “the largest tax fraud” he’s seen in his 35 years as a lawyer, according to Huntington Town councilman, Eugene Cook (R).
Cook has independently asked New York State’s Public Service Commission Chairman John Rhodes in a letter dated Aug. 6 to review and “forcibly address” the issues.
According to Cook, Kelly alleged that LIPA used the tax system to extend tax exemptions and reductions to Caithness power plant, which was awarded a contract to build a new 350-megawatt power plant in Yaphank, and then used those low taxes to argue in court that National Grid’s four aging power plants on Long Island were overassessed.
“I also request the PSC review LIPA’s ‘unclean hands’ in the Northport filings, and the impact that should have on LIPA’s continued operations,” Cook’s four-page letter concluded. The letter was sent on a town letterhead, but was not signed by other town board members, the supervisor or the town attorney.
Councilman Eugene Cook
The term “unclean hands” is a legal defense which essentially references a legal doctrine that states a plaintiff is unable to pursue tax equity through the courts if the plaintiff has acted unethically in relation to the subject of its complaint.
The allegations are surfacing just weeks after closing arguments were presented July 30 in LIPA’s tax certiorari case with the Town of Huntington for the year 2014. It is unclear how the allegation could potentially impact the outcome of the case as post-trial deliberations continue. The unclean hands defense was not part of the town’s defense, according to the Town Attorney Nick Ciappetta, who offered no public comment on the allegations.
Kelly, a Bayport resident who ran for a New York State Supreme Court judgeship in the 2018 election, is unaffiliated with Huntington’s case, but said his obligation as a trial lawyer is to act as a steward of the law.
LIPA did not respond to email requests for comment on the public allegations.
A LIPA press release dated Jan. 25, 2006, stated that the Caithness plant in Yaphank would include a $139 million payment in lieu of taxes agreement with $100 million over 20 years going to Bellport’s South Country school district.
LIPA’s 2019 Property Tax Reduction pamphlet, which is publicly available and published on its website, highlights the value of Caithness plant in contrast to the Port Jefferson, Northport and three other plants. On page 14 of the report, LIPA stated that in 2016 Caithness paid $9.7 million annually in taxes, while the Northport plant paid “eight times” as much in taxes, or $81 million, and Port Jefferson paid “three times” as much in taxes, or $33 million.
The report also stated on page 14 that LIPA reimburses National Grid under its contract more than it earns in power revenue, a sum that factors in property taxes.
“Those losses, the amount by which costs exceed the value of power, are paid by all 1.1 million electric customers,” the report said. It indicated that LIPA’s goal for filing tax challenges in 2010 against Nassau County, the Town of Huntington, the Town of Brookhaven and the Village of Port Jefferson “in an attempt to obtain a fair tax assessment on the four legacy plants.”
In a telephone interview, Kelly referred to a Feb. 15, 2012 meeting with the Town of Brookhaven Industrial Development Agency, which recorded a Caithness representative explaining that “LIPA pays the PILOT to Caithness who then makes the PILOT payment to the IDA, and then they get a check back from New York State which is then returned to LIPA.”
The minutes further stated, “This is the only power plant on Long Island that the ratepayers are not paying any real property taxes net out of pocket for the first 10 years, resulting in a saving of $80 million.”
Kelly and Cook, in presenting the allegations publicly and to the commission, claimed that Bellport’s school district, South Country, which Cook said in his letter is comprised of 40 percent minority populations, were shortchanged tax revenue that could have funded school programs. Representatives from the South Country school district did not respond to email and telephone inquiries about their tax revenue from Caithness.
The Public Service Commission has said that it has received and is reviewing the letter from Cook. It offered no other response to questions related to its potential response.
A rendering of the planned Heatherwood Golf & Villas in South Setauket. Rendering from Town of Brookhaven Planning Board
The Brookhaven Industrial Development agency voted to postpone a decision to grant Heatherwood Luxury Rentals tax breaks for construction of rental housing units on its current golf course in South Setauket at a July 17 meeting.
File photo by Andrea Paldy
Lisa Mulligan, Town of Brookhaven director of economic development and CEO of the IDA and Local Development Corporation, said there were more than a dozen residents who attended the meeting and approximately six of them spoke during the public hearing. She said the comments varied from traffic concerns — which she added are outside of the office’s scope — and the tax breaks the company is applying for.
If approved at the IDA’s next meeting Aug. 21, Heatherwood could see its property taxes at the location, which falls in the Three Village and Comsewogue school districts, reduced by $3.76 million over the next 13 years. The package would also include $2,854,000 in sales tax exemptions and $420,000 in mortgage recording tax exemptions for a total savings of more than $7 million.
Last year, the Brookhaven Planning Board approved the proposed plans of Commack-based Heatherwood Luxury Rentals to build on nearly 26 acres of its more than 70-acre golf course on the southeast corner of Arrowhead Lane and Route 347. The new development will be called Heatherwood Golf & Villas and will be a 55-and-over community. The company plans to construct 200 rental housing units — 10 percent of which will be set aside for workforce housing units — and an 8,500-square-foot clubhouse with a pool. Heatherwood also plans to redesign the golf course, reducing it from 18 holes to nine.
Development of the golf course has faced opposition from nearby residents, elected officials and local civic associations since it was first presented in 2014. That year, town Councilman Dan Panico (R-Manorville) sponsored the resolution for a zone change for the property from A Residence 5, which allows one housing unit for every 5 acres, to Planned Retirement Community, which would allow a 55-and-over community. On Dec. 16, 2014, the town board approved it by a 4-3 vote. Councilwoman Valerie Cartright (D-Port Jefferson Station), former Councilwoman Connie Kepert (D-Middle Island) and Supervisor Ed Romaine (R) dissented.
The town board placed conditions on its zone change approval, including requiring Heatherwood owner Douglas Patrick to donate 40 acres of land to the Manorville Farm Protection Area, removing a billboard at the golf course and constructing a sidewalk on the east side of Arrowhead Lane. The town accepted the 40 acres of property in 2015 in lieu of the Pine Barrens Credit redemption required under the Planned Retirement Community code.
Cartright said in an email that within her district the project has been a highly controversial one.
“The community was against it from the get-go, and it was still able to squeak by somehow.”
— Salvatore Pitti
“Numerous residents and organizations have raised concern about this project, notably density and traffic concerns, especially in light of the existing traffic issues at this location,” the councilwoman said. “I stood with members of the community and opposed this application. However, over my objection and vote in opposition, the application was still granted, and open space benefits were provided to other areas outside of our community. The applicant has always touted this project as tax positive to the local school district. This application to the Brookhaven IDA seems to be in clear contravention to the promises made to our community.”
John Gobler, a nearly 50-year homeowner in Heatherwood Village South in South Setauket, is one of the residents who is concerned about traffic. At the July 9, 2018,planning board meeting, he said the intersection of Arrowhead Lane and Route 347 has been a problem for several years due to the number of cars exiting onto Arrowhead and the timing of lights at the corner, where he has witnessed only four or five cars being able to go through a green light at one time.
Salvatore Pitti, president of the Port Jefferson Station-Terryville Civic Association, said in a phone interview the group has been opposed to the development since the beginning. He was on hand for the July 17 IDA meeting where he addressed the residents’ concerns about Heatherwood applying for tax breaks.
“If you’re a contractor, and you don’t have money to build a project, then don’t build it,” Pitti said. “The community was against it from the get-go, and it was still able to squeak by somehow. So why should we be burdening ourselves with less taxes coming our way from a new development when [Heatherwood] is the one who is going to be raking in all the profit.”
Herb Mones, chairperson of the Three Village Civic Association’s land use committee, said the community has not supported the development since it was first proposed in 2014. He said he feels Heatherwood asking for tax breaks is an example of corporate greed.
“We are going to feel the effects of this high-density buildout in the Heatherwood area without any kind of benefit, and for the corporation to now apply for even more advantage, after getting what was millions of a windfall in a zone change, is almost incomprehensible,” he said.
George Hoffman, first vice president of the Three Village Civic Association, said the IDA should reject the request.
“Our civic association was concerned that the zoning was changed without any community input, and we remain concerned that this ill-conceived project now seeks taxpayer-funded incentives like property tax abatements and sales tax exemptions,” he said.
Douglas Patrick could not be reached for comments before press time.
Developer to get financial assistance from Brookhaven Industrial Development Agency
The location of the future senior residential community The Vistas of Port Jefferson off North Bicycle Path in Port Jefferson Station. Photo by Alex Petroski
What is currently an open field on North Bicycle Path in Port Jefferson Station will soon be home for some.
A new 244-unit residential rental complex for senior citizens proposed
27 acres of vacant land on the west side of North Bicycle Path, north of Comsewogue High School, has been greenlit. The Brookhaven Town Industrial Development Agency announced in an April 26 press release it had approved an application for economic incentives with Benjamin Development Co., operating as The Vistas of Port Jefferson LLC, which will also be the name of the new community. The IDA is tasked with selecting projects that “promote the economic welfare and prosperity of the Town of Brookhaven by assisting in the acquisition, construction, reconstruction, and equipping of commercial and industrial facilities.”
As part of the financial assistance agreement between the agency and developer, The Vistas of Port Jefferson will make payments in lieu of property taxes for 13 years, starting with a $52,000 installment in year one, jumping to about $90,000 in year four, and concluding with a $1,516,043 payment in the final year of the agreement. In total, the company will pay about $8 million in lieu of higher town property taxes during the 13-year agreement. The total cost of the project is expected to be about $65 million.
The area boxed in red represents the location of the future senior residential community The Vistas of Port Jefferson off North Bicycle Path in Port Jefferson Station. Image from Google Maps
Lisa Mulligan, chief executive officer of the IDA, declined to comment on the agreement in a phone interview beyond what the agency offered in a press release, though she said the ball is in the court of attorneys on both sides to officially close the deal, which she said she fully expects to take place.
A request for comment to Benjamin Development Co. was not returned.
“As a result of IDA assistance for the development of this project, hundreds of new construction jobs will be added to the region,” the company’s application to the IDA stated. “The project development will also benefit local/regional firms through purchases from suppliers, subcontractors, etc. Finally, the project will create new full-time jobs and 245-plus new residents that will assist in the stimulation of the local economy through daily household spending.”
The project is expected to create more than 400 new construction jobs as well as 24 new permanent positions, according to the IDA press release. The Vistas of Port Jefferson will offer 64 two-bedroom townhouses, 36 one-bedroom units, 144 two-bedroom apartments with a clubhouse and a sewage-pumping facility. Construction is expected to take about two years. The facility is billed as a community for tenants age 55 and up. Fifteen percent of the units will be designated as affordable housing, available to prospective tenants earning less than 80 percent of the area’s median income, which was about $90,000 per household from 2012 to 2016, according to the United States Census Bureau.
Brookhaven Councilwoman Valerie Cartright (D-Port Jefferson Station) said in an emailed statement through Legislative Secretary Carolyn Fellrath the town IDA is a separate entity from the board and does not seek input from councilmembers in making decisions.
“This proposed project has generated concern in the community,” Cartright said. “The re-zoning of this parcel in 2010 pre-dates my tenure. However, based on the community concerns raised to my office, I am not sure the decision to re-zone this parcel to Planned Retirement Community would be granted if this application were before this town board today.”
A rendering of the Overbay apartment complex. Image from The Northwind Group
By Kevin Redding
A new, 52-unit apartment complex being built in Port Jefferson Village this spring just got a financial boost from the town.
The $10.8 million project, which will be called Overbay, was recently approved for a package of economic incentives that includes sales tax exemption and payments in lieu of taxes, or PILOTs, by the Town of Brookhaven Industrial Development Agency.
During a Jan. 10 meeting, members of the IDA board announced the approval for the Hauppauge-based development company, The Northwind Group, to construct the 54,000-square-foot “nautical-style” apartment building on the now-vacant site of the former Islander Boat Center building on West Broadway, which was demolished by the company in February. The IDA received Northwind’s application in 2015.
Overbay would stand as the third new apartment complex built in the village in recent years. With the IDA’s assistance, it is expected to have considerably lower rent costs than the others in the area, according to Lisa Mulligan, IDA chief executive officer.
Prices for the units have not been established yet. When Northwind managing member Jim Tsunis received approval by the village building and planning department for the apartments in 2015, he estimated rents would range between $1,800 and $2,200 a month, Mulligan said.
“Just in general, the need for affordable rental housing in the Town of Brookhaven is well documented and significant, so our IDA board of directors felt this was a project that would help fill that need,” Mulligan said, adding Overbay will be especially helpful for college students and seniors. “The clientele is anybody who is looking to move out of their home and into something that’s a little easier to upkeep. There aren’t enough legal rentals that are [affordable]. A development like this one provides that option.”
Frederick Braun, chairman of the IDA, spoke of Overbay’s benefits in a press release.
“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,” he said.
The complex is also expected to create two permanent jobs — Mulligan speculated perhaps a rental agent and a building superintendent — and 150 construction jobs over a two-year period. IDA financial incentive agreements typically require the creation of jobs, both permanent and construction related.
Tsunis said the incentives will help Northwind offset the Islander Boat Center building’s $200,000 demolition costs.
“It’s going to enable me to spend more money on the building, so the end result is there will be a better product for the residents of Port Jefferson,” Tsunis said. “It’ll definitely bring people into the downtown area that will spend money at the local shops.”
Community response has long been mixed on the project, even within the village board.
Overbay’s eastern neighbor, The Shipyard apartment complex, which was constructed by Tritec Development Group, opened in January. That project secured a financial assistance package from the Suffolk County IDA and will make PILOT payments to the village for 15 years in lieu of property taxes.
The influx of new village residents without the benefit of increased property tax revenue has been a point of contention for property owners.
“I think it’s a real disaster for the village that they were able to get this financial assistance,” 30-year village resident Molly Mason said in a previous interview, referring to The Shipyard. “It’s like we’re giving away the store.”
Village Mayor Margot Garant and the board of trustees previously opposed the financial assistance granted to Tritec.
