Moving ahead on Superblock

For 40 years, the six acres of property between Long Beach and Riverside boulevards in Long Beach have sat vacant, becoming an eyesore and an irritant to residents and city officials as proposals for its use came and went.

Now, a plan by Garden City developer Engel Burman Group, which has been on the horizon for a few years, has taken steps toward fruition.

The developer is proposing the construction of 200 condominiums and 238 rental apartments in two nine-story buildings, with 10 percent of them set aside for affordable housing. The project would include 900 parking spots, a restaurant by the boardwalk with its own parking, a “grab-and-go” food store, pools, a community area and a tennis court.

The cost of the project is pegged at $200 million to $300 million.

A few weeks ago, Long Beach’s Building Department gave preliminary approval to the project, according to RyanMcTiernan, the city’s community development director. The department is awaiting drawings and other relevant documents, McTiernan said. The project adheres to Long Beach’s zoning codes.

Harry Coughlin, executive director of the Nassau County Industrial Development Agency, said Engel Burman executives met with IDA staff, but filed no papers asking for a payment in lieu of taxes agreement, or PILOT. In an interview, Jan Burman, Engel Burman’s president and CEO, and Steven Krieger, a principal at the firm, said they would seek a PILOT for the rental units. They said they expected the city to receive significant tax benefits from the project.

“You’re going to see a very large investment in Long Beach,” Burman said. “You’re going to see a major ripple effect in the city’s economy. People living there are going to be spending money in the economy.”

Engel Burman developed the Aqua, an eight-story, 56-unit condo building with ocean views from every residence, in Long Beach. The firm has also built Bristal assisted-living facilities across Long Island.

At the Superblock project, condos are expected to sell in the $700,000 to $1 million range. Rentals would go for $3,000 to $4,000 a month.

Burman said that company officials hope to close on the deal by year’s end. The firm is in contract to purchase the property, but the contract depends on the company’s receiving all necessary approvals and the PILOT agreement.

There are potential obstacles to the deal. The previous owner, iStar Financial, of Manhattan, has filed a $100 million lawsuit against the City of Long Beach, claiming the city reneged on its agreement to support iStar’s request for tax breaks. The city has filed a motion to dismiss the suit, which is pending. Burman and Krieger said it must be settled for them to proceed.

An Engel Burman spokesman said, “We are not privy to the lawsuit negotiations, as we are not a party to them. It is our belief, however, that upon the receipt of our building permit, the lawsuit will be settled, and a new and far more successful chapter for the Superblock can be opened.”

The PILOT is a sensitive issue in Long Beach. Although Engel Burman held about a half-dozen meetings with civic groups in recent months, some civic leaders are withholding their support until they see the PILOT’s details. They also question whether the city’s infrastructure can support the project.

The project comes along when the city needs new revenue sources to fix its financial woes. The last two city budgets included 8 percent tax hikes.

“I think the city needs this,” said Leah Tozer, vice president of the Long Beach Chamber of Commerce and a real estate agent in town. “We need to expand our tax base. The city is in a death hold right now. We need money, and there is no money.”

Sam Pinto, president of the Eastholme Civic Association, said the Engel Burman project is preferable to iStar’s, which was much larger. “This one is more realistic,” Pinto said. “But we’re concerned about the impact on the infrastructure. We’re also concerned about tax breaks for the developer.”

The Eastholme group hosted the first two meetings with the developers. “We’re glad they did a road show,” Pinto said. “But that information was preliminary, and that wasn’t the forum to discuss tax breaks.”