City calls on IDA to conduct economic analysis of Superblock project

City Manager Jack Schnirman called on the Nassau County Industrial Development Agency on Friday to conduct an economic analysis of a developer’s plan to build two luxury apartment buildings on the long-vacant Superblock property. (Photo courtesy iStar)

City Manager Jack Schnirman called on the Nassau County Industrial Development Agency on Friday to conduct an economic analysis of a developer’s plan to build two luxury apartment buildings on the long-vacant Superblock property.

The developer, iStar Financial, is seeking approval for a 20-year, $109 million payment in lieu of taxes, or PILOT, program, and is set to present its proposal to the IDA at a public hearing at City Hall on Wednesday.

In a letter dated Feb. 19 to IDA Executive Director Joseph Kearney, Schnirman said that the public has expressed frustration “over the fact that they have been left with no way to gauge the possible economic advantages of this project — in terms of local job creation and growth — in comparison with the tax abatements sought by iStar.”

“To promote healthy and informed public dialogue on this issue, we feel it is essential that the IDA, which is responsible for determining iStar’s application for tax abatements, publicly release its cost-benefit analysis,” Schnirman wrote. “The enhanced insight provided by these materials will only serve to benefit all stakeholders, regardless of whether they ultimately choose to support or oppose iStar’s application for tax abatements.”

Hundreds of residents, officials and union labor supporters are expected to attend Wednesday’s hearing. In September, the IDA denied iStar’s request for a 25-year, $128.6 million tax break to move forward with the $300 million project, after hundreds of city residents packed City Hall to speak against the previous tax abatement proposal last June.

For his part, Kearney said the agency’s decision to reject last year's requested tax break was based on strong public opposition, among other factors. He added that the analysis the city is seeking would be determined after this week's hearing.

“You can’t get what doesn’t exist — we can’t produce what doesn’t exist,” said Kearney. “We are not there yet. We will be there when this hearing, if it’s the last hearing we have on this application, is concluded on Wednesday night.”