By Brian Zanzonico
With EZ status, businesses become eligible for sales tax exemptions, real property tax credits, wage tax credits and utility rate reductions that enable them to operate virtually tax free. EZs have created 100,000 jobs across the state in the past 11 years, said state Sen. Dean Skelos (R-Elmont), and more than 300,000 people are employed by 9,500 businesses within 72 current EZs.
"I'm hoping that for Elmont, this will be the beginning of an economic resurgence for Hempstead Turnpike, Linden Boulevard and Central Avenue," said Assemblyman Tom Alfano, who vowed during his State of Elmont address last year to help secure an EZ for Elmont.
Gov. George Pataki, Senate Majority Leader Joseph Bruno (R-Brunswick) and Assembly Speaker Sheldon Silver (D-Manhattan) signed an agreement last week designating the Nassau County zones, along with Chinatown and Livingston County upstate.
To ensure the designation of Empire Zones in Nassau County, the county's state Senate delegation partnered with County Executive Tom Suozzi and Town Supervisor Kate Murray to create a new application, submitted jointly by the county and the Town of Hempstead, targeting areas struggling to create and expand jobs. As a result, the Empire Zones' 2 square miles will be divided among Elmont, West Hempstead, Bethpage (at the former Grumman site), Glen Cove, Inwood, New Cassel, Roosevelt, Uniondale, Freeport and Hempstead.
"There are pockets of communities that have been left behind because of the development of malls," said Charles Gargano, chairman and commissioner of the Empire State Development Corporation, the state's economic development agency, at a press conference at Seviroli Foods in Garden City, one of the world's largest manufacturers of tortellini. "Empire plans help communities attract jobs by offering a load of tax benefits."
In addition to attracting new businesses, officials hope EZs will keep companies from moving out of state. "We're in a fight with other states and other nations," said state Sen. Kemp Hannon (R-Franklin Square). "We have to give [local businesses] a break so we can grow our economy."
A break would also come to Elmont taxpayers, who currently get little help from its small commercial tax base. "It's a huge relief to taxpayers," Murray said. "The more business that can be attracted will increase the tax base. Not only will this be a total boon, but a serious trickle-down effect for residents. In Elmont, it can't be overstated how important this will be."
Skelos said that tax breaks for businesses would not fall on the backs of taxpayers. "These tax benefits received by the company will be absorbed by the state, not diminishing the real property tax base," he said.
Murray said that Nassau County has long been overlooked as a candidate for EZs because the median income is high, leading to the perception of many upstate legislators that the county is wealthy. Suozzi, who has lobbied Albany for the zones for years, called it one of the best investments the state has made in economic development. "People want to locate to Nassau County, but need economic incentives," Suozzi said. "This will produce fantastic results."
Longtime Elmont resident Pat Nicolosi said he is pleased with the EZ designation, but that the community needs more.
"I'm ecstatic that the county and town is working together, but until I see something going on, see this working, I can't get too enthused," said Nicolosi, who is also the president of the Elmont East End Civic Club. "We've been promised things before and had the door slam us in the face."
He also said the EZ is a "Band-Aid approach" to jump-starting commerce and doesn't address the issue of Elmont's lack of affordable housing.
"Where would the young people employed by these businesses live?" he said. "We need more than an Empire Zone. A lot more."
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