By ARIELLA MONTI
AvalonBay inherited the application in November 2007, when it acquired the former Darby Drugs property at 80-100 Banks Ave. from Chase Partners who had planned to develop Signature Place. AvalonBay now plans to build a 349-unit apartment complex on the site. Under terms of the agreement with the IDA, AvalonBay would be eligible for reductions in mortgage recording taxes, sales taxes and property taxes for up to 15 years. During that time the developer would pay the village Payments in Lieu of Taxes, or PILOTs, which are discounted from standard tax rates.
About 60 people crowded into a small Rockville Centre Library conference room for the meeting. Courtesy was in short supply on both sides, as residents shouted harsh comments out of turn and Parola continually interrupted speakers who voiced their opposition to tax breaks for AvalonBay. The meeting ran longer than four hours, and Parola heard from village officials, school Superintendent Dr. William Johnson and every resident who wanted to speak.
The main area of concern was the potential loss of funds for the village and the school district if AvalonBay's property taxes are reduced under the PILOT program. "I've never had as difficult a budget as this," Comptroller Michael Schussheim said of the village's 2009-10 spending plan.
Schussheim told Parola that the village received $981,000 from mortgage recording taxes last year, but with the economy reeling, receipts are predicted to total just $560,000 in 2009-10 and $450,000 in 2010-11. Schussheim said that cutting AvalonBay's contribution would exacerbate the problem and put an unfair burden on residents.
Parola noted that AvalonBay currently pays $66,000 in property taxes for the vacant property, and taxes on a completed project would increase. He added that AvalonBay argued in discussions with the IDA board that if it does not receive the PILOT program benefits, the project may not go through, leaving the village with the empty lot.
Mayor Mary Bossart took exception to Parola's assertions, noting that there were others interested in buying the Banks Avenue property, and if AvalonBay walked away, another developer would scoop it up. Bossart also said the IDA has no power to grant tax abatements without the consent of the village, and that AvalonBay's plans for the site do not create industry, which is the purpose of an IDA agreement. She added that there would be only six full-time positions at the completed complex, so AvalonBay's position that the project would generate jobs was incorrect.
Parola countered that previous rulings in other municipalities allowed an IDA to grant abatements without consent and to residential developers. He offered to show village officials those rulings.
AvalonBay's development director, Chris Capice, said the project would bring more people into the village and rejuvenate the downtown area, where many stores are now empty. Capice added that the median household income of renters in AvalonBay apartments across Long Island was $150,000 a year, and Glen Cove's downtown area saw a 17 percent rise in retail sales after a development opened there.
Residents did not seem convinced, and were visibly angered when Parola did not allow Capice to take any questions.
"In these economic times, we're fighting to get by," said Jennifer Depola in her statement to Parola, adding that the village would suffer in the long run. "I'm just finding this so hard to stomach."
Another resident, Peter Rincones, told Parola that he was giving the crowd the impression that the hearing was just a formality, and AvalonBay was going to be issued the abatement regardless of how residents feel. "This is a stab in the heart to the Village of Rockville Centre," Rincones said.
Parola responded that while AvalonBay had been granted preliminary approval to go forward with the application process, it still had to provide more information, the board needed to review testimony from the hearing and AvalonBay's application could still be denied.
One resident claimed that the village was already overdeveloped and that another apartment complex would mean more people walking and driving through town. She added that people who make $150,000 a year have the money to pay taxes and should pay their fair share.
Residents were clearly irritated that there were no members of the IDA board at the meeting to respond to their complaints, and a transcript would not show how passionately opposed to the project they are. Parola urged residents to come to the next IDA meeting to voice their concerns.
The town IDA is a self-governing entity that does not use tax dollars for its operations. It charges developers fees based on their projects' costs. Its next meeting is scheduled for March 25 at 9 a.m. in the Old Courthouse at 350 Front St. in Hempstead. For more information, go to tohida.org.
Comments about this story? AMonti@liherald.com or (516) 569-4000 ext. 282.
