By ARIELLA MONTI
According to Matthew Whalen, vice president of development for AvalonBay, Chase Partners, the former owner of the property, filed the application in 2005. AvalonBay inherited it when it purchased the property, at 80-100 Banks Ave., in November 2007. A series of lawsuits filed against the village by Chase Partners regarding the property kept the application from being finalized until now.
Under the terms of the agreement with the IDA, AvalonBay would be eligible for reductions in mortgage recording taxes, sales taxes and property taxes for 10 years. During that time the village would receive payments in lieu of taxes under the IDA's so-called PILOT program.
"These are incentives," said Fred Parola, executive director of the IDA, explaining that the agency would offer no monetary assistance to AvalonBay as it develops the property. "Without this you aren't going to get this kind of project." Parola went on to say that the development would ultimately enhance the area and generate more taxes.
In the first year of the program, AvalonBay would pay the village the current property tax rate, but in subsequent years the property taxes would not increase as much as the market rate. The rate at which the yearly increase in those taxes would be discounted has yet to be determined. After 10 years, taxes on the property would revert to the full market rate.
The agreement would also waive AvalonBay's mortgage recording tax, and any sales tax paid for construction materials.
While the agreement is seen as a positive step toward developing the area by Whalen and Parola, village officials said they think it will have a negative affect. "Until we receive the proposal from the IDA, the village won't know what the specific impact will be on any of the taxing jurisdictions," said Comptroller Michael Schussheim. "However, any reduction in mortgage tax, sales tax or real estate tax will have an adverse impact on the real estate taxpayers throughout Nassau County. Particularly hard hit will be the real estate taxpayers in the Village of Rockville Centre and the Rockville Centre School District."
When asked what impact the agreement would have on the village, Parola stated, "De minimis. You have a vacant property that is paying low taxes and, ultimately, during the PILOT, there will be more taxes generated. So there will be an incentive for the people because, ultimately, they'll have full taxation."
According to a public notice filed by the IDA, it will conduct a public hearing at the Rockville Centre Public Library on Feb. 11 at 9:30 a.m. to allow community members to review the proposal and voice their opinions on the agreement.
Comments about this story? AMonti@liherald.com or (516) 569-4000 ext. 282.
