The Suffolk County Industrial Development Agency approved a 15-year tax abatement and sales tax exemption on Thursday for a $110 million assisted living and memory care facility proposed by Silver Fox Northport LLC, after the board heard concerns from two school districts about how such agreements affect their finances.
David Currie, an attorney representing Silver Fox Northport, told the board the project would include 500 construction jobs totaling more than 400,000 hours at prevailing wage, and permanent staffing that would grow to between 44 and 64 full-time positions with a payroll over $4.2 million at stabilization. He said the site's current annual taxes are about $55,000.
Kevin Grimes, who answered questions on the project's financial terms, said the pilot agreement begins with a 60% tax abatement that decreases by 4% each year over its 15-year term. He said the property's as-complete taxes would be $429,000, and that the agency expects $4.6 million in taxes to be collected over the term, a savings of $1.7 million compared with full taxation, plus about $2.9 million in sales tax exemption savings.
Before the vote, Dr. Ruby Harris, assistant superintendent for finance for Huntington Community Free School District, asked the agency to notify and include school districts earlier when pilot agreements are being considered. "My goal is not to oppose the economic development," she said, adding that she wants a process that lets districts "understand proposed agreements, discuss their potential financial implications and improve meaningful input before decisions are finalized."
Christine Duran, an attorney appearing on behalf of the Northport-East Northport Union Free School District alongside assistant superintendent for business Robert Howard, said Superintendent Dr. David Moyer had submitted a letter to the IDA raising concerns that the financial impact analysis for the Silver Fox project used a static assessed value over the 15-year term and that there were discrepancies in the assessed value figures across documents. She said pilots affect the district's tax cap calculations and tax base growth factor and asked for clarity on whether the property would return to the tax rolls once the pilot term ends.
A board member said the board shares the districts' views on the importance of communication and that the agency and school districts could benefit from more coordination as projects come forward.
A representative of Culinary Workers Local 200, Anthony Venezio, and a representative of General Building Laborers Local 66 both spoke in favor of the project, citing the agency's Long Island First Policy encouraging the use of local workers. A board member noted the agency has staff who monitor applicants' compliance with that policy.
In other action, the board approved the IDA's 2027 operating budget and an engagement letter with Sheehan and Associates for 2027 audit services, both unanimously. It also approved the sale of a property tied to the Culinary Arts Riverhead LLC project, dating to around 2007, to Suffolk County, which terminates that project's pilot, and approved an assignment and assumption of the pilot agreement for the JDJ Gateway JV LLC housing project, a 66-unit complex dating to 2018, with no change in terms.