Main Image for IDA Support to Bring 3rd Building to Hamptons Business District

IDA Support to Bring 3rd Building to Hamptons Business District

$10.8M Rechler Equity industrial building in Westhampton wins tax breaks

The building is the third at the Hampton Business District industrial park project at Francis S. Gabreski Airport.

The first building at the Hampton Business District

The first building at the Hampton Business District at  Francis S. Gabreski Airport in Westhampton Beach, seen on June 15, 2017. Photo Credit: Randee Daddona

Plainview-based developer Rechler Equity Partners has received final approval from the Suffolk County Industrial Development Agency for tax benefits for its development of a $10.8 million industrial building at its business complex in Westhampton Beach.

The building, located at 215 Roger’s Way, is the third at Rechler Equity’s Hampton Business District industrial park project at Francis S. Gabreski Airport. The 64,360-square-foot, U-shaped building will be subdivided into individual manufacturing, showroom and office spaces ranging from 2,000 square feet to 30,000 square feet.

“There is a demand and a market to be created out on the East End,” said Mitchell Rechler, managing partner at Rechler Equity. “There was a real need for quality workspaces, whether it is industrial, showroom, office, lab or the combination of each.”

The complex is planned to eventually have nine commercial buildings.

Rechler said his company has been in talks with several potential tenants for 215 Roger’s Way — mainly smaller, local businesses — and expects that “quite a bit” of the building will be preleased.

The IDA approved the project, expected to be completed early next year, for a sales tax benefit of up to $550,636 on the purchase of construction materials, a mortgage recording tax benefit of $105,000, and a 15-year property tax deal on the currently vacant 6.8-acre lot for the building. Property taxes on the building, once complete, will be abated for the first year and increase 6.5 percent each year for the remaining period.

“It’s been successful to date,” Anthony J. Catapano, executive director of the IDA, said of the business park’s development. Catapano cited the growth of companies like Tate’s Bake Shop, which operates at another building in the complex, as proof of the project's impact on the area. 

The IDA has awarded benefits for Rechler Equity's two prior buildings at the industrial park.

Tenants at the developer's first building have grown employment from 46 jobs in 2015 to 115 jobs in 2017, surpassing job commitments Rechler Equity made to the IDA, Catapano said.

Rechler Equity broke ground on the park’s first building in 2014. Southampton-based cookie maker Tate’s, AC Lighting & Electrical Supplies of Smithtown and national HVAC equipment distributor Carrier Enterprise are tenants of the building, at 220 Roger’s Way. The airport and surrounding 50 acres are owned by Suffolk County.

Posted: August 6, 2018 In: IDA News & Press, Suffolk Economic Development News


No Archive Yet