The Nassau County Industrial Development Agency on Wednesday approved tax breaks on a $112 million project to build a new office building in the Village of North Hills for Dealertrack Technologies, which provides software services to automotive retailers.
The deal includes up to $1 million in mortgage tax exemptions and more than $5.7 million in sales tax exemptions, as well as a 19-year payment-in-lieu-of-taxes agreement that would hold current real estate taxes constant for 12 years and before allowing increases in the remaining seven years.
Dealertrack in April was also awarded $12 million in tax breaks and grants from the Empire State Development, the state economic development agency.
“This is significant because Dealertrack seriously was leaving the state,” said Joseph Kearney, executive director of the Nassau County IDA. “They were going, to Texas, Florida, New Jersey, South Carolina – they all wanted them. This is a real tribute to the people at Dealertrack, the folks at the state and the folks at the IDA and village, that we were able to bring this transaction to this board here tonight.”
Officials said the deal would inject more than $3 billion into Nassau County’s economy, create 357 jobs and retain 367 jobs for the Lake Success-based company, which would be moving its corporate headquarters to 3400 New Hyde Park Road.
Construction to the 233,000-square-foot building, to be built on a 9.7-acre property, would create 552 full-time-equivalent jobs during the two-year project, officials said.
“This is going to be a magnificent building, a real model of what technology and construction in Nassau County can look like,” Kearney said.
The board also approved a negative declaration as part of the State Environmental Quality Review Act, stating construction of the building would not have an adverse effect on the surrounding area.
“From creating new jobs to generating economic activity in our local economy, this announcement is a win-win for Nassau residents,” Nassau County Executive Edward Mangano said in a statement.
Dealertrack was founded in Garden City in 2001 and moved to Melville later that year. In 2005, the company moved to its current Lake Success location at 1111 Marcus Avenue.
Dealertrack in early August reported revenues of $224.8 million for the second quarter of 2014, an 85 percent growth from the same time last year. The company employs about 3,500 people worldwide.
Reach reporter Bill San Antonio by e-mail at bsanantonio@theislandnow.com, by phone at 516.307.1045 x215 and on Twitter @ Bill_SanAntonio. Also follow us on Twitter @theislandnow1 and Facebook at facebook.com/theislandnow.
