Developer Hooshang Nematzadeh has filed for financial assistance from the Nassau County Industrial Development Agency for the construction of a mixed-use building to be built at 5-9 Grace Avenue in the Village of Great Neck Plaza.
If the application is approved, Nematzadeh, who is also president of the Great Neck Chamber of Commerce and a Village of Kings Point trustee, “would receive financial assistance from the agency in the form of potential exemptions or partial exemptions from real property taxes, mortgage recording taxes and sales and use taxes,” according to the IDA website.
The building, which was first introduced to the village in the summer of 2012, was approved by the Village of Great Neck Plaza Board of Trustees in December and by the board of zoning appeals in January. It is the first building to be approved under the village’s Business “B” District zoning law, which allows for residential units to be built on top of storefronts or offices.
The building, which will be 35-feet tall and 4,800 square-feet, will consist of two storefronts or corporate offices on the ground level with 30 apartments on the second, third and fourth floors.
Nematzadeh said in an interview that the tax breaks were necessary to make sure the building would be profitable.
“No project is feasible without IDA benefits,” Nematzadeh said. “More than a third of the rentals will go to taxes. Therefore, projects don’t become viable and this is why we don’t have that much construction in Nassau County.”
Village of Great Neck Plaza Mayor Jean Celender said at the village board’s Wednesday meeting that while she supports the development, the tax breaks would take money away from the village.
“I don’t think any of us are looking forward to a tax break,” Celender said. “We need to secure a way to provide services.”
Nematzadeh said he is working out a payment in lieu of taxes – known as a PILOT- agreement with the village that would pay the amount of village taxes owed to Great Neck Plaza.
“We understand village needs every dime of this to provide the services,” he said.
Celender said she had no problem with the IDA exempting companies from county taxes, but that the village taxes should be paid for by the company.
“We don’t want to lose out on the local taxes,” she said.
Nematzadeh, in his IDA application, says the project will help revitalize Great Neck’s downtown area.
“Current trends in state and county is to build in downtowns near mass transpiration, in an effort to bring life and population to downtowns,” Nematzadeh said. “This in turn enhances local stores sales and bring vitality into downtowns.”
Nematzadeh expects 60 full-time construction jobs to be created during the time the development is being built, according to his IDA application.
Two full-time jobs will be created within the building after its completion, according to the IDA application.
Construction on the building is expected to start on Aug. 1, 2014 and be completed two years later, according to the IDA application. Residents are expected to begin moving into the apartments one month later on Sept. 1, 2016.
