Suffolk IDA hears opposition to $2M in tax breaks for Kings Park apartment complex

The Suffolk County Industrial Development Agency heard opposition on Wednesday to a proposal for $2 million in tax breaks for a transit-oriented apartment complex in Kings Park.

The agency on July 28 approved preliminary tax breaks for Cornerstone Kings Park, a planned three-story building with 46 units on the corner of Meadow and Indian Head roads. 

The $22 million project is being developed by Terwilliger & Bartone Properties of Farmingdale and Tanzi Properties LLC. The complex will be built on a .48-acre parcel and a restaurant will be razed to make way for it, IDA documents show. The IDA considers the entire property under review a two-parcel, 2.26-acre lot. The remaining 1.78 acres includes a now-closed Rite Aid pharmacy and office building. The development would have 137 parking spaces, including 29 in a below ground parking garage.

During the IDA's hearing at Smithtown Town Hall on Wednesday, several people criticized the project.

Shala Pascucci, who serves on the Kings Park school district's board of education, asked how the agency would make sure homeowners “don’t end up paying more, while the developers pay less.”

Pascucci said the school district “relies heavily on tax revenue” and asked what procedures are in place to ensure the developers deliver on their promises of job creation and community benefits.

Suffolk Legis. Rob Trotta (R-Fort Salonga) also expressed opposition to the project. “They shoehorn 46 units on less than half an acre in the parking lot of a drugstore,” Trotta said, referring to the developers. Trotta said the project will produce a "burden on everyone else.”

Kelly Murphy, the IDA’s executive director, said the tax breaks are likely to be considered at the agency's Aug. 28 meeting.

Tony Tanzi, owner of Tanzi Properties, serves on Smithtown's zoning board and has recused himself from town votes on the project.

Tanzi said in an interview after the hearing the developers were making "a significant investment" and the tax breaks "gives us the ability to just do the project." 

He said the project will create about 90 jobs. He noted those workers over a roughly two-year construction period would be able to spend money downtown, while those living in the complex would as well. That "obviously has a great benefit to the business district," he said.

Tanzi noted there would be minimal effect on the school district's enrollment, if any.

Grow America, which produced a cost-benefit analysis for the IDA, recommended approval. The complex is expected to generate roughly $1.86 million in public benefits, the company's report said.

The issue of development in Kings Park has become a flashpoint in the community. Those in favor of the commercial and residential developments, including the apartment complex, say its approval would create more housing opportunities for young professionals and seniors. But opponents say the project is one of several that would increase density in the hamlet, leading to more traffic and a strain on town resources.

The project has won key town approvals. In March, Smithtown’s Zoning Board approved plans for the project.

And in July, the Smithtown Town Board voted 5-0 to waive the full environmental review, accelerating its timeline for approval. Town officials said potential impacts from the complex were not significant enough to trigger a full review under the state's Environmental Quality Review Act.