The Firm is a leader in representing private sector businesses and developers in their applications to Industrial Development Agencies(IDAs) across Long Island. The Firm’s experience has allowed it to assist businesses, property owners, and developers in identifying and maximizing potential benefits. We have handled many high profile clients and projects, including several corporate headquarters relocations, with outstanding results.
Industrial Development Agencies can offer substantial benefits to commercial real estate projects—benefits that are often overlooked by the real estate and business communities. These benefits can often make or break a deal and IDAs are looking to“make” deals that might otherwise not happen. IDAs incentivize businesses to locate, expand, and/or remain in New York State.
The potential benefits include: a sales tax exemption on construction materials and eligible equipment; a mortgage recording tax exemption; and, often the most valuable, a beneficial PILOT agreement with significant savings on real property taxes. A project may also qualify for“Tax Exempt” and/or“Taxable” bonds, providing lower interest rates and allowing a project to tap credit markets not otherwise available.
It is very important to approach the IDA as early as possible, before a contract, when the deal is being put together.