HEMPSTEAD, NY – Frederick Parola, CEO of the Town of Hempstead Industrial Development Agency, announced that the agency has reauthorized an economic incentives package for a Long Island developer planning to construct a transit-oriented apartment/retail complex on a well-known, but blighted site in West Hempstead.
The IDA, meeting on May 23, re-authorized benefits for 111 Hempstead LLC, an affiliate of Commack-based Heatherwood Luxury Rentals LLC, which plans to construct the apartment buildings at 111 Hempstead Tpke., at a cost of $212 million. The buildings would total 481,089 square feet. Heatherwood’s plan calls for 428 apartments, 5,575 square feet of retail space in two four-story buildings, and parking for 740 cars. The development will include 385 market-rate residential units and 43 affordable units.
The project will generate hundreds of construction jobs, add much-needed rental housing and boost tax revenues for various taxing jurisdictions. The project previously was authorized in October 2021, but has since been redesigned to two buildings from three and, as a result, needed to be reauthorized.
The project has received Town of Hempstead approvals. The project is expected to generate 250 construction jobs and seven permanent jobs. Construction is expected to begin in January, following the demolition of the existing building and be fully completed in 2027.
The 9.4-acre site of the proposed project, 0.3 mile from the West Hempstead LIRR station, is a three-story, 106,652-square-foot building that previously was home to an S. Klein department store from 1955 until 1974 and after that a branch of E.J. Korvette, the erstwhile discount chain; and the now-shuttered National Wholesale Liquidators and other retailers.
“This Is a good project for the IDA,” said Parola. “It will replace an eyesore— a dilapidated building, bring much-needed rental housing to the town close to public transit, create jobs, and generate increased revenues for our taxing jurisdictions.”
The developer was granted a 20-year PILOT agreement with the IDA under which it would pay an average of $2.1 million each year to various taxing jurisdictions. Annual PILOT payments would start at $771,088 – the current taxes on site – and after a three-year freeze would increase over the balance of the PILOT to $5,312,000. Heatherwood also is seeking an exemption from the mortgage recording tax and sales-tax exemption for construction materials.