Mineola residents and school district officials expressed mixed opinions at the Nassau County Industrial Development Agency’s (IDA) hearing yesterday concerning long-term tax breaks for the proposed 266-unit Village Green apartment complex Lalezarian Developers plans to build in downtown Mineola.
The proposed 20-year PILOT (payment in lieu of taxes)on the planned apartment complex at 199 Second St., stipulates a $210,150 payment in the first year of the agreement, rising to $895,562 in the final year. PILOT payments would total $9.1 million over the 20 years.
At the outset of the hearing at Mineola Village Hall with Joseph Kearney, county IDA executive director presiding, John Spellman, deputy village attorney, said the Mineola Village Board approved the proposed 20-year PILOT when it voted 4-1 to approve the Village Green on May 20.
“The village supports that PILOT,” Spellman said.
Mineola Superintendent of Schools Michael Nagler said the school district would see a shortfall of approximately $1 million from the proposed Lalezarian development on Second Street the year after the PILOT payments stop. In the last year of the PILOT on Lalezarian’s rising 315 unit building at 250 Old Country Rd. in 2034, the PILOT payment would be $1.4 million, while PILOTs from Mill Creek Residential’s 275-apartment Mineola Modera and 36-unit Hudson House complexes would bring total PILOT payments of $2.5 million on the three properties, dropping to $1.18 million the following year.
“If you granted an additional PILOT now, you would then make substantial revenue losses for three consecutive years,” Nagler said. “The district has no legal means to save monies for this inevitable loss of revenue.”
Nagler said tax property revenues would be paid by class II village taxpayers, renters and co-op owners, while Lalezarian’s taxes on the property would be put into a “tax pool” that would reduce payments to the district. He said the IDA has a “fiduciary responsibility” to ensure the district’s stability.
“You cannot simply kick the can down the road in the hopes that something will change in the future,” Nagler said.
After the hearing, Spellman said the school district would not lose revenue after the PILOT for The Village Green project. “Then they pay full tax. Where’s the difference?” Spellman said.
In a conversation with Mineola Chamber of Commerce President Tony Lubrano after the hearing, Nagler said, “My question is how many PILOTs are they going to grant?”
During the hearing, Lubrano said, “Having residents in that area will help it come back to life. The revival of the downtown is important to property values in Mineola.”
Lubrano doubted the 199 Second St. project would bring “a huge number” of school-age children into district schools.
Jennifer Trested, president of the Mineola High School PTA, said she was concerned about the possible loss of academic programs because of increased expenses from a growing student population.
“We want quiet and peace. We don’t want a bustling metropolis,” Trested said. “This is a mistake. It should not happen.”
Mineola resident Cheryl Lamposona, a school teacher in Queens, said she was concerned about “overcrowding in the district schools.” “Now my schools are going to turn into the schools I teach in,” she said.
Russell Sutherland, president of the Birchwood Court Apartments co-op board, said the Birchwood complex contributed $1.3 million to school coffers this year. “We are a cash cow to the school district, as other multi-unit apartment buildings will be,” he said.
The horseshoe-shaped, eight-story Village Green developer will need to adhere to conditions, mainly streetscape improvements, apartment set-asides and other public amenities.
Lalezarian will pay $175,000 to the village for lost revenue from the parking meters to be removed from Second Street, according to the agreement. Lalezarian will also pay the village $2 million in amenities.
Road reconfiguration will eliminate eight on-street parking meters on local roads. Second Street will gain an eastbound right-turn lane at Mineola Boulevard.
Lalezarian has agreed to set aside 27 apartments for workforce/next generation/first responder housing. New York State requires multi-family developers to set aside at least 10 percent of a proposed property for affordable workforce housing.
The agreement with the village board also states a public plaza will be the centerpiece of the Village Green, featuring outside seating and a fountain.
PILOT payments negotiated with the IDA for Lalezarian’s 250 Old Country Rd. start at $9,137 in 2015 and increase to $160,220 in the final year in 2034. For the nearby Mineola Modera, there’s $68,621.38 in lieu of taxes due next year, with $120,328 due in 2034. PILOTs for Hudson House in 2015 and 2034 are $12,471.76 and $21,869.30, respectively.
The school district stands to receive $25.1 million over the next 20 years from PILOTs in other developments.
Some residents requested a second public hearing on the PILOT for the latest Lalezarian project. After the hearing, Kearney said he doubted there would be a second hearing and expects the IDA board would render its decision on the Village Green within 45 days.
