Ready to Move into that new LIE Complex? The Tax Issues Appear Settled.

When we left RXR Realty's new North Hills residential development on the edge of the Long Island Expressway last month, all that was left to do was adjust a parking lot adjacent to one of the  buildings housing the project's 244 units.

Not so fast.  The Island Now site just posted an article that the controversy over tax breaks, one of the things that has slowed the project's developments over the past six years, had to be addressed again today at a North Hills Village Hall hearing.

Midtown North Hills LLC, RXR Realty’s new condo and rental unit complex, had stepped down from its original tax-break demands, and decided to seek a seven-year agreement for payment in lieu of taxes on 60 units in the development that the company plans to lease for one or two years.

Originally, RXR applied for a 20-year payment in lieu of taxes agreement on 124 rental units.

Today, the Village of North Hills, the Great Neck School District and the Herricks School District signed off on the proposal. 

The North Hills mayor told Island Now that he is philosophically opposed to the Nassau County Industrial Development Agency application RXR made because it is for rental property, but said he could accept the lower number of units. 

"I had to compromise my principles so they can get this built," he said.

The report says that the compromise included putting the units back on the tax rolls once 30 of them are sold. The number of rental units was a sore spot for some local interests, the article suggests--the towns and school boards didn't like it, but the Nassau County Industrial Development Agency said it needed the commercial aspect to back the deal.

RXR Realty is based in Uniondale and has more than $4 billion in holdings.  It also has asked the county for an estimated sales tax exemption of $3.3 million and an estimated mortgage tax exemption of $1.5 million, the article reports.

The Island Now article can be found HERE.

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