TOWN OF BROOKHAVEN - Brookhaven IDA

eport include that the housing market is still going down and doesn’t project it bottoming out
until 2013 or later.
Mr. Braun made a motion to grant a five year 100% abatement extension, then ratchet up or
down by 20% over the next 5 years, with a clawback provision that if Framerica sells or moves
in the next five years they will be liable for the full assessment. This motion was seconded by
Mr. Celauro and was unanimously approved.
Uncle Wally’s
Uncle Wally’s has roughly 170 employees and two locations on Long Island with their largest
one located in Brookhaven. They are recipients of one of the Economic Development Council’s
awards in the amount of $1.5 million. Ms. Scheidt explained the money awarded to Uncle
Wally’s: they received Excelsior tax credits, of which there are three components, one is the
Research and Development credit which is based on your annual expenditures that show on your
tax returns as R & D. There is an investment tax credit for what is shown as expended for
investments for capital construction. This credit is applied at the time of payment for the
preceding tax year, as is the job creation credit when you have fulfilled the job creation
requirements. If for some reason the tax liability is less than the credit, a check is cut for the
difference. One of Uncle Wally’s PILOTs is expiring shortly, the other in 2015. This extension
does not include the latter PILOT. Mr. Braun and Ms. Mulligan recommend granting a seven
year 100% extension on PILOT benefits for the original exemption, then ratchet down by a third
each year. This is similar to other incentives granted by the Suffolk County and Babylon IDAs.
Uncle Wally’s is expected to expand as well. Mr. Braun has examined the company’s financials
and can attest to the hardships they have faced. Mr. Celauro suggested offering the same
package to Uncle Wally’s as is being offered to Framerica. This 10-year PILOT would be
structured as 5 years at 100% abatement, then 20% increases for the remaining 5 years. Mr.
Weir added that if the project does not maintain the required number of jobs, the PILOT amount
can be raised at the Board’s discretion. Uncle Wally’s has stated they would add more jobs and
increase their investments in the facility. There was further discussion about maintaining
consistency in granting extensions, with consideration allowed for a company retaining jobs
versus a company retaining and creating additional jobs.
Mr. Celauro made a motion to offer Uncle Wally’s a 10 year extension of their property tax
abatement, with five years at 100%, then increasing by 20% over the remaining five years.
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