Tag Archives: istar

Question: Would you be interested in joining a lawsuit on behalf of the taxpayers against iStar?

One resident (whose name will probably be identified if and when he comments) is very interested in bringing on lawsuit against iStar, for what he calls “bait & switch tactics by iStar against us taxpayers.”

Basically, iStar first tells us they need to build these towers an unprecedented height in order for it to be sustainable. After that was granted, iStar pulls the IDA card looking for tax abatements, basically saying they need these breaks or they can’t build….. but they should have told us that when they first announced this development, no? Anyway, this IDA request came as a major shock to many residents still trying to survive in our post-Sandy city.

While this is all talk for now, how many of you would seriously be interested in joining and/or even contributing to a lawsuit on behalf of the taxpayers against iStar? Raise your hands.

scaleofjusticeLBNY

 

 

Long Beach block burdens community [Op-ed]

I was given permission by Neal to share a letter he wrote that was originally published in Newsday regarding iStar/IDA:

Long Beach block burdens community

I was deeply troubled that the entire membership of Nassau County’s Industrial Development Agency did not attend the meeting held to obtain taxpayer feedback on the request by iStar Financial Inc. and AvalonBay Communities Inc. for tax breaks [“Tax break tangle,” News, June 4].

Speakers were told that the IDA would receive a transcript of the meeting on the proposed $273 million luxury apartment and retail project on the Superblock in Long Beach. However, it undermines the credibility of the agency to mediate between the community’s concerns and high-powered, big-money players. The $128.6 million in tax breaks for this developer would leave the average Joe and Jane making up the difference.

While the IDA members may in fact peruse the transcript of people’s comments, they will not be able to feel the passion of the speakers who described what we believe is a bait and switch. The developers obtained a controversial variance to build what many consider inappropriately tall and massive buildings by touting the tax benefits that would be realized by Long Beach and the county.

The developers assured the community that they were fully capitalized to begin the project immediately. Now we learn the truth: that the burden of providing municipal services for their tenants would be placed on the rest of us.

Neal J. Monteko, Long Beach

Don’t forget, iStar recently took out a full page ad in the LB Herald defending the tax abatement request. Karl Frey, Executive Vice President of iStar even asked us to email him our questions and concerns: kfrey@istar.com. Of course, you can always email Nassau County IDA or call Ed Mangano while you’re at it.

What’s the status of all this? Just rumors with no merit.

iStar took full page ad in current issue of the LB Herald

iStar took full page ad in current issue of the LB Herald. Below is the gist of the ad, but PLEASE GO OUT AND BUY THE LB HERALD! This is in the current issue.

PERCEPTION…
iStar’s Long Beach Wayfarer project will pay no taxes for 25 years.
REALITY….
Long Beach Wayfarer project will pay 41.1 million in taxes in taxes over the next 25 years– $25.1 million more than if the property remains vacant vacant.
The project is currently the 6th largest tax payer in the City of Long Beach.
In 25 years, the project will pay 5x more than the than the next largest tax payer and will continue to do so year after year.
We want to be an outstanding corporate citizen, neighbor and frien. Should you have any questions or concerns please email me at kfrey@istar.com
iStar   Karl Frey, Executive Vice President, iStar
Richard who send this in adds the following: “Your loyal followers might want to send letters to the editor and take Karl Frey up on his e mail request.  They conveniently omit the  $125 million dollars they don’t want to pay, and that they grieved their taxes of a million dollars and got them reduced to $500,000. They use that as the base for the taxes they will be paying forward.”

 

“Who are the politicians really representing?” by John Bendo [Long Beach Herald]

superblock1John Bendo, president of the West End Neighbors Civic Association, wanted me to share this OP-ED piece that he wrote on iStar tax abatement and local politics. Long Beach Herald: Who are the politicians really representing?

“At the June 2 City Council meeting, residents wanted to know the council’s position on the tax breaks.

…..Council President Len Torres told residents that the council could not take a position, on the advice of legal counsel. But at a May 13 meeting of the IDA and representatives of iStar, the IDA passed a resolution stating, “The City of Long Beach … has expressed to the Executive Director and Chairman of the Agency its full support of the application and the granting of financial assistance with respect to the project.”

Regarding the mortgage recording tax exemption, the resolution says, “The [Local Development Corporation] will provide such exemption upon an application from the Applicant.”

Apparently the council has taken a position, but chose to keep it from residents.”

Read the full OP-ED at the Long Beach Herald: Who are the politicians really representing?

A reader is questioning some of the information in the ‘iStar’ Newsday ad

A few problems with iStars numbers and information, as touted in their ad this morning… [See ad here]

iStar touts economic activity will be created by new residents, but then projects 65% of these residents will come from Nassau County. Why would the county IDA provide incentive to create economic activity in one part of county by stealing said activity from another? On the county level, this “benefit” is greatly diminished.

iStar is saying they will pay $25 million more over 25 years than if nothing gets built. That is still $122,600,000 less than if they didn’t get PILOT.

With school: If the development brings in 25 kids to the school district, the cost would be minimum of $15 million. If 60% of taxes go to schools, they’re barely covering costs of students (that’s based on $24k/kid, which is low). I believe they project 28 kids.


Why hasn’t any other developer stepped in to take the superblock? [READER QUESTION]

Dear readers of Seabythecity:

Why hasn’t any other developer stepped in to take the superblock?

Who is the developer that is ready to step in and develop the superblock without the tax abatement?

Where is the lineup of competitive developers? I’m afraid the fact of their absence looms large.

You can say it has to do with Long Beach’s reputation, but like stock market investors real estate development is forward-looking and should take into account the changes from the past. Seriously a discussion of the merits if iStars presentation is in order as opposed to the catfight that will likely erupt tonight.

-A resident of Long Beach

superblock/avalon Real Estate Tax comparison. Plus I’m confused with the ‘PILOT schedule’

Using the document which I posted the other day [Long-Beach-Wayfarer-LLC-Shore-Road-2015.pdf], I’m attempting to make a RE TAX comparison between the supeblock and Avalon Towers. Also, the bottom of this post has the PILOT Schedule. Shouldn’t PILOT and No PILOT be switched? Can anybody make heads or tails with it?

[Please note: I cannot guarantee the accuracy of these numbers!]

Shore Rd LB Superblock  [Section: 59, Block: 116, Lot: 38]:

City of Long Beach 2014/15  =  $95,921.39 
School 2014/15 = $778,426.46
Nassau County General 2015 =   $129,447.48 ($64,723.74 x 1st/2nd half )

***Nassau County Assessed value of superblock = $21,212,900.

TOTAL = $1,003,795.33

Avalon Towers [Section: 59, Block 089, Lots 8-12]:

City of Long Beach  2014/15= $186,135.00
School 2014/15 = $691,662.00
Nassau County General 2015 = $133,089.00
Sanitation $535 per 109 apartments/year = $58,315.00

***Nassau County Assessed value of Avalon: $19,956,800.
***Long Beach assessed value of Avalon: $22,352,440.

TOTAL =   $1,069,201.00

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