Babylon IDA offers tax incentives along 110 corridor
by Carolyn James
 | | Graph at left shows the seasonally adjusted labor force statistics in the Northeast region from 2000 to 2006. At right, graph shows the total compensation (not seasonally adjusted) in private industry in the Northeast from 2002 to 2006. The two show the disparity between the number of people employed, which is growing, and compensation or salaries, which has declined. Source: U.S. Department of Labor, Bureau of Statistics |
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While unemployment is at an all time low nationwide, the average salaries have declined, raising concerns, particularly here on Long Island where housing and taxes eat up a larger portion of the average income than in most urban areas throughout the United States.
"When you look at the figures you realize we are looking at the perfect storm and that if we don't address what the statistics are telling us our economy will be in serious trouble," said Babylon Town Supervisor Steve Bellone.
One way to overcome some of the predictors for economic failure is to encourage high tech businesses that pay high salaries to Long Island and in
Bellone's case, to Babylon. As a result, the supervisor unveiled an economic incentive program to encourage the development of a Class A office building along the Babylon portion of the Route 110 Corridor. Under the proposal, the Babylon Industrial Development Agency (IDA) will offer an unprecedented 100 percent abatement for all real property taxes for the construction and occupation of high end office buildings in the Corridor.
"The Route 110 Corridor is Long Island's main stree for high tech, bio-science, manufacturing, industrial and financial companies and jobs," said Bellone. "With this unprecedented incentive package, we are hoping to spur construction and occupancy of this type of office space in the town in order to attract thousands of new high-wage jobs to were largest in professional and business services (+2,400), educational and health services (+2,300), natural resources, mining and construction (+1,300), leisure and hospitality (+1,000), and other services (+500). There were also job gains in information (+300), and trade, transportation and utilities (+100). Employment declined over the year in manufacturing (-1,500) and financial activities (- 1,000). The August unemployment rate of 4.0 percent was unchanged from August 2005.
Statistics show, however, that salaries did not fol low the same upward pattern. Compensation in private industry dropped between 2001 and 2003 on Long Island, rose again between 2003 and mid-year 2004 and then significantly declined until it began a modest upswing late last year, leveling off since then.
The program will be administered through the Babylon IDA's Payment in Lieu of Taxes (PILOT) program. It will eliminate all real property taxes in the first year of the ten-year PILOT plan, and phase the payments in evenly over a ten-year period.
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