By GREGORY ZELLER //
A 22-year payment in lieu of tax package approved by the Nassau County Industrial Development Agency will help a new luxury hotel develop in Jericho.
The Jericho Plaza Hotel – a 113,815 square foot hotel and conference center on approximately six acres of underused land at the intersection of State Route 25 and the Long Island Expressway – represents an investment of $ 56 million by the Jericho-based consulting firm, Oxford Hospitality USA and other investors.
The 5.88 acres it will be built on is currently covered by a largely vacant parking lot, a use that promises just $ 9.2 million in property tax revenue over the next two decades and more. While saving millions of dollars in taxes for landowners – and thus triggering the construction project – the 22-year PILOT program will still generate $ 14.9 million in total tax revenue, according to the IDA.
It will also allow JP Optionee – the LLC that will develop, build and operate the new Jericho Plaza hotel – to create 52 full-time equivalent jobs, in addition to about 231 jobs during the construction phase.
In total, the project is expected to generate a regional economic impact of $ 86.4 million, with significant increases in tax revenue going forward, according to IDA.
Noting that the Long Island hotel industry “has been hit hard by the COVID-19 pandemic,” Nassau County Industrial Development Agency president Richard Kessel said on Tuesday that the new hotel “represents a significant renewed confidence in the sector’s rebound at the dawn of 2022. “
“The hotel will also include a conference center, bringing much needed equipment to Jericho’s business district,” Kessel added, trumpeting “an attractive new facility where entities near and far can congregate, spend money and generate a new economic activity “.
Nassau County Industrial Development Agency chief executive Harry Coghlan agreed that “hotels and conference centers are major economic engines.”
“When you find projects on the verge of success, like this one, the short-term tax benefits are quickly eclipsed by the long-term financial gain,” Coghlan added. “Without the help of NCIDA, a project like this might never see the light of day.
“And our residents would ultimately be the ones who miss the opportunities to be created. “
Oxford Hospitality USA Managing Partner Paul Amoruso confirmed Coghlan’s assessment noting that the Jericho Plaza Hotel project “would not be economically feasible” without the tax incentives from IDA.
“We are grateful for the approval of this project by NCIDA, [which] will provide new luxury hotel accommodations, spa, premier conference facilities, fitness center, indoor pool, upscale restaurant, new jobs and many additional economic benefits for Nassau County Amoruso said in a statement. “We are launching the project and creating a welcome asset for the region. “