Plans for assisted living center in East Northport revived as new developer gets early tax break approval

A senior care facility in East Northport that was proposed in 2022 is getting a second chance with a new owner and more tax breaks.

Silver Fox Senior Living Inc., a nonprofit developer, has taken up the project, seeking to raise the $112 million needed to construct an 86-unit building on Pulaski Road. Seniors would receive assisted living and dementia care services there.

Four years ago, Sunrise Senior Living Management LLC put forward the project but subsequently couldn’t raise the funds needed for construction. Sunrise Senior will run the facility while Silver Fox owns it. Both entities are based in McLean, Virginia, said Ben Rosen, director of real estate for Sunrise Senior.

The project’s resurrection comes as Long Island’s senior population grows.

There are more people 65 years and older in the region today than a decade ago – and seniors are projected to make up 25% to 30% of the total population in most counties in New York State by 2030, based on federal and state data.

On Thursday, the Suffolk County Industrial Development Agency granted preliminary approval for Silver Fox to receive $4.2 million in tax breaks. The aid consists of a sales-tax exemption of up to $3 million on the purchase of construction materials, supplies and furnishings plus $1.3 million off property taxes over 15 years.

In addition, the IDA’s sister organization, the Suffolk County Economic Development Corp., agreed Thursday to issue tax-exempt bonds for the entire cost of the senior living community and provide an undisclosed reduction in the mortgage recording tax. The EDC requires construction workers on the project to be paid the prevailing wage.

Four years ago, Sunrise Senior was granted $3.4 million in IDA tax breaks over 10 years but never received them because construction didn’t start. Sunrise Senior didn’t apply for tax-exempt bonds, county records show.

“The project was not built due to a lack of available equity and debt funding in the market,” states the IDA application signed by Silver Fox executive Arvind Ramakrishnan. “The project is now returning in a different structure, and with the support and benefits of the EDC and IDA, the project is expected to be financeable and capable of being built.”

Under the new plan, the facility would be 72,100 square feet over two floors, or 5,000 square feet smaller than originally proposed, with 86 units instead of 90. There will be no studio apartments, only one-bedroom and two-room apartments.

Philip Kroskin, head of real estate and investments vice president at Sunrise Senior, said, “The revised building reduces the total unit count and shifts away from shared apartments – meaning fewer residents, but each with greater privacy and a high-quality living environment.”

Of the 86 units, 64 will be for assisted living and 22 for dementia care.

A company spokeswoman said the rents and other charges haven't yet be determined but the company's website shows costs start at $6,500 per month for apartments at the Sunrise Living facility in Huntington Station.

Kroskin, the real estate executive, said the number of jobs to be created in Northport had fallen from 90 in the 2022 proposal to 64 because there would be fewer residents than first envisioned. The new jobs would pay, on average, $65,538, a year, according to the IDA application.

Kroskin said Sunrise Senior has 10 assisted living communities on Long Island and a home care service.

Construction of the East Northport location could begin later this year, and the facility could open in mid-2028, the IDA application states.

Besides the new building, a vacant farmhouse would be restored for use as a construction office and then a leasing office. There also will be a wastewater treatment plant.

The property had been home to Red Barn Farm in the 1970s and A&A Hay and Feed Inc. in the late 1980s. The site had been used for agriculture for more than 100 years as of 1975, Newsday previously reported.

Peter G. Ganley III, the IDA's acting CEO and executive director, said there's great demand for senior housing in Suffolk as the population ages. "This project would provide families with additional local care options while creating local jobs," he said.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.