Suffolk manufacturer Island Facades proposes new $30 million plant in Calverton

A Calverton manufacturer has proposed a new $30 million plant to expand its operations on Long Island and create 100 new jobs.

Island Facades, which builds prefabricated facades for commercial construction projects, received approval for tax breaks last week from the Town of Riverhead Industrial Development Agency.

The company said in its IDA application that the new building, on vacant land at 1001 Scott Ave., would grow its existing operations "in lieu of relocating these operations to Tennessee." The company wrote it had also explored an alternative site in Pennsylvania.

Island Facades is seeking state economic development aid from Empire State Development before it moves forward with construction, said Kyle Birchall, the company’s chief commercial officer. He declined to comment further while the company seeks state support.

The project would expand Island Facades’ 50-acre manufacturing campus through a new 70,000-square-foot plant on 10 acres within the Enterprise Park at Calverton. The company said the project would increase its local workforce by 100 to 500 jobs and create 50 construction jobs,

"I think overall it’s a net win," James Farley, the IDA’s chairman said at last week’s public hearing.

Island Facades has performed work for major commercial construction projects including a new wing of the American Museum of Natural History in Manhattan and Barclays Center in Brooklyn, according to its website.

The addition of an eighth facility in Calverton will help the company accommodate demand for a major construction project in Nashville, Tennessee, Ed Harms, the company’s CEO, said at a September IDA meeting.

As the company gains more business in the South, its Calverton plant isn’t ideally located, Harms said, and the cost of real estate, insurance and utilities on Long Island are higher than in other states.

Financial assistance would enable Island Facades to grow in Calverton, where local employees have built its business, Harms said.

"Riverhead has been our home," he said in September. "It would be ideal for it to continue to be our home. However, with that home comes some series of financial challenges." 

Island Facades sought a $2.2 million sales tax exemption and a nearly $109,000 mortgage recording tax exemption, according to its application. The company also requested a 10-year payment in lieu of taxes agreement, according to its application. 

Current taxes on the vacant land are about $37,000, IDA officials said at the public hearing. Island Facades would pay about $111,000 in lieu of taxes in its first year in operation, a 50% tax abatement, and that abatement would phase out over time, with the annual payment rising to $201,000 in the 10th year.

The combined total of payments over 10 years was not clear from documents posted to the IDA's website. 

In 2019, the IDA approved about $4 million in tax breaks toward a separate expansion at its Calverton campus. The company has fulfilled its obligations to create 80 jobs in connection with that project and made timely payments in lieu of taxes, Lee Mendelson, a Riverhead IDA board member said at the public hearing.

Robert Hagan, superintendent of Riverhead Central School District, said at the public hearing the project could provide opportunities for students to stay and work on Long Island.

He said he had no objection to Island Facades’ project but asked the board to consider the effect of tax abatements on school tax collections when evaluating future projects, particularly new housing proposals.

"As these projects do come up, respectfully, just consider how school taxes sometimes are raised," he said. 

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.