Supervisor shoots down approved Suffolk IDA tax breaks for enclaves

SOUTHOLD, NY — The Suffolk County Industrial Development Agency has approved $2.7 million in tax breaks for the proposed $43.9 million project, “The Enclaves.”

For months, residents have been clamoring against the project, citing concerns about the impact on Southold Town's bucolic canvas.

Last week, the IDA awarded tax financial assistance, including $1,818,078 million in sales tax credits for building materials and equipment, $245,911 in mortgage registration tax credits and $705,208 saved with a 15-year PILOT program or payment instead of taxes. The PILOT represents a 36 percent savings in taxes over the term, the IDA said.

According to a release from the IDA, plans for the Enclaves, located at 56655 Route 25 on the former site of The Hedges bed and breakfast, are for “a world-class, full-service hotel” on 6.7 acres of existing land. The 72,000+ square foot hotel will include 40 guest rooms, 4 cottages with private accommodation and hot tubs, indoor and outdoor pools, a spa with four treatment rooms, exercise rooms, two restaurants and 4,170 square feet of event and meeting space. .

Southold Town Supervisor Al Krupski spoke to Patch about the Suffolk County IDA tax abatement: “The Suffolk County IDA's decision on the tax abatement for the Enclaves hotel program demonstrates their inability to understand the economic impact on a community . Giving developers tax breaks makes residents' taxes go up — as the payment for the increased demand for services falls not on the developer, but on the city's residents.”

He added: “This is corporate welfare, benefiting a few, costing the rest of us. They clearly didn't consider any input from the city or from the public hearing they held in the city.”

Southold's planning board conditionally approved the project in June, after years of public debate and outcry.

The IDA is authorized by New York State municipal law to extend financial assistance in the form of possible exemptions from New York State sales tax, property tax and many other expenses.

In October, the Suffolk County IDA preliminarily approved a transaction to help Enclave Southold, LLC build a full-service hotel located on the site.

With SCIDA's support, the Enclave will renovate the historic 3,764-square-foot home and begin new construction on a 72,979-square-foot hotel on the property.

The $43 million project creates a hotel that will house a wide range of amenities, including two restaurants, a spa with various treatment rooms, cottages and more, according to a release.

“This project checks all the boxes; it will help meet a growing need for quality lodging options on the North Fork, significantly increase tax revenue and create jobs, all while keeping with the aesthetics of the surrounding area,” said Kelly Murphy, actor. executive director of Suffolk County IDA; “We are proud to lend our support to this project that will provide real economic growth for the region as well as local businesses, while boosting Long Island's tourism sector.”

“The historic house on the property will be converted into a 74-seat restaurant that will operate in conjunction with the hotel. A multimillion-dollar work package, including a wastewater treatment plant, will be installed as required by the Suffolk County Department of Health Services and the city,” the statement said.

In 2015, the historic property was purchased by Enclave Southold director Jonathan Tibett with the intention of “realizing his greatest dream” that Southold would one day be home to a full-service hotel, the IDA said.

With Long Island's extensive options in wineries, farms, fishing, beaches and other tourist attractions, there is still a need for additional high-quality accommodations for travelers and visitors to Long Island's East End, the IDA said, adding that, according to the Tourism Study and Demand Analysis prepared by HVS Consulting & Valuation, it is expected that more than 90 percent of hotel guests will come from countries beyond Nassau and Suffolk counties.

“We are incredibly grateful to have the support of the Suffolk County IDA for the construction of the Enclaves Hotel and Restaurants project,” said Edward Glackin of Enclave Southold, LLC. “When the property was originally purchased, it was the home of Hedges Bed & Breakfast with dreams of one day being home to a luxury hotel for guests to enjoy on the North Fork of Long Island. Due to the support of the Suffolk IDA, this goal Creating a world-class hotel and additional accommodation for those visiting our region will now be possible.”

Project officials stated that with tourism focused on the North Fork, “there remains a high demand for local lodging for both leisure and business tourism, despite limited lodging supply. The Enclaves will help meet a portion of the demand for expanding the accommodation options for visitors to this area.”

In addition, the IDA said, the 51 new full-time employees created during the first two years of this transaction will have a total annual payroll of $2.3 million. Renovation, fabrication, finishing and installation of lighting and other equipment will be performed almost exclusively by Long Island-based firms and suppliers, the group added.

The project will also increase tax revenue from the site threefold in the first year alone, bringing in more than $1.27 million in additional tax revenue over 15 years, SCIDA said.

With increased tax revenue and the support and use of local Long Island vendors, the project is estimated to provide a total public benefit of more than $8.5 million, SCIDA said.

A discussion of the project by the planning commission in January 2022, via Zoom, gave residents a chance to voice their concerns, and many pleaded with those involved to consider the impact on the community.

In December 2021, the Southold Town Board of Zoning Appeals granted conditional approval to The Enclaves.

Discussing the plans in 2022 via Zoom, project partner Andrew Giambertone outlined the vision for the former Hedges B&B on Main Road.

Giambertone said the existing Italianate Victorian house will be converted into a 74-seat restaurant open to the public. a private drive will cross the property and a large fence will maintain privacy and limit visibility of the hotel from the road.

“The idea was to make the hotel as inconspicuous as possible,” Giambertone said.

Public opposition

Southold residents turned out in force in October 2021 for a Board of Zoning Appeals hearing on the project.

Time and time again, residents pleaded with the ZBA not to grant the special exception for a project they said would irrevocably change the character of Southold Town forever.

“Just say no!” said one resident.

Some residents have taken to social media with concerns about environmental issues, noise, quality of life and the impact on small daycare businesses in the area. a petition was created, “Opposition to the Enclaves Hotel in Southold.”

The proposed restaurant and hotel will operate year-round, with hours of operation consistent with such uses.

The application was also discussed at a 2017 Southold Planning Board meeting.

At an earlier meeting, Angelina McKenna said she and her husband had come to express concerns “about this horrible project being proposed. The town of Southold prides itself on its heritage and strong sense of community,” she said. “Our roads cannot take more, nor do we want more. Who will benefit from this outlandish, outrageous proposal?”

Also, McKenna said, there is already a shortage of affordable housing. There will be nowhere for the facility's employees to live, meaning they will all have to move.

“We used to say, 'Save what's left,'” he said. Terry Walker of Southold. “Now it's 'Save what's left after I get mine.' That's enough. We are the residents. We matter.”

Paul Romanelli, who lives in Cutchogue and owns a business on Main Road in Southold, spoke in favor of the project, saying there is a need for more space at the hotel and the traffic studies are accurate. he doesn't think traffic will be a problem. He pointed to other projects from the developers, such as the North Fork Table and the new Southold General. The goal of the comprehensive plan was to establish new businesses in village centers and stimulate the economy, he said. “We got what we wanted,” he said, adding that B&Bs and hotels are full year-round.

Giambertone spoke to Patch in 2017 about the plan's vision.

He said the aim was to create a “high quality” restaurant. “We hope to create a unique environment. The town of Southold seems to be drawn to bringing more upscale wine tastings to the wine region.”

The owners of the property, Giambertone said, are local residents. “They're trying to preserve the bucolic nature of Southold and not turn it into anything else. They love what Southold is, they love the relaxed atmosphere. And they see the need for the hotel, they see the need for this opportunity.”

The need for a hotel exists, he said. But neighbors shouldn't worry about a noisy facility, he said. The goal is to provide guests with a place of “rest and privacy where they can enjoy what is beautiful about Southold — which is peace and quiet,” Giambertone said at the time.