Amazon has paid back about $2.5 million in tax breaks after failing to deliver on its promise to create 150 new jobs within three years at its recently opened Syosset warehouse, officials said.
The online retailer delivered a check for $2,466,268 as instructed by the Nassau County Industrial Development Authority, said the agency’s president, Richard Kessel.
Approximately $1.75 million is a sales tax credit that will be used to purchase construction materials, furniture and fixtures for the 204,000 square foot warehouse located at 200 Miller Place, north of Long Island Freeway. Mortgage records tax savings are $712,500, he said.
The facility cost $72 million to build.
The tax incentives are part of an $11 million aid package awarded by IDA to Amazon and warehouse owner Syosset Park Development LLC in March 2021. In return, Syosset Park agreed to additional environmental cleanup of the former Cerro Wire factory site, and Amazon promised to: Create 150 warehouse jobs.
When Amazon decided to close one of its two warehouses in Bethpage and move more than 500 jobs to Syosset and other facilities in the metropolitan area, it pegged about $8 million over 15 years. The entire package including property tax savings was forfeited. Reported in June.
In August, the IDA Board ruled that the transfer was not a new job and did not meet Amazon’s obligations. The Board decided to withdraw the tax incentives previously used.
“I’m glad we did this,” Kessel told Newsday on Tuesday.
He added: No lawsuits were filed, so we hope to see future Amazon developments in Nassau County. ”
“Amazon is working to: [its] Due to the importance of Amazon’s partnership with IDA, Nassau County, and the Town of Oyster Bay to meet current work and the needs of customers in Nassau County, Amazon has aggressively approached IDA and is considering dissolving IDA. did. [tax aid] Agree in good faith and in the best interests of all parties.Amazon full refund [tax] Profit received to date. ”
This is the second time an Amazon warehouse on Long Island has lost an IDA tax break.
In May, developer Hearts Mountain Industries announced that it would give up nearly $5 million in tax aid over 20 years for its Melville warehouse rented to Amazon.
The developer said he wasn’t sure Amazon would be able to deliver on its promise to create 175 jobs within two years. Freedom of Information Act. It cost him $52.8 million to build the warehouse.
In either case, IDA’s duties do not include the hundreds of van drivers hired by smaller shipping companies to deliver Amazon packages “last mile” to customers’ doorsteps. Hmm.
In addition to the two affected warehouses, Amazon is planning or opening similar facilities in Bethpage, Carl Place, Holbrook, Melville, Shirley East Yafunk, Westhampton Beach and Woodmere. Some, but not all, countries receive IDA assistance.
Each warehouse employs about 100 people, and package handlers earn an average of more than $19 an hour, an Amazon spokesperson said Wednesday.
James T. Madore writes about Long Island business news, including economics, development, and the relationship between government and business. He was previously the Albany Bureau Chief.
