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Home Depot is lining up a major distribution hub in Yaphank — and seeking tax breaks to do it.
The home improvement giant is the subtenant on an application that has been filed by a developer with the Town of Brookhaven Industrial Development Agency for a $157 million warehouse and distribution center on Sills Road, according to a March application made to the IDA.
Within the application, Home Depot is seeking sales and use tax relief on $11 million it would spend to outfit the space once construction of the 414,000-square-foot facility is complete. The tax relief would amount to about $481,250, the application says.
The plan calls for construction of a 414,000-square-foot facility and a 15-year lease.
The application was submitted by Brookhaven Logistics Center, LLC — an affiliate of Kansas City-based NorthPoint Development — for a facility to rise on a 50.64-acre parcel.
The IDA had previously supported the construction project. The tax relief application requires a public hearing before the IDA board can vote on the proposal, IDA Chief Executive Lisa Mulligan told Greater Long Island.
Asking for a half-million in tax breaks
Home Depot is seeking about $481,250 in sales tax exemptions to outfit the space — based off of the tenant improvements that are estimated to run $11 million, according to the application.
With IDA approval, Home Depot would lease the facility for 15 years at $23.40 per square foot, with a 1.75 percent annual escalation. The filing indicates that the applicant wants to begin construction in May and have Home Depot in place by May 2027.
The facility is described in the application as a “warehouse and distribution center utilizing light rail.”
Generating 200 full-time jobs, company says
“Home Depot is making a significant investment in updating their supply chain with state-of-the-art distribution facilities throughout the U.S.,” Kevin Reddick, Home Depot’s senior director of tax counsel, wrote in the filing.
Reddick said further that the proposed distribution center would serve customers with same-day and next-day delivery specializing in big and bulky building material.
“In addition to the construction jobs and 200 new, full-time jobs generated by the project,” he said, “residents and local construction companies in the region will benefit from an enhanced delivery service of the tools and materials needed on a same-day or next-day basis, where and when needed.”
The proposed site is on the northern edge of a larger swath of undeveloped land south of the Long Island Expressway.
Greater Long Island has reached out to Brookhaven IDA Chief Executive Lisa Mulligan for comment and will update this story with her response.
Top: Photo by Oxana Melis.
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