Public Storage Inc., a publicly traded self-storage real estate investment trust (REIT), received tax breaks last week from the Nassau County Industrial Development Agency (IDA) in its quest to build a $10.4 million facility in Hicksville, N.Y. The IDA helps businesses relocate, expand and finance new investments nationwide.
Public Storage plans to replace a vacant office building at 800 S. Oyster Bay Road with a 128,000-square-foot storage facility. The project was lauded by Joseph J. Kearney, executive director of the IDA, who said it will “serve an unmet need in the county,” according to the source.
The IDA granted the REIT a $327,000 sales-tax exemption and a property-tax break that freezes the tax rate for three years, followed by a 1.66 percent increase in each of the next 12 years, the source reported. The storage location is expected to generate two full-time jobs that will pay about $37,000 annually, excluding health-insurance benefits.
Public Storage is the fifth self-storage business the IDA has assisted. Similar tax breaks have previously been awarded to storage projects in Elmont, Garden City, Hicksville and Massapequa, N.Y., according to the source. Safeguard Self Storage was given a $333,141 sales-tax exemption and similar property-tax breaks last year.
The awarding of tax breaks to self-storage operators has received some criticism from labor groups, such as Long Island Jobs with Justice, which argue such breaks should be reserved for businesses with large workforces.
"Oftentimes, these are blighted buildings being replaced by new development that doesn't use many municipal services or the school district,” Kearney said, adding that consumer demand for self-storage remains strong within the county.
The IDA consists of a team of professionals whose mission is to promote the economic welfare and prosperity of Nassau County, according to its website. The organization works with partners to provide additional services from loans to tax credits to workforce training.
Based in Glendale, Calif., Public Storage has interests in 2,258 self-storage facilities in 38 states, with approximately 146 million net rentable square feet. Operating under the Shurgard brand name, the company also has 193 facilities in seven European countries, with approximately 10 million net rentable square feet.
Sources:
- Nassau County Industrial Development Agency: Website
- Newsday: Nassau IDA Gives Tax Breaks to Storage Company that Will Create 2 Jobs
