A luxury hotel on the site of the former Grassmere Inn in Westhampton Beach has been awarded $690,512 in tax breaks by Suffolk County.
In an unanimous vote last week, the county’s Industrial Development Agency gave final approval for the tax aid to Melville-based developer WHBH Real Estate LLC in return for its investment of $11.6 million in the property and pledge to create about 14 jobs over two years.
The amount of property-tax savings is $224,587 or 22% over 10 years. But even with the tax aid, the project will generate nearly $600,000 more in property taxes over the next decade than if no improvements were made to the historic inn, according to an analysis by the Brooklyn-based consulting firm National Development Council.
