Proposed Melville extended-stay hotel wins $10.6 million in tax breaks from Suffolk County

The developer of a luxury extended-stay hotel proposed for the Route 110 corridor in Melville has won preliminary approval for $10.6 million in tax breaks over 15 years, officials said.

The board of the Suffolk County Industrial Development Agency voted unanimously to approve the incentives for the Beechwood Organization, which is best known for constructing more than 5,500 houses on Long Island.

Jericho-based Beechwood wants to build a four-story, 299-room hotel at 125 Spagnoli Rd. The Ferncliff Hotel, with a price tag of $137.5 million, would open in August 2027 and have at least 22 employees, the officials said.

In return for the jobs and investment, the IDA aid includes a sales-tax exemption of up to $5 million on the purchase of construction materials, equipment and furnishings as well as $5 million off property taxes for 15 years, or a 29% savings.

“We need the benefits in order to move this project forward … Without [them], I don’t think that we can,” said Steven Dubb, a Beechwood principal, citing the higher interest rates and tougher lending environment than existed four years ago when the hotel was first discussed.