Jun 05, 2015

Suffolk IDA Backs Construction Company’s $2.1 Million Expansion

Construction company gets tax breaks to expand

Suffolk County Thursday backed a construction company’s move from Bohemia to Hauppauge with up to $156,500 in tax breaks over 10 years.

J. Anthony Enterprises Inc. plans to purchase 175 Engineers Rd. in Hauppauge, more than doubling the size of its office and warehouse.

The company has been housed in 8,200 square feet of space at 1606 Ninth Ave. in Bohemia since 2007.

The $2.1 million move will boost J. Anthony’s permanent workforce from 14 to 27 people within two years, the company said. Workers earn, on average, $90,612 per year, records show.

The business also employs between 25 to 50 unionized workers during the building season.

“We have had opportunities to move our business elsewhere,” said Joseph Knesich, president and owner of J. Anthony, referring to New Jersey. “However, I live here, I work here, and I want to stay here.”

The company specializes in heavy construction and roadwork for New York State, local school districts, Nassau and Suffolk counties, and the towns of Babylon, Smithtown, Hempstead and North Hempstead, among others.

Knesich said customers increasingly want contractors to have all of the equipment and materials for a project on hand before breaking ground. That means more storage space is needed, he told the board of directors of the Suffolk County Industrial Development Agency Thursday.

In his application for tax breaks, Knesich said the expansion project would add $4 million to J. Anthony’s annual sales in a few years.

The IDA board unanimously approved an incentive package that includes $14,700 off the mortgage recording tax and a sales tax exemption of up to $17,250 on the purchase of materials and equipment to renovate the Hauppauge building. The property tax savings will be $122,400 over 10 years.

IDAs have been criticized in the past for granting tax breaks to businesses that relocate within a county or town.

J. Anthony’s 7-mile move merits help, said IDA executive director Anthony J. Catapano, “because part of our mission is to build the Long Island economy by helping business owners who live here and want to expand their companies here. This project will support the creation and retention of local jobs.”