Sand City Brewing Co.’s plans to open a second brewery in downtown Lindenhurst just took a huge step forward.
The Babylon Industrial Development Agency on Wednesday voted unanimously to approve property tax breaks that will save the company an estimated $410,000 over 12 years.
Sand City, originally of Northport, is looking to bring a brewery and tasting room to the vacant CVS Pharmacy building at 150 South Wellwood Avenue. The company plans to sign a long-term lease for the building.
“The IDA is very excited to help the village usher in a new era for its historic and lively downtown,” said Babylon IDA CEO Tom Dolan. “This is a large vacant building, which has been an eyesore in the heart of downtown Lindenhurst for years, and now a successful business in a blossoming industry with a proven track record is looking to make a significant investment in our community.
“And on top of it all, we are adding jobs to the local economy, building the tax base while also attracting people from near and far to come and see all the great things that Lindenhurst has to offer.”
The IDA vote on the tax abatements happened Wednesday morning at Old Town Hall in Babylon Village.
GreaterBabylon in April broke the news of Sand City’s plans to open in Lindenhurst. At the time, co-owner William Kiernan told us Lindenhurst would serve as a second location, with the other in Northport.
“We love Lindenhurst and think it’s a great town to continue to grow our business with a second location,” he said.
The tax abatements package lasts for 12 years. Instead of paying full taxes on the property, which is currently close to $100,000 a year, Sand City would make payments in lieu of taxes — at a discount.
In the first year, the brewers would pay 40 percent of the full property tax bill, increasing by 5 percent each year until they’re paying full taxes on the property in their 13th year in operation.
Taxes on the property 13 years from now are estimated to be about $120,000.
The company will still be paying about $932,000 in property taxes over the 12-year period, according to the IDA.
Lindenhurst Village Trustee RJ Renna called Sand City’s interest in Lindenhurst “a pivotal moment for our village’s revitalization.”
“We are finally attracting new businesses to our downtown and filling longtime vacancies,” he said. “The village couldn’t be happier to have Sand City. They are making a huge investment in our community and we are excited for the many restaurants and shops that will benefit from their establishment.
“Additionally we have to thank the IDA for helping make this project possible.”
The IDA package also includes $84,000 in county sales tax breaks for equipment and construction materials.