Long Island City office building offering a 25-year tax exemption.

A 25-year-old real estate tax exemption the maximum offered by New York City - is resulting in significant tenant savings at Court Square Center, a six-story office complex in Long Island City.

The exceptionally large exemption - which features no tax increases related to renovation of the property for the first 15 years results from the building's location in a special development district, as well as its own comprehensive renovation program, according to Maria Rosenfeld, project associate for Stadtmauer Bailkin, LLP, specialists in real estate law and municipal incentives.

The area around Court Square Center was designated by New York City as a special district offering enhanced benefits to spur new construction and renovation, notes Rosenfeld. Since Court Square Center recently underwent a total rehabilitation program, the owners are able to obtain the tax exemption.

"Under the provisions of the programs," says Rosenfeld, "renovated buildings within the special district are taxed on the value for which they were assessed before improvements were made. As a result, tenants are protected against significant tax increases from construction improvements at the building."

Since most tax exemptions last anywhere from three to 15 years, the 25 year exemption period is a decided advantage, notes Gail A. Roseman of Sholom & Zuckerbrot Realty Corp., the building's exclusive leasing agent.

"Moreover," she adds, "Court Square Center's tax base is exceptionally low slightly under two-dollars per square-foot which is below any prime office building in the area."

Court Square Center is also eligible for the Energy Cost Savings Program offered through the Industrial and Commercial Incentive Program (ICIP), under which tenants of the building can receive as much as 30 percent reduction of their energy bills, according to Alan Zaretsky, a principal in the partnership which acquired the 135,000 square-foot complex at 45-18 Court Square in January, 1995.

"Since Court Square Center had been vacant for 12 straight months, businesses can also individually apply for the Con Edison Business Incentive Rate Program," he says. "This allows tenants to take 25 percent off their energy bills - an additional 55 percent savings."

A recent surge of activity has leased up a substantial amount of prime office space at the Court Square Center. Transcare, a major supplier of ambulance services that are utilized throughout New York City and the entire United States, has acquire an entire 20,000 square-foot floor for its headquarters.

"With a number of other pending leases due to be signed in upcoming weeks," notes Zaretsky, "the building is well on its way to becoming a significant office address in a redeveloping commercial and business center."

The renovation program was completed by the new owners before opening the building this summer. Included were major improvements to its three lobbies and two elevator banks - which permit a "building within a building" arrangement - as well as installation of new or reconditioned heavy power and floor loads, fully operable double-glazed windows, computerized tenant-controlled HVAC, passenger and freight elevator cars, and modern life safety systems.

Situated across from the Citicorp Tower and the Queens County Court House and its new public parking facility, Court Square Center is in close proximity to six subway lines. With the 59th Street Bridge, Midtown Tunnel, Queens and Northern Boulevards and the Long Island Expressway all located within four blocks, there is easy access to Manhattan, Brooklyn, Queens and both LaGuardia and Kennedy airports.

Panoramic views of the Manhattan skyline are provided from most office suites. New York City incentives such as tax exemptions, energy cost programs and NYNEX phone grids independent from Manhattan, a complete portfolio of NYNEX digital services and fiber optic lines are accessible, while a wide variety of nearby restaurants, banks and shops offer support services.