Metropolitan hails town's tax plan for business center.

The Town of Islip Industrial Development Agency has approved a 15-year property tax incentive program for a sprawling Suffolk County office complex, the Sunrise Business Center, Garden City-based Metropolitan Realty Associates LLC, owner of the property, announced.

The new property tax breaks will make the Sunrise Business Center at 3500 Sunrise Hwy, Great River, which also benefits from its inclusion in a New York State Empire Zone, more economical for prospective tenants than it previously had been.

The first part of the Islip incentive package, a Payment in Lieu of Tax (PILOT) program, lowered property taxes at the Sunrise Business Center and freezes them for five years. It then allows for annual increases of 3% a year for 10 years, beginning in 2012.

Taxes for the first year five years are just $1.62 psf, a huge competitive edge for tenants and prospective tenants in the complex, and will be less than $2.20 psf at the end of the 15-year tax program.

This benefit will save existing tenants and new tenants hundreds of thousands of dollars a year. Comparable office buildings in the area are taxed starting at around $3 psf and this cost is passed onto each property's tenants.

Equally as important to the initial savings, tenants in the building will know exactly what their tax obligations will be for the next 15 years. This is of tremendous importance in light of the increasing high percentage increase in real estate taxes tenants face every year.

Islip town also approved state and local sales and use tax exemptions on Metropolitan's expenditures for renovating and equipping the property.

Metropolitan is undertaking a multi-million dollar upgrade of the property, including a makeover of a mostly-gutted former warehouse at the site and an update of public areas of other buildings in the former defense electronics plant

"I appreciate all of the efforts of Town Board members and the Islip Town Industrial Development Agency, its board and staff, especially IDA executive director William Mannix, who have assisted us in gaining these important economic incentives for this outstanding site," said Joseph Farkas, president of Metropolitan Realty Associates.

"These incentives demonstrate that the Town of Islip is proactive in its efforts to retain existing jobs and attract new jobs to the area. These incentives will assist me in bringing this property up to its long-promised, but undelivered potential. I am sure the Sunrise Business Center will be a strong economic beacon in the Town of Islip as a result of its government partnership."

In addition to lower property taxes through the PILOT program, certified tenants in the building enjoy the benefits of being in a New York State Empire Zone, which include wage-tax credit, investment tax credit, Employee Incentive Tax Credit, Zone Capital Credits and New York State Sales Tax refunds. Asking rent in the complex start at $18.50 per square foot

Separately, Metropolitan closed on a $28 million acquisition and construction loan with GE Capital. Metropolitan purchased the 363,567 s/f, three-building property last September for over $20 million.

Leasing of the property is being handled by Ray Ruiz, Bruce Nelson and Marianne Dugan, all of the Woodbury, LI, office of CB Richard Ellis.