Tanger Outlets at the Arches in Deer Park is seeking an eight-year extension on the tax break it was given during its development, according to a Newsday report.
When opened in 2008, the shopping center was given a 15-year tax abatement through the Babylon Industrial Development Agency due to its designation as a tourist destination. As part of the agreement, Tanger Outlets would initially receive a 60 percent tax cut, with a 6 percent increase annually until it reached full taxation. According to the report, the center’s owner, Deer Park Enterprise Llc, is now asking to extend that deal for an additional eight years in order to slow the increase to 2 percent each year.
David Blumenfeld of Syosset-based Blumenfeld Development Group Ltd., a partner in Deer Park Enterprise, told Newsday that the original 6 percent is an increase of the center's assessed value, which resulted in a tax increase for 2011 to 2012 of nearly 18 percent, which he said is unaffordable cost for tenants.
According to the report, the Deer Park outlets are 78 percent occupied with about 100 businesses and 20 of them up for lease renewal next year.
Under the original agreement, over the next two years, The Arches would pay $7.9 million in taxes. Under the extension, that amount would drop to $7.2 million, Newsday reports.
The tax extension may affect the Deer Park School District as well. According to the report, the extension would translate to about $482,000 less in taxes to the district over the next two years.
The Babylon Industrial Development Agency is expected to vote on the extension this month.