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October 2008

GABRESKI BUSINESS AND TECHNOLOGY PARK
Expected to Attract Film Production,
Homeland Security, “Green” and Tech Industries
Suffolk County Selects Rechler Equity Partners as Developer

STORY BY MAUREEN TRAXLER
Photo by Miranda Gatewood

After decades mired in quicksand, the development of the Hampton Business and Technology Park at Francis Gabreski Airport is poised to move ahead. Suffolk County Executive Steve Levy announced recently the selection of Melville-based Rechler Equity Partners to redevelop and manage the 53-acre park at the northwest corner of the 1,453 acre County-owned airport adjacent to County Road 31 in Westhampton Beach. The project is slated to begin in spring 2009.

“We hope to develop a hotbed of high technology development for alternative energies, homeland security, film production and biotech,” says Levy. With the departure of the defense industry years ago, he adds, “The park will create a new sense of identity for Suffolk County and Long Island” to become known as a leader in particular industries by those outside the area looking to place their venture capital. “As the County begins to build a new reputation, our economy can benefit substantially.”

"Rechler Equity Partners is proud to have been selected to develop this exciting economic development project,” says Mitchell Rechler, managing partner, Rechler Equity Partners. “We have the vision and resources to make the Hampton Business and Technology Park a great success and look forward to adding to the overall quality of life on eastern Long Island.” Managing Partner Gregg Rechler adds, “In 1958, New York’s first industrial park was developed by our grandfather, William Rechler. Fifty years later, Rechler Equity Partners is continuing that tradition of innovation with the new tech park at Gabreski.”

Filmmakers and Suffolk County
At a news conference in September, Levy said the 485,000-square-foot center will include 50,000 square feet of digital film studios. The County Executive is quick to characterize himself as “bullish on making Suffolk County more of a player in film development,” and he notes, “A lot of filmmakers are looking for a film friendly area to do their craft.”

According to Michelle Isabelle-Stark, director, Suffolk County Film and Cultural Affairs, the film industry generates roughly $5 billion annually statewide, and the most recent statistics, analyzed in 2005, show the industry generated $400 million in Suffolk County. Levy has spearheaded a Film Friendly Suffolk County initiative designed to give the industry a boost. It is being developed in conjunction with villages and towns to make it easier for directors and producers looking for permits and location information.

“We are streamlining the permit process, and if they come to our Film Commission, we’ll handle all the permits they need to get,” says Levy.

Earlier this year, in an effort to capture some of the filmmaking lost to neighboring states, the State Legislature passed legislation to provide a 10 to 30% New York State Film Production Tax Credit, a refundable income tax relief to filmmakers who choose to shoot in the state.

“We have Hollywood stars who vacation here,” adds Levy. “We might as well put them to work in Suffolk County.”

Homeland security
The County Executive notes that Gabreski is “a natural fit for development of homeland security products.” A general aviation airport used by private aviation, corporate businesses and air taxi services, Gabreski is also home to the 106th Rescue Wing of the Air National Guard, which operates over-water search and rescue missions from the Azores to the Bahamas. The unit also assists in disaster relief and New York State emergencies. The United States government built the airport in 1943 for use as an Air Force Base during World War II.

“It’s a perfect spot for us to look to develop defenses to potential terrorist attacks and chemical or biological weaponry,” notes Levy. “It’s accessible to major transportation arteries, is sewered, is an Empire Zone and provides tax breaks.” The County has initiated and is continuing discussion with New York State officials to consider Gabreski airport as a location for a Homeland Security Training Center, either on a small or larger scale level.

Encouraging a “green” future
Levy’s vision for “green” research and development businesses at the Gabreski complex dovetails with Rechler Equity’s construction plans for the facility to meet LEED (Leadership in Energy and Environmental Design) certification criteria with the goal of making the structures as “green” as possible.

“We will embrace LEED certification in all facets of design and construction,” notes Gregg Rechler. “As a result, environmental impacts will be reduced and tenants will enjoy the many benefits of leasing in a ‘green’ business park, including improved air and water quality.” In 2007, the company was selected to develop the 300-acre Enterprise Park at Calverton, EPCAL, which promises to be a model for future industrial parks throughout the country featuring the most technologically advanced systems and “green” LEED certified construction.

The Business and Technology Park is closely aligned to Levy’s “open (green) space” agenda. He says, “We want the economic growth and the jobs that come with [the development], without having to give up our desire to preserve beautiful open spaces.” He has been targeting “pre-developed” areas to grow Suffolk’s economy, and he references such developments as the Yaphank County Center, Pilgrim State Psychiatric Center, Stony Brook University and Calverton, which was once a Grumman site. “If we develop those areas that are already plowed over, it takes pressure off seeing a loss of our open space,” he concludes.

“It’s a great message when this type of County-sponsored development will be environmentally friendly, as well as economically powerful.”

Decades of delay
“The plan for an industrial park at Gabreski goes back to 1970,” when the Park was first mentioned in the Town of Southampton’s Master Plan, notes Chief Deputy Suffolk County Executive Jim Morgo, who played an integral role in keeping the County and Town on task. Several years ago under former Town Supervisor Patrick Heaney, who now serves as County Commissioner of Economic Development and Work Force Housing, Morgo says the Town adopted an Airport Planned Development District (APDD) at Gabreski, which laid out the parameters, including the acceptable and unacceptable uses. More recently, the two government entities had decided that the Town would have control of zoning and the County would issue a Request for Proposals, which concluded with the selection of Rechler Equity Partners.

“What was key,” Morgo adds, “was creating a plan for the Business and Technology Park that the people of Westhampton would find compatible with their community,” particularly since it is a resort community. Airport activity was “unacceptable,” therefore Town and County officials agreed that the industrial park should attract non-aviation businesses as tenants. In addition, while the Master Plan had called for the Park to be as much as one-million square feet, the community wanted to limit the density. Through County and Town outreach, the community agreed to a 500,000 square foot development, and Rechler Equity brought in a plan that is 485,000 square feet.

The facility’s construction will make it flexible enough to accommodate a few large companies or as many as 40 smaller businesses as lease tenants, and the Park creates a potential for 600-700 jobs. In 2004, the APDD was named one of Suffolk County’s five Empire Zones. This State Department of Economic Development designation provides enhanced incentives to stimulate private investment, including state income tax credits for each new employee hired. Other incentives are lower business tax rates, exemption from state sales tax, and lower utility rates.
Rechler Equity’s initial plans, which the company is now refining and finalizing, also call for a 145-room hotel and conference center. The developer agreed to a 40-year lease, with an option to extend the lease for another 40 years. The County is expected to receive at least $40 million in rental income over the original lease plus real estate and sales taxes when the park opens. Morgo sees the project as having long-range positive impact for residents on their local taxes.

“We are expediting final negotiations now,” Morgo adds. “I don’t anticipate any problems.” Construction will be completed in phases and may take between three to five years.

“It’s nice to see results,” says Levy. The County had put a priority on the development, and he adds that the Business and Technology Park is “very promising.” “We’ll be able to get the high paying jobs in Suffolk County, as we did with Canon U.S.A., Honeywell, AirTechnics, Telephonics and so many other companies. They’re within our sights.”

Gabreski Airport is the home location of Networking® magazine and Sheahan Communications, which publishes House Magazine and Builder & Remodeler. Networking® publisher Christine Conniff Sheahan and her husband, Denis, founded Sheahan Communications and moved their publishing organization from their home to Gabreski airport in 1984. After 25 years of publishing House Magazine, Sheahan Communications created Sheahan Television Productions, producing the television series, House Television, which features interviews with builders, architects and interior designers about their upscale masterpieces on Long Island. Mr. Sheahan is currently writing a film script which he hopes to complete in the first half of 2009.



 


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