Long Island developer tangles over tax breaks for lux senior homes

A new developer is proposing 86 luxury townhomes for seniors in Commack, but the tax breaks approved for the project are ruffling some feathers.

B2K Development applied to build the townhouses for those 55 and older, Newsday reported. The firm — founded last year by former principals of the Engel Burman Group — plans to spend $58 million on the project, according to an application with the Suffolk County Industrial Development Agency.

The developer behind the Bristal assisted living facilities is looking to build eight buildings spanning 134,000 square feet. It would be developed across 7.6 acres of vacant land on Hauppauge Road, close to the Gurwin Jewish Nursing and Rehabilitation Center.

Sutton Landing at Commack would have two-bedroom units with an attached garage — most units would start at $4,150 to $4,350 per month.

There are a half dozen affordable units and a half dozen workforce housing units as well. The workforce units will go for $3,950 a month, while the affordable units come in at $2,600, according to an analysis paid for by the IDA.

The paltry number of affordable units became a point of contention with the IDA. Treasurer Sandra Cochran asked for B2K to add more affordable units, but principal Steven Krieger pushed back, citing costs. 

“Construction costs are out of control. Interest rates are out of control,” Krieger said. “It’s a two-edged sword that is cutting us. We lose money on all the affordable housing.”

Krieger also pointed to B2K’s engagement of a rule in the town code that allows developers to donate to Huntington Town’s Affordable Housing Trust and Agency Fund, rather than add more affordable units. The company pledged $400,000, which allowed for the removal of four affordable units.

Ultimately, the IDA preliminarily approved $7.1 million in tax breaks for the project, the largest savings coming from a $4.9 million discount on property taxes over 15 years. Only one member of the board opposed approval, claiming the IDA was “basically subsidizing the tax base for wealthier residents” and calling for a higher percentage of affordable units.

Sutton Landing at Commack is expected to open in late 2025.

— Holden Walter-Warner