Friday, June 20, 2014

New Self Storage Facilities Make Headway

Following the opposition of the proposal for a new self storage facility in Texas, there is some positive news in the self storage industry for those looking to construct new facilities. Both Elmont , NY and Arlington County, VA have received good news in terms of tax breaks and facility development.

In Elmont, officials in Nassau County awarded a tax break to a new self storage facility citing that it will address consumer need. The project is estimated to cost $10.4 million and is the first of six new self storage initiatives that will be built in Amityville, Deer Park, Glen Cove, Hicksville and Lindenhurst.

Much like the construction of the new self storage facility in Texas, this new venture has met some criticism as well. Opponents suggested that valuable tax breaks should be reserved for larger institutions that can provide more job opportunities since only a few jobs would be created as a result of the new storage facility.

The IDA decided to give a total of $258,750 in sales-tax exemption and $20,475 off the mortgage recorded tax to construct the building that will consist of 116,000 square feet of space over three stories. The project is to generate over $3.5 million in taxes over a 3-year period. If the land stayed vacant, however, it would garner enough money to which would be equivalent to four full-time paying jobs paying about $40,000 - $50,000 per year. Clearly, the option to have the self storage facility build on the land is the better financial choice for the community.

Furthermore, there is a real need for self storage in the year, according to IDA executive director Joseph J. Kearney. There are some in the community who remain unconvinced. Representatives from the Long Islands Jobs With Justice are skeptical of how the community will adequately give back to the community after it receives 15 years of tax breaks.

Elsewhere in Arlington, VA, a proposed self storage facility is in the final stages of approval for its site. A building permit is expected to be issued to what will be a five-story self storage facility which was approved by county staff but not by the zoning department which rejected the application for the mean time. An ongoing subdivision process will need to be completed before zoning for the facility can be approved.


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