Mall Gets Tax Abatement on Expansion

Walt Whitman Shops will get a 10-year tax abatement on its expansion.

Suffolk County Industrial Development Agency CEO Anthony Manetta said the abatement starts at 50 percent and decreases over the 10-year period until the full rate applies. He said the abatement will save Simon $1.2 million over the term.

The owner, Simon Property Group, paid taxes of $6,473,552 in the 2011-12 tax year for the whole property. The abatement applies only to the expansion.

"We feel that it’s a positive economic development," Manetta said. "It's a project that creates a significant amount of construction jobs, a considerable amount of spending during construction and hundreds of permanent jobs at the mall."

A company seeking a tax abatement applies directly to the Suffolk County IDA, which then determines what to grant.

The abatement will most likely kick in for the 2014 tax year, Manetta said.

Earlier this week, Simon Property Group showed off its plans for new stores, saying it expected to complete its expansion by November.