Allied Building receives tax break from Riverhead IDA

TIM GANNON PHOTO | A new 16,700 square foot building on this site off Miller Way in Calverton will be home to Allied Building Products' first East End site.
TIM GANNON PHOTO | A new 16,700 square foot building on this site off Miller Way in Calverton will be home to Allied Building Products’ first East End site.

Allied Building Products received two key approvals this week for its plan to build its first East End location off Edwards Avenue in Calverton.

On Monday, the Riverhead Industrial Development Agency voted 4-0, with one member absent, to grant tax incentives to the New Jersey-based company.

Those exemptions include sales tax abatements on the cost of building supplies, mortgage tax abatements and a property tax abatement on the value of improvements to the property which, starts at 50 percent and decreases five percent per year over 10 years. The value of the land is not affected by the abatement.

Meanwhile, last Thursday night, the Riverhead Town Planning Board approved the site plan for a commercial building, showroom and sales office that Allied plans to lease on the east side of Miller Way, a new road that connects Edwards Avenue to the Gulf gas station parking lot on Route 25 in Calverton.

The property owner, a company called 1998 Peconic LLC, received approval to build a 16,700 square-foot industrial facility on the property. Allied hopes to expand to about 30,000 square feet in the future.

1998 Peconic is headed by Paul Elliott of Soundview Realty Group and Jim Miller of Miller Environmental Group. They also built the Gulf station on Route 25 in Calverton and Miller Environmental Group is adjacent to Miller Way.

David Doran of Allied Building Products told the IDA in July that they were considering either the Calverton site or a site at Westhampton’s Gabreski Airport for their first East End location. He mentioned that greater IDA benefits are available at the Westhampton site, although this week, he clarified in an interview that Allied had not applied for those benefits, which are offered by the Suffolk County IDA.

Mr. Doran has since signed a contract with Mr. Elliott’s group that is contingent upon receiving approvals from the town, including the IDA approval.

“I think they made the right choice,” IDA member Lou Kalogeras said.

Mr. Doran said they planned to apply for a clearing permit and a building permit this week, and they hope to have the new store open by March.

Allied Building Products is based in East Rutherford, NJ and is a family-owned building supply company that was started in Jersey City in 1950 and now has more than 180 locations across the country and over 3,100 employees, according to its website.

They have 11 sites from Ronkonkoma to Manhattan but none on the East End, he said.

Mr. Doran told the IDA that Allied would have six or seven employees at the Calverton site in the first year and quickly increase that in subsequent years. The company pays its employees more than $20 per hour, he said.

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