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After receiving site plan approval, tax incentives sought for propane facility

A proposal to consolidate a liquid propane company and other businesses onto a 4-acre Kroemer Avenue location received site plan approval from the Riverhead Planning Board last week and is now seeking tax incentives from the Riverhead Industrial Development Agency.

The proposal would consolidate and expand its 48 Kroemer LLC’s operations on Kroemer Avenue, north of the Long Island Rail Road tracks.

“We are requesting IDA incentives to incentivize the investment, which is approximately $15,704,000,” said Chris Kempner, a representative for the applicant. “That would be prohibitive to the applicant moving forward without assistance.”

The applicant estimates construction costs to be $9.7 million.

48 Kroemer LLC, a proposal that dates back five years, received final site plan approval last Thursday for its application to demolish an existing building and construct a 180,000-gallon liquid propane facility. 

The project includes six 30,000-gallon storage tanks, one 38,472-square-foot industrial building, a 9,901-square-foot empty portable storage tank area, and improvements to landscaping and lighting.

The site plan approval from the Planning Board came about after the applicant agreed to reduce the number of 30,000-gallon storage tanks from eight to six. The Planning Board voted down a preliminary site plan in 2021.

The company is headed by Frank Fisher of Westhampton, who is seeking IDA assistance in acquiring the parcel, as well as assistance in demolishing two existing buildings on the site and the construction of two exiting buildings on the site.

Mr. Fisher’s rental property management company called the Fisher Organization is currently based on Riverleigh Avenue in Riverside. He plans to move his operation — including 631 Propane, Go Green Sanitation, and the Fisher Organization — onto the Kroemer Avenue location. The Fisher Organization has 70 rental units in Flanders.

“48 Kroemer LLC is wholly owned by Frank Fisher and it’s a new entity formed for the purpose of acquiring and redeveloping property at 48 Kroemer Avenue,” said Ms. Kempner, a consultant for Mr. Fisher, who was not at the IDA meeting.

The IDA board voted to schedule a public hearing for its July 11 meeting. The specific details of the IDA abatements has yet to be formalized, according to IDA executive director Tracy Stark-James.

Ms. Kempner said the proposed two-story industrial building would include 15 offices, 12 work stations, shared meeting space and logistical support for businesses. She said Mr. Fisher has several other businesses that he would like to relocate to the new facility. 

“The concept is to have a facility that would allow new businesses to have space where they can locate and have support with all of the office needs without having to individually acquire those types of services,” Ms. Kempner said.

IDA members compared it to a business incubator.

“The only way we can expand is to get our own plant,” said Ray Dickhoff, a representative of the Fisher Organization.

He said they also have begun talks with the LIRR about reestablishing the rail spur to the site.

“It’s a really unique project,” said IDA member Lori Pipczynski said.

“I think anybody who spent five years to get to this point show a dedication of purpose that is admirable,” said IDA member Lee Mendelson.