GREENPORT OFFICIALS:  KOHL'S SIGNS CONTRACT

Mike McCagg
ccSCOOP

07-24-10 - Kohl’s has signed a contract and will be opening a store in the Greenport Commons complex, town officials said.

The store was the center of controversy earlier this year when Greenport Common’s developer Widewaters repeatedly sought from the county Industrial Development Agency a PILOT payment plan for Kohl’s that would have significantly reduced the amount of property taxes paid by the store. The IDA rejected both plans, despite county officials’ support for the tax abatement.

Town Building Inspector John Florio and Planning Board Secretary Beth MacGiffert both told ccSCOOP this week that the lease contract has been signed and that Kohl’s will locate in the town. Town officials have been in “near constant contact" with Widewaters officials over the design of the store for more than a month.

“They signed the contract,” said Florio.  “We are just looking at a few final submissions,” he added, speaking to the building’s plans.

Contractors have been hard at work for about a month preparing the store’s location, which would be next to the Lowe’s store.

Widewater’s officials did not return calls for comment and a Kohl’s spokeswoman refused to answer the question about the status of the lease, only saying the company has not announced any plans to open a new store in Greenport.

The store is slated to be 64,000-square-feet, smaller than initially proposed and would employ approximately 37 full time employees, Marco Marzocchi, counsel for Widewaters, told officials earlier this year.

Officials with Kohl’s and Widewaters claimed that a PILOT was necessary if Kohl's was to locate a store in Greenport. Marzocchi went so far as to tell the IDA that there were only two possible scenarios: Kohl’s with the PILOT; or no Kohl’s. IDA members considered that statement “arrogant”.

Initially, a twenty-year PILOT had been requested, which limited property taxes on the store to $22,500 annually. When that was rejected, a fifteen-year PILOT was proposed which increased the property tax by 1.5 percent. That proposal was also rejected by the IDA, despite support of the Board of Supervisors. The yearly property tax on the store, without a PILOT, is estimated at $81,600.

County Planning and Economic Development Commissioner Ken Flood told ccSCOOP on Thursday that he has not heard from Kohl's or Widewaters recently and was not aware that a lease had been signed.

"If that is the case, that is wonderful news and we welcome Kohl's to the community," said Flood.

Asked about his support for the PILOT tax abatement, Flood said it turned out to be a win-win situation for the county and added that he "obviously supported" the IDA decisions.

"I am glad we were able to get Kohl’s and TJ Maxx without the PILOT and I fully support the IDA decisions to not provide tax breaks," he said.

Earlier Related Stories:

IDA REJECTS KOHL'S PILOT APPLICATION (02-05-10)

KOHL'S TO COME BEFORE THE IDA AGAIN (03-05-10)

KOHL'S STORE NOT OFF THE TABLE YET (05-15-10)