IDA OKs $7M tax break for expansion to Port company

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IDA OKs $7M tax break for expansion to Port company
The Nassau County Industrial Development Agency has approved a PILOT for the Port Washington-based Paint Applicator Corporation of America. (Photo via Google Maps)

The Nassau County Industrial Development Agency has approved a $7 million tax break for a Port Washington-based building supplies wholesaler that will fund an expansion of its headquarters and distribution center.

With the money, the Paint Applicator Corp. of America will construct a 21,300-square-foot addition to its existing 91,250-square-foot facility located at 7 Harbor Park Drive in Port. The IDA said the investment will also help the company retain 127 full-time employees and add six new full-time positions within three years.

“The construction sector makes up a significant portion of our local and regional economy, which makes Paint Applicator Corp. of America’s decision to expand in Nassau County that much more impactful,” Richard Kessel, the Nassau IDA chairman, said in a statement. “Not only does our economy grow from the company adding full-time jobs and more than 70 construction-phase jobs, but all of the other companies that spend money here to utilize their goods and services means the expanded generation of tax dollars.”

The company was founded in 1969 in Queens by father and son Teddy and Herb Geismar, and received its name in 1975. Herb’s son Steve Geismar now serves as president of the business, which has expanded from paint materials to being a wholesale provider of hardware, lumber, janitorial and building supplies.

“Paint Applicator Corp. of America started from humble beginnings and we have worked tirelessly to become a leading wholesale distributor in the tri-state region,” Geismar said in a statement. “With the support of the Nassau IDA, Paint Applicator Corp. of America can continue to expand our business in Nassau County, which means more jobs for residents and better services and products for our customers.”

The IDA’s action provides the company with a 15-year PILOT (payment in lieu of taxes) agreement, during which it will make more than $8.6 million in payments to taxing jurisdictions, after taking into account the $7 million tax break. Without the project, which would only occur with the assistance of the IDA, approximately $5.6 million in taxes would be collected, meaning taxing jurisdictions stand to see an increase in revenue of more than $2.9 million as a result of the project, according to the agency.

“The IDA always strives to strike a balance that provides the incentive needed to make the project happen, while also ensuring that more tax revenue is generated as a result,” Harry Coghlan, CEO of the IDA, said in a statement. “PACOA expanding its base of operations in Nassau will provide results for our residents and any savings the company receives will be eclipsed by the revenue generated through job creation and an overall increase in economic activity.”

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