BRENTWOOD, NY—Score one for Long Island industrial and forincentives. The sector's biggest leasing deal locally has beensigned at 50 Emjay Blvd. here, thanks in part to an economicbenefits package from the Town of Islip IndustrialDevelopment Agency.

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ELM Global Logistics has committed to a 15-yearrenewal of its lease for 542,000 square feet on 30.5 acres at 50Emjay, which it has occupied since 1981. The company consideredmoving its base of operations to New Jersey, where it operates a200,000-square-foot warehouse in the Philadelphia suburb ofBurlington.

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The Islip IDA on June 4 approved a PILOT (payment in lieu oftaxes) program and $13,800 in sales-tax exemptions for landlordBrentwood Steel LLC and ELM. BillConboy, president of the privately held ELM, saysRichard Cohen, president of brokerageAshlind Properties, guided ELM in its approach tothe Islip IDA for economic assistance. “I'm grateful we did it. Itmakes a lot of sense,” he said.

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Conboy adds that a move to the Garden State could have resultedin lower costs for his customers at a time when the number ofcompanies with large shipping requirements on Long Island is on thewane. The IDA incentives, he says, “enabled us to balance thatout.”

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For his part, Cohen says the renewal “allows one of LongIsland's largest industrial property users to remain and supportthe local economy. It could not have happened without the help ofthe Islip IDA and the cooperation of the landlord.”

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An affiliate of Bethpage, NY-based Steel Equities, BrentwoodSteel has owned the building since 2006 and was self-represented inthe lease renewal by Joseph Lostrito. The propertywas formerly a Hills Supermarket warehouse.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.