NEW YORK CITY- Active negotiations for storagedevelopments have come to a screeching halt, and existing contractsare in threat of default due to an updated amendment in the NewYork State 2021 budget bill moving up the deadline for qualifiableself-storage facilities to earn tax abatements, DJ Johnston,partner and senior managing director at B6 Real Estate Advisors,tells GlobeSt.com.
In the state's fiscal year 2020-2021 budget bill, also known asS7506B, storage developers now have up until July 1, 2020, insteadof June 2022 to get approved for a New York Department of Buildingspermit to enter into the city's Industrial & CommercialAbatement Program. ICAP grants tax exemptions for ground-up,renovated or redeveloped industrial commercial properties. " [It's]only two months from now, and two years ahead of when it wassupposed to sunset," Johnston said. "That makes it impossible forany pending storage site to secure the abatement."
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