Developers of a planned 143-room hotel in Melville will receive additional economic incentives from the Suffolk County Industrial Development Agency, after the costs of the delayed project increased.
The project to build a four-story, 106,016-square-foot extended-stay hotel on the 2.96-acre site at 500 Broadhollow Road had previously received IDA benefits in June 2022, however, the cost of the development has since risen from $39.38 million to $49.57 million and a change in ownership of the project caused it to be delayed, according to IDA documents.
The majority owner of the development group Broadhollow Road Hotel LLC is Giaquinto Management and minority owners include Garone Management, George Tsunis and former U.S. Senator Alfonse D’Amato, among others.
A long-vacant 6,695-square-foot office building has been demolished to make way for the new hotel, which will be a Residence Inn by Marriott. The vacant office building site generated about $26,000 in annual property taxes and the new development will pay $100,000 more in taxes in the first year and the property tax revenuewill grow to more than $425,000 once the 15-year payment-in-lieu-of-taxes agreement expires, according to the IDA.
The project is expected to create 32 jobs with an initial payroll of over $1.3 million, 500 construction jobs and over $500,000 per year in hotel taxes.
“Some of the principals behind this project have previously collaborated with the Suffolk IDA on the Huntington Hotel project, a successful addition that has enhanced the community,” Kelly Murphy, executive director of the Suffolk IDA, said in a written statement. “This substantial investment not only builds upon Suffolk County’s thriving tourism sector, but revives a vacant site surrounded by active office buildings along the 110 corridor into a tax generator. We are proud to support Broadhollow Road Hotel, LLC for this venture and eagerly anticipate its groundbreaking.”
The new Residence Inn will feature 620 square feet of meeting space, outdoor space with a BBQ area, a dining area, a fitness room and an outdoor pool. The hotel project will serve the existing and expanding business community in Melville and surrounding areas and benefit Long Island’s tourism industry, which is expected to see an estimated 8 percent growth in occupancy over the next five years, according to an HVS Consulting study.
Construction of the hotel is expected to begin shortly, and it’s expected to open in the third quarter of 2025.
“We look forward to embarking on this exciting project for the region that is only made possible thanks to the support of the Suffolk County IDA,” Lou Giaquinto, a principal of Broadhollow Road Hotel, LLC, said in the statement. “The development of this hotel will elevate the attractions and accommodations across Long Island for the millions of visitors to the region, while also creating jobs and supporting local businesses along this thriving corridor.”
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