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Nassau County industrial development agency recently granted tax breaks to Dennis Friedrich and Ric Clark for their purchase of RXR's office building at 1000 Woodbury Road. The buyers argued that the building, which was 40% vacant, needed $8 million in renovations to attract tenants and benefit the county. Without the tax breaks - a $570,000 initial payment plus a cap on property tax increases over 15 years - the $31.5 million plan wouldn't have been feasible, according to Friedrich and Clark.

    The agency approved the tax breaks, which include a two-year freeze on property taxes followed by three years of 1% increases and 10 years of 2% increases. RXR had previously sold its other buildings in the area without requiring tax breaks from Nassau County. The company's David Garten disputed the buyers' claim that the building had been neglected, pointing out that RXR had invested in its properties.

    The agency's decision was made with limited information about what would have happened if they had denied the request. Friedrich and Clark haven't said whether their financing depends on the tax breaks. The IDA's grant of tax breaks is part of a larger issue regarding the use of subsidies by industrial development agencies, which provide a significant portion of the $11 billion in annual state subsidies.

    In other news, a hearing was held about Bruce Eichner's project across from the Brooklyn Botanic Garden. His lawyer argued that removing underground parking would not significantly reduce costs and allow for more affordable rents. The project will still include less parking than required by zoning, but the excess space will be used for parking.