By Hank Russell
Kelly Murphy, the executive director and CEO of the Suffolk County Industrial Development Agency (SCIDA), spoke at the June 6 LIMBA (Long Island Metro Business Action) meeting to discuss what the agency does and how it gets businesses to come to the county.
Murphy has over a decade of experience in economic development, having led the Suffolk IDA as executive director since 2024 after serving as acting executive director. Prior to that, she was the agency’s deputy executive director, beginning in 2015. Her career also includes key roles such as assistant to the commissioner of Suffolk County Economic Development and Planning, executive director of the Glen Cove CDA/IDA, and director of strategic initiatives for the City of Glen Cove.
“Our mission is to foster economic development,” Murphy said. “We help [companies] relocate, expand or remain in Suffolk. It’s not only about attraction, but also retention.”
Most of the industries that the IDA deals with are primarily industrial and manufacturing, and there is often a commercial property purchase or long-term lease associated with the transaction, according to Murphy. Most recently, the agency has brought in solar and battery storage firms. The two major criteria for companies to receive IDA benefits are that they make private capital investments and commit to retain and grow jobs.
“If the investment is $2 million or more, there is often a cost benefit to the company to seek IDA incentives,” she said.
Among the incentives the Suffolk IDA offers include PILOT (Payment in Lieu of Taxes), an exemption on the local mortgage recording tax, a property tax abatement ranging from ten to fifteen years in length and an exemption on local and state sales taxes on project materials and new equipment.
Contrary to what many people think, the IDA approval process can take as little as two months. “That’s as quick as we can do it,” Murphy said. The IDA works with applicants to develop a benefit package. A resolution is drawn up and presented to the IDA’s board at a public board meeting. The company owners are then often questioned “extensively,” then the board considers an inducement resolution followed by a public hearing.
Murphy then sends out a legal notice announcing the public hearing to be published in a local paper, and letters to local taxing jurisdictions to let them know about the hearing. After 10 days, the public hearing is held. The IDA collects comments from the public, and presents them to the board. At the next meeting, the IDA board considers the comments received and then votes on an authorizing resolution.
When asked what happens if the company receives the benefits but does not hold up their end of the bargain, Murphy replied, “We have the ability to recapture.” That means the agency has the right to claw back the funds the company received. “They write us a check and the money is redistributed to the affected jurisdictions.”
Dan Deegan, a partner with Forchelli Deegan Terrana, a law firm based in Uniondale, disabused the notion that the IDA is a money mill that throws cash at incoming businesses. “One of the big misconceptions is that the IDA hands out money — as if this money doesn’t exist — to buildings that will never be built and jobs that will never be created,” he said.
Murphy has also heard comments about the IDA providing “corporate welfare” for “the big developers.” She also heard misinformation about the PILOT program.
“PILOT doesn’t mean that nobody pays their taxes,” Murphy said. What a PILOT does, she said, is that the property taxes are taken off the tax rolls, and the company is taxed based on the future assessed value of the property over time, usually 10 years.
Murphy said “it’s been a busy week” as companies such as Orbic Technologies, CPC Innovations, IPP Operations and Mason Technologies have moved into Suffolk. Murphy pointed out that Orbic — which makes cell phones, tablets, mobile hotspots and wearables — came to Long Island last year after moving their manufacturing capabilities from China and India.
“They are moving forward and so is Suffolk County in helping businesses grow and expand here,” Murphy said.