NEWSLETTER “The authoritative voice on Long Island for ...€¦ · Located in West Hills Park in Huntington is Jane’s Hill. At a whopping 400.9 ft., it is the highest point on

NEWSLETTER “The authoritative voice on Long Island for commercial real estate.” SUMMER 2013

On May 14, Commercial Industrial Brokers Society of Long Island hosted a special “Meet the Supervisors Breakfast.” This lively and informative event provided information and updates on real estate development and projects in three of Long Island’s largest towns. The panel included Jon Kaiman, North Hempstead Town Supervisor; Frank P. Petrone, Huntington Town Supervisor; Rich Schaffer, Babylon Town Supervisor and moderator CIBS President Gary Schacker, SIOR, Principal of United Realty. Members and individuals from the business community asked questions and each supervisor provided their views, information and goals for development in their respective towns.

“The discussion was refreshing and the candid answers from the supervisors made it clear that they’re on top of development in their respective towns. Each supervisor expressed their interest and explained the challenges that they face. It was clear that these leaders also understand the needs and interests of both the commercial real estate sector and the residents in the communities they serve,” said CIBS President Gary Schacker, SIOR, and Principal of United Realty. North Hempstead Town Supervisor Jon Kaiman discussed the development projects in North Hempstead and the importance of balancing development and community involvement. Huntington Town Supervisor Frank Petrone spoke about the new Canon U.S.A. corporate facility in Melville and the significant progress made in terms of development in Huntington Station. Babylon Town Supervisor Rich Schaffer provided an overview of development in the Town including the significant progress of Wyandanch Rising.

Gary Shacker, SIOR, CIBS President and Principal of United Realty introduced (lt. to rt.) Babylon Town Supervisor Rich Schaffer, Huntington Town Supervisor Frank P. Petrone and North Hempstead Town Supervisor Jon Kaiman at breakfast hosted by CIBS.

Pictured from the left are Gary Shacker, SIOR, CIBS President and Principal of United Realty; Jon Kaiman, North Hempstead Town Supervisor; Frank P. Petrone, Huntington Town Supervisor; Rich Schaffer, Babylon Town Supervisor; David Chinitz, President Park Place Realty; and David Pennetta, Immediate Past President of CIBS and Principal of Oxford & Simpson Realty at the Meet the Supervisors Breakfast hosted by CIBS.

Town Supervisors (lt. to rt.) Rich Schaffer, Frank P. Petrone, and Jon Kaiman updated members and guests on real estate development in the three towns.

EXECUTIVE BOARD President

Gary Joel Schacker, SIORUnited Realty

Vice PresidentDavid F. Chinitz

Park Place Realty Group, LLCTreasurer

Kyle BurkhardtColliers International LI, Inc.

SecretaryDavid Leviton

CBRE

BOARDMario Asaro

Industry One Realty Corp.Roy Chipkin

CBRERobert A. Desmond

AIRECO Real Estate Corp.Steven Epstein

United RealtyAlberto Fiorini

Alliance Real Estate Corp. Daniel T. Gazzola

Newmark Grubb Knight Frank Doug Haynes

Polimeni Realty, Inc.Marisa Karmitz

Cushman & Wakefield of LI, Inc.Jack O’Connor

Newmark Grubb Knight FrankDavid Pennetta, SIOR

Oxford & Simpson Realty, Inc. Michael D. Rosenfeld

The Rochlin OrganizationPhilip Shwom, SIOR, CCIM

Schacker Realty Corp. Daniel J. Wiener

Integrated Realty Group, LLC

ASSOCIATE BOARDRalph Benzakein

Cresa Partners Joseph A. Lagano II Jones Lang LaSalle

AFFILIATE BOARDFrances M. Picone

Provident BankJayson Siano

Sabre Real Estate Group,LLC

COUNSELPeter L. Curry

Farrell Fritz, P.C.

PUBLIC RELATIONSWilliam Corbett

Corbett Public Relations

FOUNDERSHerbert S. Agin

Paul F. AmorusoJoseph A. Lagano

Samuel A. Rozzi, SIOR

CIBS Hosts Breakfast with Town Supervisors CIBS-LI.com

As we approach summer, CIBS has been moving in a positive direction. In January, we celebrated CIBS Hurricane Sandy–delayed Annual Meeting/Meet Your Associates/20th Anniversary event at the Race Palace in Plainview. In February, we held the CIBS Future Generation Mix and Mingle at Rare 650 in Syosset. In March, we sponsored the Long Island Commercial Real Estate Expo and hosted the CIBS Program: Suffolk County IDA Initiatives & Melville Employment Study. What’s more, we participated in the March 20th ABLI, CIBS, LIBI, LIBOR Annual Real Estate Summit. In April, we held the ABLI & CIBS Annual Real Estate Sans Black Tie Dinner. It has been a very exciting and busy time for our organization.

By the time you read this newsletter, we will have held our unprecedented “Meet the Supervisors” event featuring Frank Petrone, Huntington Town Supervisor; Richard Schaffer, Babylon Town Supervisor; and Jon Kaiman, Supervisor for the Town of North Hempstead. In May we hosted CIBS’ 17th Annual Golf Outing at Cold Spring Harbor Country Club. Don’t miss our First Nissequogue River kayak/canoe trip scheduled for Friday, August 2nd; this will truly be special, especially if you have never paddled the Nissequogue before. Look for more info soon.

This year, we established new committees such as the Sustainable Practices Committee and the Transportation Committee. We are also in the process of establishing an Ad Hoc Associates Committee in order to garner ideas on how CIBS can better serve our associate members. We have enhanced the CIBS website, making it more robust and interactive. We have significantly improved our digital presence and appreciably fostered our Social Networking initiatives, further embracing LinkedIn, Twitter and Facebook, and

seeking new avenues in Social Media. As part of our 20th Anniversary, we conducted an interview with the CIBS founding fathers and posted it on YouTube with a link to the CIBS website: http://www.cibs-li.org/youtube CIBS received recognition and a plaque from Hofstra University commemorating The Larry S. Feldman–Commercial Industrial Brokers Society Endowed Scholarship, which is being funded by proceeds from the CIBS Golf Outing.

Over the last few several months as CIBS president, I have attended numerous seminars, symposiums and expos pertaining to commercial real estate and related matters. Never before as a Commercial Broker (35 years) have I been so focused on residential real estate. In the past, the two markets were always connected, of course, but now they are intertwined in a new and symbiotic way. The commercial market is now much more dependent on what happens with housing projects and residential development. We are focusing on and advocating for responsible development, embracing concepts such as TOD (transit-oriented development), appreciating the coming of the double track from Ronkonkoma to Farmingdale, and testing the new concepts of downtown development. It’s now all about the jobs and housing, and the future of the commercial and industrial market is dependent on how things shake out in this arena.

I want to believe Long Island is in the midst of a major and very beneficial transition. My son has moved to Astoria; my daughter is moving to Manhattan. They want to stay close, yet not live on the outer reaches of Long Island. For the first time, the movement is west and not east. Younger people want to live in thriving, vibrant communities with lots to

do. They want to walk and take the train and not have to be chained to a car. It appears that more Long Islanders from all communities are starting

to get it. Projects including Wyandanch Rising, Ronkonkoma Hub, Downtown Hempstead and other projects, like the Nassau Coliseum, are gaining momentum and getting broad-based community support.

The Village of Patchogue has gotten it right under the guidance of Mayor Paul Pontieri. The Tritec development there will set a new standard and start a new era in Long Island downtown development. Look what’s been done in Huntington Village with the downtown overlay zone. More three-story buildings with two stories of apartments on top of retail are becoming available. Now that’s the ticket! Another project planned on Gerrard Street includes 12 apartments on top of a strip of retail. Huntington has one of the most progressive downtowns on Long Island. I like to think of it as “Astoria east”–although it kind of pales in comparison.

We, as brokers, need to advocate for progressive responsible development on the residential side and as well, of course, on the commercial end. We need to get people thinking and to understand that their focus has to change and to change more rapidly. We don’t need to develop the Carmen River but we do need to pass along the development rights. A unified voice from all constituencies is needed to appeal to our elected officials and compel them to realize that the whole economic future of Long Island is predicated on efficient modern development employing sustainable practices. We must keep our youth here and stop the “brain drain.”

President’s MessageJune 2013Gary Joel SchackerSIOR CIBS President

Page 26800 Jer icho Turnpike • Suite 120W • Syosset, NY 11791 • Tel : 516-393-5820 • E-mai l : cmaj id@cibs- l i .org

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Island Park–Avalon Bay Communities

Virginia-based Avalon Bay Communities will be investing $200 in three apartment developments, one in Island Park and two others in locations that have not yet been announced. This undertaking will add 500 units to the firm’s already 3,000 rental residences on Long Island.

The Island Park development will be a 140-residence complex at a projected cost of $60 million. It is expected to provide not only rental space but also to support the revitalization of the local business community.

Avalon partnered before Hurricane Sandy with Farmingdale-based Posillico Development on what will be known as the Battery at Harbor Isle & Avalon Yacht View, a Posillico waterfront project with 32 condos and 31 boat slips, formerly the Cibro oil storage and distribution facility–a 11.5-acre site.

Ronkonkoma Hub–Tritec Real Estate

Nearly 90 percent of the the Ronkonkoma Hub site is owned by seven property owners, most of whom do not want to move. This is the crux of the legal dispute that has surfaced between the project’s master developer, East Setauket–based Tritec Real Estate, and the some of the owners of the 54 parcels at the redevelopment site. Attorneys for both parties have been in court over the possibility of condemnation, which would move plans forward for development around the Ronkonkoma Long Island Rail Road Station. The proposed project would add rental apartments, commercial office space and retail shops.

Government officials acknowledged that condemnation is a legal mechanism available to Tritec. If the matter is not resolved, the town can use its power of eminent domain. However, at this time, property owners remain steadfast in their position not to sell.

Nassau Coliseum

Recently, four proposals for the redevelopment of the Nassau Coliseum have been submitted to Nassau County. Each plan will be presented to the Business Advisor Council and reviewed by Nassau County Executive Edward Mangano. Bidders included Bruce Ratner, owner and developer who built the Barclays Center; the Madison Square Garden Company, which owns the Garden, the Knicks, and the Rangers; Ed Blumenfield, President and Founder of Blumenfield Development Group of Syosset; Bernard Shereck, CEO of New York Sports & Entertainment.

Nassau Hub master developer is Renaissance Downtown, and the bidder with the winning proposal will work with the others on the redevelopment of the area.

The Nassau Coliseum will be redeveloped, and a number of proposals have been floated. Many expect a new, smaller, family-oriented sports and entertainment venue.

Nassau County would continue to own the land, and the winning bidder would lease the Coliseum and pay a yearly rental fee based on the revenue earned by the venue.

I think Walt Whitman had it right all those years ago:

Located in West Hills Park in Huntington is Jane’s Hill. At a whopping 400.9 ft., it is the highest point on Long Island. On top of Jane’s Hill is a big rock, geologically known as an erratic. Imbedded in this rock is a bronze plaque. On the plaque is a seven-line poem written by Walt Whitman called “Paumanok.” Paumanok is the Native American word for “Long Island.” This poem written between 1847 and 1855 goes like this:

Sea-beauty! stretch’d and basking!

One side thy inland ocean laving, broad, with

copious commerce,

steamers, sails,

And one the Atlantic’s wind caressing, fierce or

gentle–mighty hulls

dark-gliding in the distance.

Isle of sweet brooks of drinking-water–healthy

air and soil!

Isle of the salty shore and breeze and brine!

This is my vision for Long Island: “Copious commerce” and sweet drinking water.

Recently, I attended an event hosted by the Huntington Chamber of Commerce in which Steve Bellone was the featured speaker. He talked about some of these very initiatives and approaches. At one point during questions, a young man stated that he represented the Long Island youth who wanted to stay here. He told us that even with some housing coming down the pike, young people could still not afford rents due to the high costs of real estate taxes and infrastructure. Our municipalities need to provide incentives to developers so that these obstacles can be overcome.

An example of a true success story is what Steel Equities has done in Bethpage. The firm rented nearly one and a half million square feet of industrial and office space within a little over a year. This was accomplished, in large part, due to the 40-year tax incentive program provided by Nassau County (not to mention their skill, expertise and cooperation). They made it happen, and if you ever needed a test case, just look there.

President’s Messagecontinued

CIBS-LI.com


Donald Monti, President and CEO of Renaissance Downtowns, has been at the forefront of real estate development on Long Island for 35 years, playing a significant role in the development, construction and management of more than 80 major projects. In 2008, he embarked on a new business model, which he says classified him as a self-proclaimed “recovered developer.” For most of his early years in property development, he kept to the suburban, or horizontal, model, which essentially equates to everything being spread out, or as he puts it, “automobiles are required.”

“My career has evolved around what I love to do: create environments. But I got concerned about turning out designs for the same environments, which to me didn’t feel right anymore and didn’t really contribute to improving the quality of life here on Long Island. Today I feel good about creating environments that people really want and giving the market what it is clamoring for. We are doing this in a way that no one else in the country is doing,” emphasized Don.

Renaissance Downtowns, Don relates, is committed to a “triple bottom line” approach to real estate development that focuses on social, environmental and economic responsibility. If any one of these three categories is not satisfied, the company wants no part of it. “In the past the focus was on developing ‘green fields,’ which means the land was not yet developed. Today, we follow a green — as in environmentally sustainable - manner of development and embrace environmentally friendly building designs, but for areas that have already been developed. In essence, what we are doing today is adopting a development model that can grow Long Island for the next 50 years on a mere one percent of its land,” Don said.

“Sustainability is everything,” Don emphasized. “Single-family homes

Renaissance Downtowns’ CEO Don Monti Developing Long Island’s Future



have been a fabric of Long Island for 70 years. Actually, the birthplace of sprawl was Levittown, Long Island, and that was back in the early to mid-40s. This approach became the development model for the rest of the country. We now realize that it’s not a sustainable model for today — at least not when done without a balanced approach to land use. When transportation costs for people exceed their already high housing costs or when you build an LEED building in the middle of an area where you have to drive 50 miles to and from, this dramatically offsets any benefits of LEED construction,” he added.

“So many elements (of development) are out of balance on Long Island and in other parts of the country, but more so here on Long Island. We must embrace sustainable change, which means building up our downtowns where the

infrastructure is, in many cases, already in place. These downtowns are where the devastation of 50 years of disinvestment and disenfranchisement has occurred. When a downtown that has not been maintained is finally redeveloped, it has positive effects on the entire region. This is what we need to do to keep and attract our young people here. This is what we need to do to keep companies and attract new companies to the area. This approach follows the theory of ‘rising tides lift all boats.’ ”

Renaissance Downtowns has been selected as the “Master Developer” for Huntington Station, the Village of Hempstead and the Nassau Hub. The Nassau Hub represents Nassau County’s largest track of redevelopment land. Development of this area has been debated and discussed for over two decades, but plans are now moving forward and Renaissance Downtowns is at the forefront.

“We’re very committed to the idea of the Nassau Coliseum Hub and the Village of Hempstead working in a very complementary

manner. This could become one of the most significant redevelopment projects in the entire country when you consider the combined synergies. What a truly catalytic project this could be for Long Island. There is the potential of millions of square feet of research and development, biotech, healthcare, education, recreation and sports, combined with a revitalized Village of Hempstead downtown area. What a wonderful opportunity for people to work at the Nassau Coliseum Hub and live in the Village of Hempstead, where they could bike or walk to work. There is an enormous opportunity for real transformative change,” Don said.

The economic impact of this project will be significant for the county and its citizens. It is clear that it will also have a positive effect on the real estate brokerage community and the members of CIBS.

Don believes strongly that the brokerage community will benefit from the transformation of this area of Nassau County. These projects will stimulate economic activity, and new companies will be attracted to locate here. With this kind of positive activity, inefficiencies and other problems can be successfully addressed.

“When did the last large corporation locate here on Long Island with 1,000 or 2,000 employees? Canon? No, they only moved from Nassau to Suffolk. What we, as an industry, have been doing is nothing more than a cannibalization of each other’s tenants. We have essentially been stuck playing musical chairs,” said Don.

For the brokerage community, Don sees the strong potential for the expansion of the region’s corporate base, which would mean the retention, growth and attraction of businesses, whether existing or startups or even incubator startups. He sees the Nassau Hub project representing positive growth, and it is clear to him that this is needed. He put it simply: “Unless you grow, you die.”

One of the major challenges Long Island faces lies in the area of transportation. The regional transportation infrastructure, railroads and automobile traffic all present their own set of unique challenges. Developments and regional planning must address these issues and become part of the solution.

“Transportation is an essential component of development, and

as such we must focus on marrying land use with transportation. This approach has never been successfully implemented here on Long Island,” said Don. The projects with which Renaissance Downtowns have been involved include focusing on transportation options and looking for practical solutions.

A number of Renaissance Downtowns projects are moving forward. They are looking to break ground sometime toward the latter part of this year inHempstead and Glen Cove; Huntington Station is still in the planning stages with construction beginning in 2014. The Village of Hempstead, $2 billion mixed-use redevelopment is fully approved and rezoned with a site plan submitted. Construction is expected to begin at the end of this summer. Don suggests that the Nassau Coliseum redevelopment could begin as early as the fall of 2013.

Renaissance Downtowns’ CEO Don Monti: Developing Long Island’s Future Continued


CIBS-LI.com

Long Island’s future and how to approach development is always on Don’s mind. “The movement against any and all development is a far weaker force than that for those who are in favor of responsible economic development. We have in our process engaged supporters, or as we call them ‘the silent majority.’ When they are energized, these are the people who transform apathy into energy. The energy in the opposition is greatly weakened or neutralized when community members rally behind responsible economic development and proper placemaking, which are both pivotal regarding the retention of our young people,” he said.

The key to Renaissance’s success in garnering public support for large-scale, mixed-use development has been their keen understanding of the power of the internet and social media. By harnessing these tools through what the company calls “Crowdsourced Placemaking,” a proprietary and patent-pending grassroots, social media program, local residents and businesses participate both online and in person within the development process. “Social media is a tremendous tool, through which you can engage community members in a meaningful and productive dialogue. It allows us to create a shared and implementable development vision, with community input every step of the way. In short, we create an atmosphere where political leaders can and want to say yes to responsible economic development,” said Don.


Don is optimistic, and strongly believes that many factors can slow development on Long Island, but he primarily focuses on the sluggish economy that the area has been experiencing over the past several years. Lingering economic challenges have helped create a more positive attitude toward development.

Don reminds us bluntly that “all boils down to one thing — ‘the economy.’ The economy drives everything else. It drives young people to stay. It drives people to come. It drives companies to stay. It drives companies to come. If you try to solve all of Long Island’s problems in one swoop with a disjointed effort and a lack of focus, you will fail. If you look to solve Long Island’s problems by focusing on the economy, issues can be clarified and addressed.”

One of the major pieces of the puzzle for the future growth of Long Island economically is housing. Where will young people and families live? What type of housing do older Long Islanders need? How will this help drive economic activity?

“Inadequate housing remains a primary concern for Long Island. There are folks who want and need and should live in a single-family home, but then there are others for whom this is not a feasible option. The 20-somethings don’t want to be in single-family homes. The Boomers in many cases do not want to be in one anymore: their kids are grown, and they don’t want the burden of a house any longer. Still others don’t want to have to drive everywhere they go,” Don added.

He sees a large part of the solution in downtown living. “Downtown living — this is where the downtown actually becomes an extension of your living area. It allows people to have an option that has never been available before. A vibrant downtown, reinvented. These are places that have not existed on Long Island, places that need to and will exist going forward — simply put, the market demands these destinations and these live, work, learn, shop and play environments.”


Renaissance Downtowns’ CEO Don Monti: Developing Long Island’s Future

CIBS-LI.com

For many, the future of Long Island is unclear. However, Don and his team at Renaissance Downtowns have a clear vision and workable plans to return the region to prominence and make it competitive economically.

“By 2020, I see Long Island becoming something it once was, a desirable place to live, a destination that will attract people and most importantlya place for companies to locate. Smart development will also help in retaining and attracting a young workforce and therefore stimulate the innovation economy here on Long Island. For municipalities, it is our hope and our goal to make it easier for decision makers to listen to the will of the people, not to the will of a few. Listening to the will of the masses is vital. The silent majority needs to be engaged and aroused. When they are, they will come to the surface in a way that has never been seen before.”

Don’s optimism and determination are evident. He and his team are engaging with government leaders, communicating with the commercial real estate brokerage and business communities and spreading their message of smart, sustainable and economically focused development. It is clear that he and his team at Renaissance Downtowns believe that when the silent majority is engaged and when they make their voices heard, much can and will be accomplished. Renaissance Downtowns is committed to developing a bright future for Long Island’s businesses, communities and residents.

Continued

The celebratory and networking event was attended by over 150 brokers, associate members and representatives of various industries. Awards were presented to members in recognition of their contributions to CIBS’s leadership standing in the region.

CIBS and ABLI co-hosted the Annual Real Estate Dinner in April at the Carlyle on the Green at Bethpage State Park. Leaders in real estate and related industries gathered to network and celebrate the achievements of recipients of the 2012 Broker of the Year, Developer of the Year and Lifetime Achievement Awards traditionally presented at this prestigious event.

CIBS co-sponsored the “Real Estate, Restoration and Transportation on Long Island” conference, presented by The Institute of Real Estate at Hofstra University held in February at Hofstra University Club, David S. Mack Hall in Hempstead. The event included lunch and panel discussion with Q & A. CIBS immediate past president Dave Pennetta was a panelist.

CIBS held its Annual Meeting Meet the Associates and 20 Year Anniversary Celebration at the Carlyle at the Palace, in Plainview in January.


In February CIBS sponsored the

Real Estate, Restoration and Transportation on Long Island Conference presented by The Institute of Real Estate at Hofstra University

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Long Island Development Briefs

Heartland Wolkoff building new warehouse at HeartlandDeveloper Gerald Wolkoff recently announced plans to build a 150,000 square foot warehouse/light manufacturing building on a 9.3-acre, lot located at 100 Wilshire Blvd., in Edgewood. The property received preliminary approval for Industrial Development Agency benefits Tuesday from Islip. Construction will begin once the benefits are approved. Wolkoff will be internally financing the project after the final IDA approvals in May. Construction is expected to be completed toward the end of the year. Currently, Wolkoff is in the process of finding tenants for the space. The $60 per square foot building will feature 26-foot-high ceilings and will be ideal for any warehouse or manufacturing business.

McArthur Airport / Foreign Trade Zone Gillibrand to push Foreign Trade Zone expansionU.S. Senator Kirsten Gillibrand and Suffolk County Executive Steve Bellone are advocating for the U.S. Commerce Department to approve the county’s request to expand its Foreign Trade Zone program. Foreign Trade Zones (FTZ) are secure areas acknowledged under U.S. Customs and Border Protection supervision where merchandise is not subject to U.S. duty or excise tax. Gillibrand and Bellone are pursuing this expansion because they believe a larger foreign trade zone would contribute to economic growth. They also believe companies that engage in import and export operations will be attracted to the area due to the Foreign Trade Zone incentives that include duty exemptions and reduced costs for assembling or manufacturing. About 8.4% of New York’s exports originate from Suffolk County.

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Banking products offered through Citibank, N.A., and/or its banking affiliates. Fees and conditions apply to certain of these products and services. Please contact a Citibank representative for the specific terms that apply to each product and service. Fees, terms and conditions of accounts, products, programs and services are subject to change without notice. All accounts are subject to approval.

Remote Check Deposit service is available in the U.S. only for U.S. Dollar-denominated checks. All accounts and services are subject to bank approval

Citibank and its employees are not in the business of providing tax or legal advice and are not responsible for advising customers on the laws or regulations pertaining to any exchange transaction and will not make any representations regarding the tax consequences of any exchange transaction. It is the customer’s responsibility to seek tax and legal advisors for this information. Citibank’s role is limited to acting as a qualified intermediary with respect to any exchange and any tax related statements are not intended to be relied upon for any purpose

© 2013 Citigroup Inc. Citibank, N.A. Member FDIC. Citi, CitiBusiness and Citi and Arc Design are registered service marks of Citigroup Inc.

In my position as Senior Vice President, Business Banking Relationship Manager with Citi® Commercial Bank, I interact with business leaders from a cross-section of mid-sized businesses on Long Island. In this article I outline the array of services that Citi Commercial Bank specialists offer to businesses in the commercial real estate industry.

Citi Commercial Bank Financial Intermediaries Group specializes in providing services tailored to the commercial real estate market. We focus on helping clients reduce administrative tasks, create efficiencies, improve controls and generate cost savings.

As seasoned specialists in commercial real estate, our bankers are known throughout the industry for their experience and commitment to their clients, their leadership and their integrity with industry colleagues.


CIBS-LI.comCIBS Associate Member Karen Scutellaro SVP. Citibank, N.A.631-265-5257 [email protected]

Come Join the CIBSSummer Canoe & Kayak Trip

down the Nissequogue RiverFriday August 2nd, 2013

9:30am - 2pmPaddle at 9:30am - Barbecue at 12:30pm

Come for either or both

SPONSORED BY

Don’t fight the tide. Ride the tide.Transportation back to car included

Paddle along 5 1/2 miles of incredible unspoiled nature at its finest.Enjoy a mini-vacation on Long Island’s scenic North Shore.

After Paddle we will have a Barbacueat Nissequogue River State Park

Kayaks and Canoes supplied by Nissequogue River Canoe andKayak Rental Inc. 631.979.8244 http://www.canoerentals.com

Call and check website for more information

Free for CIBS members - space is limitedTo sign up and obtain full instructions contact:

Christine Majid - [email protected]

This article was provided by

In elementary school I did a project on littering; in high school I wrote a paper about acid rain. Now all these years later I am driving my second Prius and still beating the same drum. I felt it was time to take stock. Are we making any progress? Or as I would have said back then…“Are we there yet?”

I became interested in the Green Building movement in the early 2000s at a Portland, Oregon, seminar, where it seemed the west coast was eons ahead of us on Long Island. I learned about LEED (Leadership in Energy and Environmental Design), the United States Green Building Council (USGBC), green roofs and rainwater harvesting and all kinds of cool and interesting sustainable practices. I came back, became a-LEED Accredited professional and set out to enlighten the Island’s commercial real estate industry.

I soon realized, as did many others, that the bigger opportunity wasn’t with the buildings themselves (we weren’t building too many new ones), but with the businesses inside the buildings. In addition, “green” didn’t always have to mean LEED-certified, it could be a focus on healthier, more productive, brighter, more energy-efficient

Green Building: Are we there yet?spaces. The label became less important than the goal.

Today’s college graduates, who have been ingrained in environmental responsibility and choose to stay on Long Island, might be surprised to find employers who are more aligned with their priorities. Many have created work spaces that support their personal mission and interest

in sustainability.

Walk into most office spaces today, and you will notice an absence of the 5-foot-high cubicles and massive window-hogging executive offices that dominated our interiors just 10 years ago. They have been replaced with lower workstations, more glass-walled offices that bring natural light into the open spaces, sound-absorbent materials and collaborative workgroup areas. Employers have become more open-minded about telecommuting and alternative workspaces. Materials

6800 Jer icho Turnpike • Suite 120W • Syosset, NY 11791 • Tel : 516-393-5820 • E-mai l : cmaj id@cibs- l i .org

used to create these spaces are less harmful to the environment. From a real estate perspective many leases contain some environment-friendly language that creates responsibility for both landlord and tenant.

Businesses don’t just change to gain a clearer conscience. They have identified that this behavior happens to be good for the bottom line. It may mean a smaller real estate footprint, lower utility bills and lower recruiting costs as well as higher employee productivity. Some of these benefits might be harder to quantify than others, but there is definitely a net gain to this strategy.

Most real estate professionals have some basic understanding about LEED, and although those in the private sector willing to go through the certification process add up to only a few, the number is steadily growing. When our mature Long Island buildings are ready to be replaced, their footprint will be taken up by

sustainable structures with state-of-the-art features and technology.

Maybe they will have a LEED label or maybe the next great “green

standard.”

Are we there yet? No, but we are many miles ahead of

where we were 10 years ago, and we are gaining

ground each day.

Page 10

Ralph Benzakein, LEED AP, SIORVice PresidentCresa Long Island, The Tenant’s Advantage631-424-4888 x [email protected]

The New York State Budget bill recently passed by the State Legislature and signed by Governor Cuomo is a remarkable example of the cooperation between the Governor and Legislature that New York is enjoying these days. Gone is the interminable wrangling that traditionally caused passage of the budget to lag well beyond its statutory due date. The budget reflects the usual compromises necessary to get the diverse interests existing throughout the state to cooperate with one another. The language included in the budget regarding industrial development agencies (IDAs) is an interesting example of these compromises.

Governor Cuomo had originally proposed sweeping changes to the manner in which IDAs operate, effectively requiring that each application be submitted not only to a local agency, but also to the local regional economic council, comprised of appointees of the Governor. He also sought to limit IDA benefits to certain specified industries.

The budget legislation that passed did not contain either of these proposals. Instead, but for certain limited exceptions discussed below, it eliminated granting tax abatements to retail developments. In recent years, IDAs have

This article was provided by

CIBS board member, Peter Curry, Esq.

Partner, Farrell Fritz, P.C., Uniondale, NY and

Counsel Dave Curry. [email protected]

Peter Curry Esq.,Partner

Counsel Dave Curry

State Impairs Ability of IDAs to Assist RetailersBy Peter Curry Esq., Partner and Counsel David CurryFarrell Fritz, P.C., Uniondale, NY

granted real estate tax, sales tax, and mortgage tax abatements to such projects as the extension of the Walt Whitman Shops in South Huntington and The Gallery at Westbury Plaza.

Part J of the recently passed Bill S2609 amends the General Municipal Law (GML) and Public Authority Law with respect to IDAs. Section 862 of the GML has been amended to restrict the granting of IDA benefits to retail projects. The subdivision forbids the granting of financial assistance for projects wherein the retail portion of the facility constitutes more than one-third (1/3) of the entire project cost. The law defines “retail sales” as “sales by a registered vendor…primarily engaged in the retail sale of tangible personal property…or sales of a service to such customers.”

The law also provides three (3) exceptions to the above rule. A retail project can be exempt from this rule if such project is deemed a “tourism destination,” defined as a project that is likely to be visited by a significant number of people from outside the applicable economic development region. A retail project may also qualify for economic benefits if the applicant can show that the predominant purpose of the project is to provide goods or services that2 are not otherwise reasonably accessible to the residents of the applicable region. Finally, a retail project may qualify for IDA benefits if the project is located in a “highly distressed area.”


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Today we have a vast array of choices for energy generation including solar, water, geothermal, biomass, fossil fuel, nuclear and wind. Since we live on

an island, nuclear power has been discouraged, but we do have plenty of sun, water and wind. Solar panels have been around for many years and take up a lot of

square meters of land area in order to generate the needed output. Wind turbines, on the other hand, go vertical and have a small land area footprint; for a land-constrained

place like Long Island, wind turbines are more ideal. For a wind turbine to work efficiently, the average wind speed in the area needs to be between 4 meters per second (m/s) and

10.5 m/s; Long Island has an average wind speed of 8.0 m/s.

Any time you change the paradigm, you must change the way you assess and contemplate things;

“Think Different” as Apple says. As barbaric as it sounds, we get most of our energy by burning fuel (oil, gas, coal) and are accustomed to the many negatives (reliance on the Middle East, pollution, global warming, nonrenewability and environmental risk from spills). When it comes to something new, there are always people afraid of the unknown, and speculation of the unknown isn’t a welcome bedfellow. Mark Twain once said that his life was rife with catastrophes and misfortunes…most of which never actually happened. I have heard people say that if you stare at a wind turbine you will burn your retinas, that they are causing global warming, that the sound they generate causes tinnitus and that they consume birds like a child eating skittles. Technology has its casualties like the automobile killing squirrels or large glass windows inviting kamikaze birds to commit hari-kari (BTW, what happened to Darwin’s evolution theory, shouldn’t squirrels have evolved by now?). Nonetheless, I can’t see things as ubiquitous as a car or glass window being labeled a bad decision made by mankind.

Municipalities as close as those in upstate New York, New Jersey, Pennsylvania, Massachusetts, Virginia, Maryland and North Carolina have wind turbine ordinances. We need to find out how to make this work here—and to get it to work now. Long Island has at least two wind turbines that I have personally visited, one in Point Lookout and one on Bald Hill in Farmingville. Both gave me good feelings when I saw them, and thoughts like “clean, independent, low cost, even a peace sign” came immediately to mind. There needs to be an education process—and an acceptance process. Please write your legislators and elected officials and ask them to support sustainable and renewable power. It’s a small step to take toward a big step in solving our island’s and nation’s energy problems.

Which Way Is the Wind Blowing?


This article was provided by David Pennetta, SIORPrincipal, Oxford & Simpson Chairman, Economic Development and Immediate Past President, CIBS. [email protected]

CIBS-LI.com

By Dave Pennetta, SIOR Principal, Oxford & Simpson

Chairman, Economic Development Committee of CIBS

The first capacitor was developed in 1745 by Ewald Georg von Kleist, in Germany. Shortly thereafter, Dutch physicist Pieter van Musschenbroek invented a similar capacitor, which was named the Leyden jar, after the University of Leiden where he worked. Benjamin Franklin later popularized the concept during his electricity studies and coined the word “battery.” (By the way, Franklin also coined the electrical terms: “charge”, “conductor”, “plus”, “minus”, “positively”, “negatively”, “armature” and “condenser,” which was the former name for a “capacitor.”)

So, what does this have to do with real estate?

Modern capacitors can be used in businesses and homes to reduce the cost of electricity and its demand. It is most effective when dealing with inductive loads. Inductive devices are considered: “any devices that have coils of wire in their manufacture.” This includes HVAC systems, hydraulics, pumps, and compressors, motors of all types, solenoids, generators, and refrigeration systems. The primary use of capacitors is to store electricity and release it when called for. Electricity moves in waves and is composed of a series of spikes and surges. It travels through the wires this way, and much of its efficiency is lost through heat transfer and other factors. A capacitor has the ability to store this electricity and then release it in a smooth straight-line fashion, which is much more efficient and beneficial to the componentry it is supplied to. A capacitor has the ability to reduce demand by being available for inductive load demands, thereby minimizing demand at the meter. The capacitor simply captures the electricity and releases it when called upon.

A capacitor’s even incoming power will act as a buffer between the inductive load in a facility and the breaker panel, thereby reducing “motor lag.” Occurring

at startup, motor lag is where the most electricity is consumed. The capacitor provides a boost of power at this time, which promulgates a reduction in demand. Moreover, this mitigates wear and tear on the motors and other inductive equipment, enhancing life expectancy as well as lowering maintenance costs. The collateral benefit of a capacitor is that it will act as a surge protector throughout the entire system it is tied into, thereby eliminating the need for local surge protectors, such as for computers and other office equipment. If you are in an area that is prone to frequent outages, you may be aware of the havoc it imparts to computers, printers and other such devices.

Installation of a capacitor is a straightforward process that can be installed by an electrician in conjunction with technical support from the manufacturer. The capacitor looks much like a small breaker box and is tied in after the meter. It should not be confused with “net metering,” for there is no backflow to the utility. Once the device is connected, it requires no maintenance.

Commercial capacitors for applications over 400 amps are usually hardwired, whereas some capacitors for residential and small business applications can be simply plugged into a standard receptacle near the home or business breaker panel. Simply turn it on and you’re saving money.

Payback is fairly quick, depending on the application. One well-known capacitor manufacturer guarantees a minimum of 8% savings with a money-back guarantee. Most applications experience a 12% to 20% savings. Paybacks in smaller applications can take a year or two and somewhat longer in larger commercial applications. Nevertheless, we are not talking long payback periods.

Although not well known yet, building owners should embrace this technology as time goes on. The U.S. Department of Energy has calculated that 25% of billable electricity used in homes and business is nonproductive and unusable. Power factor correction, which is the by-product of a capacitor, is both simple and justifiable and travels directly down to the bottom line.

We installed capacitors at our LEED-certified property (www.motorparkwayplaza.com) last year, and savings have been ranging 20% to 30% over the previous year’s costs.

a device for accumulating and holding a charge of electricity, consisting of two equally charged conducting surfaces having opposite signs and separated by a dielectric.


ca·pac·i·tornoun

If you really want to know more about how a capacitor works, watch this YouTube video: youtube.com/watch?v=ZYH9dGl4gUE

For more information on capacitors, contact Gary Joel Schacker, SIOR [email protected]

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Commercial Real Estate leaders pictured at CIBS/ABLI Annual Awards Dinner From the left in first row are Stephen Hess, Hess Associates, Lifetime Achievement Award; Ed Blumenfeld, President, Blumenfeld Development Group, and Mitchell Rechler, Managing Partner, Rechler Equity Partners, Developer of the Year.

From the left in second row are Lance Korman, Executive Managing Director, Newmark Grubb Knight Frank; Ted Trias, Director of Acquisitions & Leasing, Rechler Equity Partners; Gary Joel Schacker, SIOR, CIBS-LI President and Principal of United Realty, and Scott Berfas, Managing Director, Newmark Grubb Knight Frank and David Leviton, Senior Vice President, CBRE, recipients of the Most Ingenious Deal of the Year Award.

Awards were presented at CIBS 20th Year Celebration. Pictured from the left are Rising Star Award recipient Nicholas Gallipoli, Cushman & Wakefield; CIBS-LI Vice President David Chinitz, Park Place Realty Group, LLC; CIBS-LI President Gary Joel Schacker, United Realty; Achievement Award recipients CIBS-LI Founders Paul Amoruso, Oxford & Simpson Realty Services, Inc. and Herbert S. Agin, Colliers International; Associate Member of the Year Award recipients Michael Ambrosino, Ambrosino Consulting and Salvatore Ferrara, Combined Resources Consulting & Design, Inc. and Rising Star Award recipients Paul Leone, CBRE and Daniel Brandel, CBRE.


CIBS/ABLI Annual Awards

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