A luxurious stay, compliments of New York taxpayers
In January 2012, the Islip Industrial Development Agency approved $2.3 million in tax breaks for a Marriot Hotel project in Islip in return for creating 30 low-wage jobs. The construction has just begun on this project with non-union, non-local labor. More recently, the Islip IDA passed a 90% local hiring requirement. This is a good step toward prioritizing high performance projects, but the new rule won’t cover already-approved projects like the Marriot.
The Islip IDA certainly was not looking at prioritizing performance when they approved this project. The financing section of Marriot/Briad’s application was incomplete, stating that the financing amounts and terms were “unknown at this time,” even though the application was submitted in October 2011 for a $16.9 million project slated to break ground in January 2012. The deal also created a cost per job of more than $76,000 for jobs that will only pay $26,600 on average. However, the Islip IDA did pay attention where it counts—they received $83,735 in fees for approving this project.
Marriot really hit a home run in Yaphank where the company took advantage of tax breaks from the Brookhaven IDA, receiving $400k in tax exemptions from 2008 – 2010 and committing zero jobs in return.
Marriott International is one of the world’s leading hoteliers with some 3,700 operated or franchised properties in more than 70 countries. It posted $12.37 billion in sales in 2011. Briad Group is a franchisee of Marriott, and operates development, construction and maintenance divisions. Briad Lodging Group Central Islip, LLC, is the developer of the Marriot projects in Islip and Yaphank. Briad Group boasted $500 million in sales in 2011.
Industrial Development Agencies: Summary of Data, Office of the New York State Comptroller, at http://www.osc.state.ny.us/localgov/datanstat/findata/index_choice.htm
Marriott International, Inc., Financial data, at http://www.hoovers.com/
The Briad Group History, The Briad Group, at http://www.briad.com/history
Town of Islip IDA, Proposed Application for Financial Assistance: Briad Development East, 10/4/11, Town of Islip Industrial Development Agency. Obtained from the Town of Islip IDA through a FOIL request, on file at ALIGN.
A New Hotel for Central Islip, Press Release, Town of Islip Economic Development Office, at http://islipida.com/news/25-a-new-hotel-for-central-islip
Developer Seeks Central Islip Hotel Site, by Sarah Crichton, Newsday, October 23, 2011, at
Town of Islip IDA, Internal Report: Briad Development East, Town of Islip Industrial Development Agency, generated July 20, 2012. Obtained from the Town of Islip IDA through a FOIL request, on file at ALIGN.
Newsday: Low-wage job protest at Islip Marriott site
August 16, 2012. The construction site of the future Islip Marriott in Central Islip was the stage for a protest Tuesday where about a dozen critics decried what they call the use of nonunion, nonlocal labor on the site and the kinds of poverty-wage jobs they say will be created at the hotel once it’s built. Continue reading
PRESS RELEASE: A LUXURIOUS STAY, COMPLIMENTS OF LONG ISLAND TAXPAYERS
Islip, NY—Dozens of workers, community members, faith leaders, labor leaders, and activists will host a special event in Islip on Tuesday, when they induct the Islip Marriot into the Corporate Tax Dodgers Hall of Shame. Advocates are launching a new Hall of Shame award and website next week to draw attention to the corporations throughout Long Island and New York State that receive tax breaks but fail to create jobs, or create only poverty-wage jobs in return. Continue reading