Applying For Financial Assistance
Services
Let us reduce your overhead to grow your business…
Whether you are an international business that is relocating or a small locally owned business looking to grow, the Riverhead IDA can offer assistance.
Our staff has direct access and an in-depth understanding of incentives. They work closely with both private and public agencies to package incentive proposals targeted to the needs of individual businesses.
The Riverhead IDA can provide four basic benefits to a qualified project: low cost financing, a deferment of real property taxes, and exemptions from both the mortgage recording tax and sales tax attributable to the construction and equipping of an IDA project. Riverhead IDA can be used as a financing mechanism by allowing the applicant access to the industrial revenue bond market, which can often translate in to lower rates and more favorable terms than conventional financing. Or if applicants do not need financing or can secure it though means other than the IDA, the agency can still provide tax advantages mentioned above through a straight-lease transaction.
- REAL PROPERTY TAX DEFERMENT - The IDA offers a property tax abatement/deferment for qualified projects. This incentive allows the owner of a qualified business to have a scaled in assessment on their property taxes over a ten-year period.
- SALES TAX EXEMPTION - Any equipment or materials bought in conjunction with and incorporated into an approved project shall be exempt from the current sales tax rate.
- MORTGAGE RECORDING TAX EXEMPTION - The mortgage tax normally applicable to deed transfers will be excluded on an approved and qualified IDA project. The current rate of tax is 1.05%.
- TAX EXEMPT BONDS - For industrial or manufacturing concerns, the IDA offers financing through tax exempt Industrial Revenue Bonds. The bonds can offer a lower interest rate than traditional mortgage or loans.
The IDA staff will work diligently to expedite your project through the permitting process and act as a liaison between developer and regulatory agencies. We also coordinate with county and state agencies to offer job-training opportunities, as well as other incentives to assist in your company's to growth in Riverhead. Working with financial institutions and public sector programs, we act as a resource and conduit to the most cost-effective financing to match your capital needs and business plans.
The Riverhead IDA is also the home of the Riverhead Economic Job Development Corporation.
Policy Guidance on Project Criteria
The Process (How to Apply)
Financial Assistance Application
The process for obtaining assistance from the Town of Riverhead IDA is relatively simple. Just follow these few steps:
- It is highly recommended that a preliminary meeting be arranged between the Town of Riverhead IDA staff and your decision-makers involved with the project (typically attorney, CPA/CFO, operations). We like to learn about your company's history and growth potential (or proposed development project). In addition, this initial meeting explains IDA procedures, fees, timelines for public hearing notices and Board meetings, required paperwork (such as vendor lists, Riverhead permits, etc.) and other important issues involved with development projects. At the very least, a telephone conversation can resolve most application questions.
- Prepare and submit an “application package” to the RIDA. The application package and all supporting documents must be completed and submitted 20 business days prior to the next scheduled Board meeting if the application is to be considered during that meeting.
- Please complete the PDF application. Please provide 1 original and 1 copy of the application and be sure that the certification pages are initialed, signed and notarized. Please ensure that all material listed on the Material Submission list is included.
- Please provide two sets of the company's financial statements for the last two fiscal years; the company's annual reports (or 10-K's if publicly held) for the two most recent fiscal years; quarterly reports (form 10-Q's) and current reports (form 8-K's) since the most recent annual report, if any; in addition, please attach the financial information described above for an expected guarantor of the proposed financing, if applicable. We suggest that you attach a letter requesting the return of the financial statements after they have been reviewed.
- Please provide a completed Environmental Assessment Form. The Agency can utilize the approved environmental form from the Town of Riverhead.
- Please provide the most recent DEPARTMENT OF LABOR FORM NYS 45 for the entity that will be hiring for the project. Please remove the employee Social Security numbers.
- A $2,000 non-refundable application fee for projects with a total project cost under $5,000,000. A $4,000 non-refundable application fee for projects with a total project cost of $5,000,000 and above. Make check payable to the Town of Riverhead Industrial Development Agency.
- The Agency may also require a commissioned study to support your application.
3. After staff review, the application package is then presented to the Board of Directors.
4. A public hearing must be scheduled to solicit public comment on all projects seeking Riverhead IDA assistance. Most material is subject to disclosure.
