Photo: Island Exterior Fabricators website,

One of the largest employers at the Calverton Enterprise Park will expand its business there rather than relocate out of state.

The Riverhead Industrial Development Agency has agreed to provide nearly $4 million worth of financial incentives to keep Island International Exterior Fabricators in Calverton.

The IDA board held a special meeting Friday afternoon to increase by more than $1 million an incentive package granted earlier this month, after the company notified the agency that the offer provided insufficient incentive.

The prefabricated building facade manufacturer employs approximately 300 people at its Calverton headquarters and said it would add 80 new manufacturing jobs within two years. Island International executives had told town officials they were thinking about relocating their plant to Pennsylvania due to the high cost of doing business in New York.

The IDA board at its regular monthly meeting Feb. 4 approved an assistance package consisting of a $2.7 million real property tax abatement over 15 years, plus sales tax and mortgage recording tax exemptions.

It was less than what the company sought and in a Feb. 13 letter to the IDA board, Island International’s partners said the incentives offered were not enough to offset the high cost of operating on Long Island. The company would save $5.3 million a year in labor costs alone if it relocated to a state like Pennsylvania, they wrote.

In response, the IDA increased the property tax abatement offered to nearly $3.8 million over 15 years, plus sales tax and mortgage recording tax exemptions.

The company will pay nearly $1.7 million in real property taxes over the 15-year period, assessed on land only. It will also pay special district taxes.

The IDA board, which usually meets on the first Monday of each month, held the special meeting on Friday afternoon to act on a new assistance package for the company. The agency did not notify the local news media of the special meeting. A notice was posted on a bulletin board in town hall and on the agency’s website and Facebook page. Notice of the meeting was not posted on the town’s website or Facebook page.


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Denise Civiletti
Denise is a veteran local reporter, editor, attorney and former Riverhead Town councilwoman. Her work has been recognized with numerous awards, including investigative reporting and writer of the year awards from the N.Y. Press Association. She is a founder, owner and co-publisher of this website.Email Denise.