Petition to annex Islandia‑bordering office park draws questions on sewer, taxes and review

The Town of Islip held a joint hearing on a petition from Crest Crossroads North LLC to annex four commercial lots adjacent to the Village of Islandia so the owner can redevelop an existing corporate park into a medical office campus.

Anthony Guardino, a partner at the law firm Farrell Fritz representing the petitioner, told the board the annexation would resolve split jurisdiction on the site and allow the property to connect to public sewer. "These buildings today discharge about a little about 10,500 gallons of sanitary waste into an on‑site septic system," Guardino said, adding the proposed redevelopment would increase estimated discharges to about 18,000 gallons per day and therefore require sewer service.

Guardino said the county has approved a conceptual reallocation of sanitary sewer capacity from the Wind Watch facility that could be applied to the parcels, and argued that connecting to public sewer would reduce nitrogen loading to the sole‑source aquifer and the Great South Bay. He also said village zoning and available development bonuses would better accommodate the petitioner’s plan than the current town I‑1 district.

Michael Guerrero, a partner at Farrell Fritz and the petitioner's tax expert, described the petitioner's valuation analysis. Guerrero said the town tax roll lists a market value for the corporate park of roughly $47.5 million, producing about $930,000 in property taxes; his exhibit estimated a post‑investment market value near $53.5 million and a potential tax yield of about $1.1 million. He cautioned that market conditions and vacancy rates could change those outcomes.

The town’s commissioner of planning and development told the board planning staff had reviewed the petition and related concepts and raised concerns. The commissioner noted the applicant has discussed other possible uses, including multi‑story self‑storage, parking conversions and a daycare, and urged review of the combined, cumulative impacts of multiple projects on building height, floor‑area ratio, traffic and nearby residential areas. "The stated reasons for annexation are also not supported by the petitioner's record," the commissioner said, adding that the county sewer agency's action is conceptual, remains subject to SEQRA and does not substitute for local land‑use review.

Board members questioned Guerrero about the tax estimates and asked whether a sale to a nonprofit health system could remove the property from the tax rolls. Guerrero said such acquisitions are possible in the market but said he had seen no indication large health systems intended to buy this specific campus and argued the corporate park is a distinct, freestanding property.

After questions, the supervisor moved to close the public hearing, reserve decision and keep the record open for at least 10 days for written submissions; Councilman Lorenzo seconded the motion, and the board approved it by voice vote.

The record will remain open for the period announced; no final action on the annexation petition was taken at this hearing.