Abandonment Fee: The Time Has Come

The Problem

There are ecnomic problems in Farmingdale and most of Long Island, but one of the problems that sticks out like a sore thumb are the abandoned non-residential properties. Below is a list of non-residential properties:

• Empty lots that have been allowed to grow weeds and are very unsightly
• Empty storefronts, whether they have residential housing above them or not
• Empty buildings zoned for commercial and residential
• Empty religious sites with no active use

Each one of these properties detracts from community and hurts the local Farmingdale community and economy, as well as the Town of Oyster Bay and Nassau County. Each empty store means fewer jobs and less money spent in Farmingdale. If a buyer’s needs can be met at a strip mall further away there is no need for them to eat and shop within the Farmingdale community.  We need to keep visitors coming in and promote Farmingdale businesses as part of an overall strategy for the village.

Empty lots are a blight on any community, especially if they are not maintained at all. An example of this type of area would be the empty lot next to Last Call. The property owner does not seem to care about the appearance of the property nor using it. There are also empty lots for sale along 109 and 110 that are not maintained and have been for sale for a long period of time. 

Landlords that own a number of properties or have other sources of income may not take a personal interest in renting an individual property in Farmingdale.  These multiple location landlords can wait many years for a tenant to meet their demands without any real monetary pressure to keep the property occupied.  This type of landlord hurts Farmingdale.  A perfect example is the property across from Wendy’s at 5031 Hempstead Turnpike or 59 Conklin Rd.- both have been empty for years.  Farmingdale needs to give an incentive to these landlords to negotiate a lesser rent to keep stores open and occupied or to sell to a landlord that will.

The last type of property would be former religious sites.  These are a blight on the community and a drain on village resources.  The Jewish Community Center on 109 has been for sale for over three years.  The owners are asking an unreasonable price for this property. There is currently no incentive for them to sell the property quickly as they are considered tax exempt from property taxes and therefore pay nothing to the Village of Farmingdale nor, since its closure, encourage people to visit the area.  They could sit on this property for another 10 years and still have no need to sell and that is unfair to the residents of Farmingdale.

The Solution

My solution to this problem is an “Abandonment” fee. This fee would be charged to a property owner in violation of a village or town ordinance that states that any non-residential property that is not in use for business for a period of at least one month during a rolling one year period or four months over a two year period will be charged a fee of $1,000 per month per property up to 7500 sq. ft., $2500 for property over 7500 sq. ft., and $5,000 per month for properties over 15,000 sq. ft.  The one month period shall be considered a consistent period of 30 days for non-religious and non -residential use only properties.  For religious properties it would mean use for an average of five days a month (60 days) for the rolling year or 30 consistent days, whichever comes first.  Empty properties either must be properly maintained including fences and landscaping or the fine will apply immediately.  As part of this ordinance the village property tax on empty lots would be doubled to encourage sale and development of the properties. 

The Good

There are a number of advantages to this type of fee.  The fee pushes landlords to lower rent to a more marketable level within a year, which should reduce the period a store is empty.  The fee creates a revenue stream for the village that can be used to promote and advertise the Farmingdale community and projects to businesses and visitors.  The fee will encourage those who aren't working with the community to sell their property to allow for a more studious owner to help fill the community's needs.  The fee will help all business owners to bring down artificially high rents at current locations to more marketable levels.  The more stores in Farmingdale the greater the competition for space and in turn increasing rents for everyone.

The Bad

The fee may create an immediate sale scenario where landlords who have unreasonable rents because of mortgages and taxes to sell the property because the property would be operating at a loss.  The fee may be construed as a tax and hurt government representatives bid for re-election.  The fee may be used and manipulated by current renters to force landlords to artificially lower rents. The fee may be challenged in court and create legal costs to defend. Enforcement may be an issue as landlords can manipulate leases and rentals to keep from paying the tax.

Conclusion

I think an "Abandonment Fee" would promote business in Farmingdale and the only party adversely affected would be the landlords and property owners.  Farmingdale has many good locations for businesses and a business will take a chance on a location if the rent is within reason, however, I believe many landlords are in tough situations by purchasing or refinancing for a mortgage that is above what tenants are willing to pay.  I believe the landlords are asking the tenants to foot the bill for their business mistakes and in turn are not getting renters.  Not having renters in these storefronts is not only hurting the landlord but Farmingdale and the Town of Oyster Bay.