By GREGORY ZELLER //
It’s a win for Suffolk and a loss for Nassau, though ultimately, Long Island comes out ahead.
The Suffolk County Industrial Development Agency on Thursday approved an incentives-laden deal for IDP Consulting, a 30-year-old IT firm that will use the assistance to relocate from Jericho to Hauppauge.
The sales tax-abatement incentives package will allow the company to sink $315,000 into leasing, renovating and equipping its new 6,200-square-foot office on Engineers Road.
While companies seeking Suffolk IDA benefits routinely appear before the agency twice – an application phase and an approval phase – Thursday marked “the initial and final inducement” for IDP Consulting, according to an IDA spokesman.
Since the deal amounts to less than $100,000 in tax credits, no public hearing is required, according to the spokesman, who confirmed that IDP Consulting is relocating operations from Nassau to Suffolk.
The Suffolk IDA package and the company investment it triggers should allow IDP Consulting to create seven new jobs with an average salary of $85,000, according to the IDA. But more than just helping a regional company grow, the deal is “a stepping stone for the type of economic growth needed to bolster Long Island’s middle class,” according to Suffolk IDA Executive Director Tony Catapano.
“Being able to retain proven companies and provide them with responsible assistance that leads to growth and job creation is what makes IDAs so valuable,” Catapano said in a statement.
Founded in 1986, IDP Consulting helps clients implement best IT practices, with a particular focus on cloud-based services for small and midsized companies. The firm is also a premier provider of managed hosting and co-location services, providing infrastructure, security and customer support for clients who rely on web-based applications.
Already staffed primarily by Suffolk County residents, IDP Consulting will grow by adding new Island-based employees one to five years out of college, according to founder and CEO Paul Sperry – music to the ears of regional rainmakers concerned by the Island’s “brain drain” dilemma.
“This opportunity from the IDA is enabling us to further accelerate our growth and our ability to assist in transforming more businesses into technology-centric organizations,” Sperry said Thursday.
Although the Suffolk IDA, in recent months, has also moved forward on incentives packages for downtown development projects and apparel manufacturers, the IDP Consulting deal harkens to the agency’s bread and butter: supporting regional technology initiatives.
Already this year, in addition to other tech-focused deals, Suffolk IDA has approved incentives packages for 33-year-old Hauppauge biotech United Biomedical Inc. and Evaric Pharmaceutical, a generic drug-maker started by the owner of Hetero, India’s largest privately held pharma.
Tech firm or otherwise, anytime the agency can assist “an established company with concrete plans for growth” is a “win-win situation,” according to Suffolk IDA Deputy Executive Director Kelly Morris.
“In the short term, the company benefits from lower taxes that enable them to expand operations and create jobs,” Morris said. “In the long term, Suffolk County residents benefit from the creation of quality jobs that can support families and increase the tax base.”