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NEW YORK CITY- Active negotiations for storage developments have come to a screeching halt, and existing contracts are in threat of default due to an updated amendment in the New York State 2021 budget bill moving up the deadline for qualifiable self-storage facilities to earn tax abatements, DJ Johnston, partner and senior managing director at B6 Real Estate Advisors, tells GlobeSt.com.
In the state's fiscal year 2020-2021 budget bill, also known as S7506B, storage developers now have up until July 1, 2020, instead of June 2022 to get approved for a New York Department of Buildings permit to enter into the city's Industrial & Commercial Abatement Program. ICAP grants tax exemptions for ground-up, renovated or redeveloped industrial commercial properties. " [It's] only two months from now, and two years ahead of when it was supposed to sunset," Johnston said. "That makes it impossible for any pending storage site to secure the abatement."
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
