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The Pulse of Progress: Exploring the Transformative Impact of the LI-IPH on Long Island’s Economy

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As the President and CEO of HIA-LI, I am proud that HIA-LI continues to serve as the steward and advocate for the Long Island Innovation Park at Hauppauge (LI-IPH).

One important recommendation that came out of the LI-IPH’s April 2019 Sustainability Study was that we should take a serious look at integrating workforce housing into the Park. It’s a concept in keeping with the “live-work-play” model that has worked so successfully in other Long Island communities such as Patchogue, Ronkonkoma, Farmingdale, and Bay Shore.

To that end, we teamed up with the Long Island Builders Institute (LIBI) and convened a March 28 meeting of residential developers to discuss opportunities in the Park. Joining me at the roundtable discussion was Michael Florio, LIBI’s CEO; Joe Campolo, Managing Partner at Campolo, Middleton & McCormick, LLP, an HIA-LI Board Member, and Chair of our Economic Development Task Force; Peter Hans, the Town of Smithtown Planning Director; and Cara Longworth, Vice President and Long Island Regional Director of Empire State Development.

Cara Longworth discussed the Long Island Investment Fund (LIIF), which focuses on large-scale, transformative projects that will have lasting impacts on the bi-county region. Eligibility for the fund was expanded last year to include infrastructure for transformative multi-family housing development projects to support regional industry growth.

She added that municipalities that achieve the State’s “Pro-Housing Communities” designation – because of their hard work to address the housing crisis – will receive priority in their applications for funding streams like LIIF.

Peter Hans spoke about zoning issues, specifically the town’s overlay district – approved in 2019 – which now permits residential development on certain parcels in the LI-IPH depending on size and location. Right now, Peter said there are 13 parcels eligible for mixed use/residential development.

The dialogue continued on April 16 when we welcomed a distinguished panel to discuss the immense opportunities at the LI-IPH. This event – titled “Why Do Business in the Largest Innovation Park in the Northeast” – was held at the Suffolk Y Jewish Community Center in Commack. It underscored our collective commitment to fostering economic growth and innovation at the LI-IPH.

The numbers are worth repeating: LI-IPH houses 1,350 companies who employ 55,000 workers and generate $13 billion in economic output. In short, one in 20 jobs on Long Island are dependent on the fiscal vitality of the LI-IPH. That’s impressive.

The morning began with inspiring opening remarks from Suffolk County Executive Ed Romaine; Town of Islip Supervisor Angie Carpenter; and Smithtown Councilman Tom Lohmann, the town board’s liaison to the LI-IPH. Their insights set the stage for a robust dialogue on the strategic advantages of doing business in the Park.

Moderated by Joe Campolo, the subsequent panel discussion featured key stakeholders including Kelly Murphy, Executive Director and CEO of the Suffolk County Industrial Development Agency (IDA); Mike Narula, CEO of Orbic, a firm new to LI-IPH that will be bringing a thousand new jobs from India; alongside Angie Carpenter and Tom Lohmann. Each panelist provided a unique perspective on the evolution and future of the LI-IPH.

Our panelists shared exciting developments within LI-IPH, including the sale of a $21 million vacant data center to Links Logistics, the transformation of a $5.3 million deal into a new headquarters for E+M Logistics, and a $44 million investment by Venture One Acquisition to create new industrial space. These investments not only demonstrate the economic vitality of LI-IPH but also highlight our adaptability and forward-thinking approach to growing our infrastructure and meeting the business needs of park tenants as well as the Long Island region.

Joe Campolo’s presentation focused on the transformation of LI-IPH from a traditional industrial park to a thriving innovation hub. He outlined the concept of an “Edge City,” which integrates business, entertainment, and living spaces, allowing for a dynamic community where individuals can live, work, and thrive without long commutes. This concept has turned LI-IPH into a model for modern economic development.

The Suffolk County IDA has been instrumental in supporting this transformation. Kelly Murphy noted that over the past six years, the IDA has facilitated significant investments that have led to job creation and retention, enhancing the economic fabric of Suffolk County.

Over the past three years alone, the Suffolk IDA has provided support to 21 projects in the LI-IPH, with a total private capital investment of more than $527 million, a total of nearly 5,000 jobs created or retained, with an annual payroll in excess of $350 million.

The Suffolk IDA’s efforts underscore the powerful impact of strategic governmental partnerships in regional economic development.

Council Lohmann spoke about a recent HIA-LI/Town of Smithtown partnership that saw the installation of over 400 sponsored flags throughout the LI-IPH, a visual representation of our pride and collective identity as a major economic engine. This branding effort – combined with new entryway signage thanks to the town – helps solidify the park’s presence in the community and beyond, reinforcing our role as a key player in Long Island’s economic landscape.

Conclusion: A Bright Future Ahead

As we look to the future, LI-IPH continues to be a beacon of innovation and economic prowess. Our ongoing initiatives, such as the development of workforce housing and infrastructure improvements, are poised to enhance our competitiveness and attractiveness to businesses and professionals alike. The discussions held during these two events are a testament to the collaborative spirit that drives our success.

We are grateful to all attendees, panelists, and partners who contributed to this enriching discussion. Together, we are setting the stage for continued prosperity and improvement at the Long Island Innovation Park at Hauppauge.

For more information about the Long Island Innovation Park at Hauppauge, go to www.li-iph.org. For information about HIA-LI and our initiatives, please visit www.hia-li.org. Let’s continue to innovate and grow together, building a thriving economic future for Long Island.

Navigating the Future: Insights from the 30th Annual Long Island Economic Summit

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Pictured: A view from the dais at the February 15, 2024 30th Annual HIA-LI Long Island Economic Summit.

The 30th Annual Long Island Economic Summit, held on February 15, 2024, began with a clear message: Long Island “is a good place to do business.”

This year’s summit, drawing on the findings of the 2024 Long Island Economic Survey conducted by Adelphi University and Citrin Cooperman, brought to light the resilience and adaptability of our local business community. Business leaders across both counties – who were surveyed between November 1, 2023, and January 15, 2024 – made it quite evident that despite some hurdles, there’s a strong sense of optimism about doing business here. The event served not only as a platform for analysis and discussion but also as a beacon of positive expectations for the region’s economic landscape.

I’d like to summarize the findings and share some of the analysis from the summit’s distinguished panelists.

Survey Highlights

  • Taxes, retention of young talent, and inflation are a major concern for most businesses.
  • Long Island businesses seem hesitant to explore the benefits of AI compared to the rest of the country.
  • Supply chain issues, though not as extreme as years past, continue to linger.
  • Compensation, human resource issues, and workforce development remain a high concern.
  • Confidence in government’s role continues to deteriorate, however Long Island continues to be perceived as a good place to do business.

The Role of AI

Panel moderator John Fitzgerald, Managing Partner at Citrin Cooperman, noted the mixed feelings surrounding AI, pointing out that “Long Island businesses seem hesitant to fully explore the benefits of AI compared to the rest of the country.” This underscores a crucial area for potential growth and innovation.

To help meet that need, HIA-LI will be partnering with the LIA in an April 3 Long Island Artificial Intelligence Conference. The goal of the conference is to bring businesses, entrepreneurs, academia, not-for-profit organizations, and government officials together to discuss how our region can play a leading role in the development and implementation of AI technologies.

For more information, go to www.LI-AI.eventbrite.com.

Government Support

Dr. Lawrence Eisenstein, VP and Chief Public and Community Health Officer at Catholic Health, stressed the importance of government support, especially when it comes to healthcare reimbursements. “We need more help in terms of increased Medicaid and Medicare revenue,” he said. “Nobody would go into one of your businesses and say I want services, but I’m only going to pay you 60 percent.”

Food Insecurity

Paule Pachter, President and CEO of Long Island Cares, and an HIA-LI board member, emphasized the critical challenge of food insecurity on Long Island, stating, “A family of four who’s earning $60,000 or $70,000 a year are finding themselves going to food pantries or going to food banks to ask for some assistance. They don’t need everything. But they need some things in order to stretch their budget.”

Economic Outlook

Jeffrey Barber, Executive Vice President of Dime Community Bank, provided an insightful perspective on the economic outlook, highlighting the financial landscape’s strengths and potential growth areas. He noted, “There’s a tremendous amount of liquidity in the market. Many companies sat on those funds during COVID and didn’t know where things were headed.” He added some good news, “They’re now at a point where they’re comfortable spending and creating jobs.”

Talent Retention

Rich Humann, President and CEO of H2M architects + engineers, and an HIA-LI board member, discussed the ongoing challenge of retaining young professionals, underscoring the importance of creating connections, opportunities, and a compelling work environment to encourage talent to stay on Long Island. “Our responsibility as business owners is to provide the kind of environment and opportunity that would keep people with companies like ours.”

Higher Education

MaryAnne Hyland, Dean of the School of Business at Adelphi University, added to the discussion on talent retention by emphasizing the need for higher education institutions to adapt and innovate in preparing the workforce. “We need to make sure that we are providing students with programs that provide cutting-edge knowledge and skills that focus on the demands of the workforce of today and tomorrow,” she stated, highlighting the critical role of education in workforce development.

Moving Forward: A Collaborative Vision for Growth

The 2024 Economic Survey, coupled with the insights from the Economic Summit, paints a picture of a region at the threshold of significant growth, buoyed by optimism, yet mindful of the hurdles that lie ahead. The collective wisdom of the panelists, alongside the statistical data, underscores the need for collaborative efforts in innovation, government support, and talent retention strategies.

As we look to the future, the path for Long Island is clear: leveraging the insights and optimism shared at the summit to foster an environment where businesses and communities can thrive. With a commitment to addressing the highlighted challenges head-on, Long Island is poised to navigate its economic journey with resilience and vision.

You can read the full 2024 Long Island Economic Survey here.