A Hauppauge Machine Shop Is Betting $35 Million on the AI Buildout

Basaran Grinder Corp. occupies 15,000 square feet on 1.35 acres at 100 Laser Court in Hauppauge. It builds high-precision CNC grinding machines and automated manufacturing systems, it employs 23 people, and its owner, Murat Basaran, holds all of it. By the standards of the Hauppauge Industrial Park it is a small company.

It has asked the Suffolk County Industrial Development Agency to help it spend $35,050,000.

What the money buys

The plan, as filed with the agency, is to acquire and redevelop the roughly 30,000 square foot industrial building at 160 Oser Avenue, add another 25,000 square feet to it, and put capital into the existing Laser Court headquarters at the same time. The two sites would run as a single manufacturing campus covering machine tool production, engineering, assembly, testing and precision grinding.

The line items are specific. The 160 Oser building costs $9,400,000 to buy. Renovations run $2,000,000 at each address. The new addition is $7,000,000. Engineering and architectural fees are $300,000 at Oser and $100,000 at Laser Court. The largest single number is not the building at all: $10,000,000 of manufacturing equipment goes into 160 Oser and another $2,000,000 into 100 Laser Court, with $1,700,000 more in non-manufacturing equipment across the two. Legal fees and financing charges add $550,000.

Construction is projected to begin in the first quarter of 2027 and finish in the fourth quarter of 2029, with about 95 construction jobs along the way.

Three steps from a data center

The reason a grinding machine company is expanding in 2026 is worth following, because it is not obvious and it is not about grinding machines.

Artificial intelligence data centers consume enormous quantities of electricity, and the power plants going up alongside them run on gas turbines. Gas turbine components have to be ground to very tight tolerances. Basaran does not make the turbines and does not run the data centers. It makes the machines that make the parts that go into the turbines that power the buildings. The state Department of Labor, in the regional briefing it published this month, named the company and tied the expansion directly to that chain of demand.

That is the shape most Long Island manufacturers should be looking for. Very few members are going to sell anything to an AI company. A great many of them are two or three links up a supply chain that is being pulled by one.

What the public side costs

The agency's cost benefit analysis for 160 Oser Avenue lays the trade out plainly. The building carried $128,547 in 2025 and 2026 property taxes, about $4.28 per square foot, in the Hauppauge school district. The proposed payment in lieu of taxes runs ten years and abates 50 percent of the tax due in year one, stepping down five points annually to 5 percent in year ten.

Over that decade the company would pay $1,707,716 in property tax against $2,355,470 owed without the abatement, a saving of $647,754, or 28 percent. Add a sales tax exemption worth $577,500 on renovations, the addition and equipment, and a mortgage recording tax exemption of $182,100 on a $24,280,000 mortgage, and the total public benefit reaches $1,407,354.

Against that, the company commits to 23 existing jobs and six new ones: three in the first year at an average of $90,000, three in the second at an average of $100,000. Payroll goes from $2,199,094 to $2,769,094. The average salary across all 29 positions is $95,486.

Six permanent jobs for $1,407,354 works out to roughly $235,000 of public benefit per job. That is the honest arithmetic, and members are entitled to it. The other side of the ledger is $35,050,000 of private capital, 95 construction jobs, an obsolete building returned to active manufacturing use, and payroll at nearly double the regional average.

The board approved an inducement resolution for the transaction on June 25 by a vote of seven to nothing, held a public hearing on July 20, and took up the request for a final resolution at its regular meeting on August 13.

The numbers a Hauppauge tenant should write down

Set the AI story aside for a moment. Two figures in these filings are usable by anyone with space in that park.

A 30,000 square foot industrial building in Hauppauge traded at $9,400,000, which is about $313 per square foot. And the tax load on that building is $4.28 per square foot, which is the rate the agency also used to project the tax on the 25,000 square foot addition. Those are current, documented comparables, filed by the buyer, reviewed by a public agency.

What it means for members

If you own or lease industrial space in or near the Hauppauge Industrial Park, put $313 a square foot and $4.28 a square foot against your own building this week. If your landlord is preparing a renewal letter, those are the numbers underneath it.

If you are a contractor, fabricator, electrician or equipment installer, there is a $35,050,000 project with $13,700,000 of equipment and 95 construction jobs that starts in the first quarter of 2027. Bid lists for a project that size are assembled a year ahead. Introduce yourself now rather than in 2027.

And if you are a manufacturer wondering whether the AI buildout reaches you, trace your customers upward two links instead of one. The demand arriving in Hauppauge did not come from an AI company. It came from the turbines that keep one running.