Dear Mr. Kearney:
I am writing this letter on behalf of and at the request of our client, the Herricks Union Free School District (the “District”), with regard to the application of HSRE-EB NORTH HILLS, LLC, for certain financial assistance which, if granted, would deviate from the Agency’s Uniform Tax Exemption Policy with respect to the payment of real property taxes. The application pertains to a property located at 99 South Service Road, Incorporated Village of North Hills, Town of North Hempstead, County of Nassau, New York (Section: 8; Block: A; Lots: 602C and 602D). The property is currently the location of Bristal Assisted Living. It is our client’s position that granting such an application would work to the detriment of the District and its community.
An initial PILOT Agreement regarding the property at issue was entered into in December, 2002. At that time, the District and the community supported the project. The project provided a real benefit to the community by providing the community with an assisted living facility. Senior citizens in the Herricks community could move into an assisted living facility and still remain in the area near friends and family. Although the District did not receive full property taxes at the time, the District received significantly more funds than it had previously received for that property. Moreover, it was anticipated that the PILOT Agreement would expire after ten (10) years and the property would return to the tax rolls.
In or about 2008, the IDA agreed to reduce PILOT payments associated with the property. Neither the District, nor the community received any additional benefits in return for this reduction. Both the District and the community stood opposed to the reduction in payments, but the deal was finalized before any action could be taken.
It is our client’s position that the current application for financial assistance, again, does not provide any additional benefit to the community. The facility is not being expanded and there is no additional development taking place. The application for financial assistance is simply that – a request for lowered costs to the property owners, presumably at the expense of other taxpayers in the community.
The District fails to see any compelling reason for the IDA to grant HSRE-EB NORTH HILLS, LLC’s application for financial assistance, as there is no corresponding benefit to the community. The loss of revenue to the District and the community will create an additional burden on the taxpayers, while simply reducing the burden on HSRE-EB NORTH HILLS, LLC.
Thank you for your consideration of this matter. Should you wish to discuss this matter further, please feel free to contact me.
Lawrence J. Tenenbaum
Lawyer for
Herricks School District
