Riverhead Town and school district officials implored the Suffolk IDA to reject an application for a 10-year, 100-percent property tax abatement for the owner of the culinary arts building.
“We are working hard to revitalize our downtown,” Riverhead Supervisor Laura Jens-Smith said. The Suffolk County Community College facility, “no longer conforms to what we’re looking to do downtown,” she said. “It’s closed on weekends, leaving a blank, open space. It’s closed during the summertime.” Students also use “our prime parking area,” she said.
“This is not an economic generator for downtown,” Jens-Smith said.
Suffolk IDA executive director Anthony Catapano, who served as the hearing officer in a public hearing held this morning at the culinary school on East Main Street, said the rationale for the exemption was that the property would be exempt if it were owned by the college, which is a 100-percent tenant of the building.“ The tax abatement, he said, is “a complete pass-through.”
The college has 10 years left on its existing lease with Culinary Arts Riverhead LLC, a company owned by developer Ron Parr.
Suffolk County Community College director of legislative affairs Ben Zwirn, former supervisor of the Town of North Hempstead, said he understands Riverhead’s position. “But if you punish the landlord, you punish the college,” he said. Ultimately students pay the price, he said. “There’s no way you can punish the landlord without hitting the college right between the eyes,” he said.
Zwirn said the school has 832 students nine full-time staff, 14 part-time staff and 35 adjunct faculty.
“Yes they park here but they also shop here and eat here,” he said.
County Legislator Rob Trotta (R-Fort Salonga) framed his complaints about the proposed abatement in the context of bad decision-making by county government motivated by campaign contributions by entities like the Parr Organization.
“If I were supervisor of Town of Riverhead, I’d be pissed,” Trotta said.
“The college got itself into a horrible, horrible lease,” he said. “The taxpayers of this county are getting screwed.”
Speaking directly to Parr, who was seated across the room, Trotta said, “You’re making a fortune.”
Parr said that characterization was unfair.
“At the end of this lease, you’ll be paid almost a million dollars a year — with no taxes,” he said.
“I took the risk,” Parr countered.
Trotta said the situation wasn’t the developer’s fault; it was the county’s, he said.
Riverhead Town Attorney Robert Kozakiewicz said the proposed abatement would be “going backwards” since the payment in lieu of taxes agreement just ending phased in graduated, increasing payments. The proposed abatement would be at 100 percent for the entire 10-year term.
Riverhead School District Deputy Superintendent Sam Schneider noted that neither the college nor Parr’s company paid a single dollar in PILOT payments for the past 10 years. When that came to light, he said, crediting Riverhead assessor Laverne Tennenberg, the governments were unable to collect and were forced to bring a lawsuit to recover the past-due payments.
“Until our final negotiation session, which occurred after the town and the district had filed our joint lawsuit, both Mr. Parr’s group and the college had refused to pay, with each party pointing the finger of responsibility at the other party,” Schneider said. “At one point, it was suggested that payment would be forthcoming if the town and the district agreed to support an application for a new abatement. We made it clear that we would not support any quid pro quo,” Schneider said. “Representatives from the Suffolk IDA specifically stated in this negotiation that the Suffolk IDA would not grant a new abatement on this property without the assent of the town and the school district,” he said.
“We were therefore very surprised to learn that this hearing was taking place today given the fact that, while the parties have agreed to finally pay their debts, some of which have been arrears for 10 years, the checks have not even been received.”
Both the Riverhead Town Board and the Riverhead Board of Education have approved a stipulation of settlement with Culinary Arts Riverhead LLC, settling a lawsuit brought to recover the unpaid PILOT payments due over the past decade.
The Suffolk IDA will hold its regular meeting tomorrow in Hauppauge and is expected to act on this application, Catapano said.
A transcript of today’s hearing, prepared by a court reporter, will be available to board members before tomorrow’s meeting, Catapano said.
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