Board Approves Tax Settlements

2008-04-25 / Front Page

By Stephanie Mariel Petrellese

By Stephanie Mariel Petrellese

Several large tax certiorari settlements listed on the agenda of the April 17th meeting of the Garden City Board of Trustees raised some eyebrows among residents and necessitated a further explanation from Village officials.

Eight local properties challenged their original tax assessments in court, and then decided to settle with the Village. Mayor Peter Bee said the amounts were lower than what the properties originally wanted. The Village anticipated the settlement awards and has included the funds in the 2008 and 2009 budgets.

The largest settlement the Board approved went to Wyndham Condominiums for $900,000. By law, condominium apartments are not assessed at their market value, and are generally assessed way below. "That's something we have to live with," said Village Counsel Gerard Fishberg. He said Democrats from New York City in the State Assembly have continually been able to block any attempt to change the law on how condos are valued due to the major impact it would have on city condominium values.

Another large settlement went to Cherry Valley Realty, Cherry Valley Country Club for $500,000. Fishberg explained that assessment of country clubs is calculated via a routine formula. "It's basically a worksheet...dealing with the income and expenses of the club," he said.

Second Deputy Mayor Thomas Lamberti recused himself when it was time for the Board to vote on the settlements because he is a member of the Cherry Valley Country Club. He claimed it is possible he will benefit, depending on how the club decides to use the settlement money. Mayor Bee and Trustee Robert Rothschild disclosed that they are also members but believed recusal was not necessary.

Fishberg told the Garden City News after the meeting that trustees can disclose and recuse themselves from a vote if they have a pecuniary interest in the outcome. The trustees approve the settlements and do not get "intimately involved" in the process. They rely on Village counsel's judgment and experience to negotiate the settlements. Although acknowledging that it is possible the trustees might be benefited as club members if the club, for example, decides to use the settlement money to enhance its facilities, Fishberg said he did not think this would be a decisive factor influencing their vote.

He added that recusals based on membership in a club or other organization could create a problem if the majority of trustees are members. That particular club would not be able to get a settlement approved since there would not be a quorum. In the case of Cherry Valley, a quorum existed even if Trustee Rothschild and Mayor Bee recused themselves along with Second Deputy Mayor Lamberti.

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