Transparency Needed

To the Editor:

The scope of today's property tax crisis cannot be understated. A family's financial resources in Nassau and Suffolk counties and throughout the state are slowly being squeezed to the point where many can no longer afford to live in their communities. Municipal, school and special district operating budgets are now the focus of close public scrutiny.

What is often overlooked by many well-meaning politicians is that anytime you grant a homeowner or business a property tax break, someone else has to pay the bill. If you grant a property tax exemption to a special group of individuals - no matter how deserving - the bottom line is that their neighbors will see increases in their property tax obligation to make up for the reduced tax revenue. The same can be said of special Industrial Development Agency (IDA) deals.

While the underlying goal of an IDA is to offer tax incentives to promote business development in a town or county, sometimes you have to look at individual development projects and question what is going on. Did the Covanta garbage recycling plant located in the Town of Hempstead - valued at over $225 million dollars - deserve a special IDA agreement whereby the billion dollar company would not pay property taxes or any PILOT (payment in-lieu of taxes) payment for 50 years? Covanta operates a similar plant in the Town of Babylon and is required to make PILOT payments. Why is the Town of Hempstead IDA so insistent that the buyer of one of the most prestigious and valuable pieces of property in the Village of Garden City - the Garden City Hotel - be granted a multi-million dollar property tax break, as well as being exempt from paying one million dollars in sales tax and $777,000 in mortgage recording fees?

Encouraging new business development in aging and underutilized downtown areas is a worthy cause. However, when struggling "mom and pop" stores are forced to pay higher property taxes because of a special tax break that is being given to a multi-million dollar developer, it is imperative that every business and taxing jurisdiction be given ample time to examine the details and impact of the IDA decision.

Publishing an obscure legal notice in a newspaper to announce a public hearing on an IDA initiative may comply with the spirit of the law, but common decency would demand a more aggressive and transparent approach. There is clearly more transparency in applying for a fence permit, then there is in advertising multi-million dollar tax breaks for businesses. Not only do many municipalities require that a sign advertising the hearing be placed on a homeowner's property, but notification letters are mailed to neighboring properties.

In the spirit of cooperation, I hope that all IDAs will go the extra mile and communicate more aggressively with school districts, local chambers of commerce, civic groups and local elected officials when business development plans or agreements that will impact the tax base in a community are proposed. Conversely, school districts, the most affected by IDA agreements, must become more involved in the process. Too often, IDA letters are often filed away. Fortunately, in the case of Garden City, because of the publicity generated in the media in recent weeks, the school district's superintendent and attorney attended the Town of Hempstead's IDA meeting held on May 28 leading to the plan being tabled for further discussion.

I call on all IDAs to follow the Hempstead example and delay the signing of any new agreements until all the players are brought to the table.

Harvey B. Levinson

Chairman, Board of Assessors

Don't Shift Taxes

Printed By Request:

Mr. Fred Parola

Town of Hempstead IDA

Dear Mr. Parola,

Unfortunately, I had to leave the IDA meeting last Wednesday, May 28, 2008, before I had an opportunity to address your board. I respectfully request that my statement be part of the record. As a residential taxpayer from Garden City, I am extremely concerned about the pending IDA application by the Alrose Corporation for tax exemptions in connection with their purchase of the Garden City Hotel.

I believe that granting an IDA tax exemption to the Alrose Corporation would be wrong for several reasons and definitely not in the best interest of my community. Any deal between Alrose and the Garden City Hotel is a private real estate transaction and should be treated as such. Accordingly, if Alrose would like to acquire this property, then they should obtain private funding and not look to the IDA for a subsidy or preferential treatment. Perhaps the purchase price is too high or Alrose's planned renovation is too aggressive. In either case, as a responsible citizen and taxpayer, I absolutely do not believe GC taxpayers should be impacted. I should not have bear the burden of the hotel seller's desire to get top dollar, nor should I be required to help renovate the hotel at my expense and for Alrose's benefit. Considering the fact that the Garden City Hotel currently boasts the title of "the Only Five Star Hotel on Long Island", it is hardly a distressed, undesirable property in need of any IDA public assistance. Ultimately, Alrose's tax responsibility would be unfairly shifted to Garden City residents and small commercial taxpayers. This is neither fair, nor is it right!

Taxpayers should not be required to subsidize this situation, or other similar transactions between private parties and commercial interests. I do not wish engage in open debate concerning IDA tax benefits, as I fully acknowledge significant merits. However, I earnestly request that you consider the interests of all impacted when making your decision. Please do not permit the desires of one or two profit-seeking entities to outweigh the needs, concerns, and financial interests of our entire community, especially Garden City's residential taxpayers, small business owners, and our school system.

Cathy Wood

Analysis of Value Of Hub Transportation Network Needed

The following is a presentation given at the Eastern Property Owners Association meeting on June 2nd by Jim Bauer

Garden City needs to re-evaluate its opposition to the proposed transit portion of the Nassau Hub by conducting a detailed, fact-based economic study on the impact to Garden City. This is particularly significant in light of the fact that since 2005, gas prices have more than doubled (price per gallon in 2005 of $2.00 vs. $4.25+ in May 2008)1 and are expected to continue to increase. At the same time, vehicular traffic continues to snarl major north-south and east-west streets (Stewart, Franklin, Clinton) and parking spaces in Garden City have become a precious commodity. Lacking a robust public transit system in the future will negatively impact the value of residential and commercial real estate; the attractiveness of Garden City as a location for employers and impact the revenue potential of local merchants.

The previously cited objections, that such a transit system 'would be an environmental disaster for our community'2 are clearly red herrings and not fact based. In fact, by reducing the amount of vehicular traffic and by insuring that the transit HUB system is esthetically and environmentally appropriate, the overall environment (traffic, pollution, parking congestion) of Garden City will be improved.

What's more important is the long term sustained economic viability of Garden City. There are two aspects to this-the value of residential housing and the attractiveness of commercial real estate and local merchants.

Recent changes in consumer behavior as a result of increasing gas prices have shown that residential property that is close to urban areas and mass transit are more desirable than those that require longer and more costly drives.3 This bodes will for the value of Garden City real estate, with its proximity to the Long Island Rail Road. The ability to easily move about the mid-Nassau County area including access to the LIRR will only help to increase the value and competitive positioning of Garden City real estate when compared to other communities. Quick access to the Mineola Railroad Station is a major advantage to Garden City commuters as the trains are significantly faster (approximately 12 minutes from Penn Station to Garden City) and far more frequent.

A robust local transportation system will also help other residents, including teen-agers and senior citizens-groups may choose to use a public transit system instead of private automobiles. How many more teen-agers need to die or be injured in alcohol- and non-alcohol related automobile accidents when safe public transit is available?

Commercial real estate, including the many office buildings along Franklin Avenue, are already suffering from inadequate parking as well as overcrowded roads. Convenient access to other parts of Nassau County as well as connections to the LIRR for commuters from New York City and further east will make all of the commercial real estate more attractive to potential tenants (read: employers) serving to maintain the buildings' rent rolls as well as the related spending for business supplies and employees' other purchases in local stores.

Local stores will also benefit from increased access by customers who choose to take mass transit rather than drive and face traffic and parking shortages.

It is time for the village to recognize that the 1950s era of automobile-based suburban communities is no longer economically or environmentally viable. In fact, given its existing population density and commercial activity, Garden City already looks and feels very much like an urban environment. Neither of these facts can be changed or reversed.

The Hub transit system can be aesthetically pleasing with appropriate design including landscaping and attractive stations. There are many models for such attractive systems include Stuttgart and Berlin Germany as well as Bordeaux, France. The European cities are especially good examples as these are countries with standards of living comparable to those in the U.S. but significantly lower per capita energy use in part as a result of greater user of mass transit.

Rather than hiring a consultant to represent the village's position on the topic, these funds would be better spent understanding the economic impact of inaction or, worse, blocking necessary progress. The analysis should address the economic value of residential and commercial real estate, commercial and retail business activity-all of which can be financially modeled. Various logical scenarios should be identified and explored.

Resident Honored By

The Epilepsy Foundation

The Epilepsy Foundation of Long Island recently held its Annual Dinner Dance, "HOORAY for HOLLYWOOD" at Carlyle on the Green at Bethpage State Park. Family, friends and people with epilepsy joined together to help raise money to support the community education efforts of the Epilepsy Foundation. The proceeds also help support the Foundation's residential homes, day programs, and clinic services. Through education comes understanding and one of the missions of the Foundation is to educate the public about epilepsy to help reduce the stigma and misconceptions that still surround this disorder.

William A. Lockwood, a 35 year resident of Garden City was honored at the annual Dinner Dance with the 2008 Corporate Leadership Award. Bill is the Senior Managing Director of Empire Valuation Consultants, one of the nation's leading and most respected independent business valuation consulting firms. Bill has over 40 years experience in the valuation and management of business interests and has been involved in more than 7,000 valuations of companies in a broad array of industries. Both he and his wife, Constance "Connie" have friends that have been personally touched by epilepsy. They are active members of the Epilepsy Foundation of Long Island and strive to raise funds to enable the foundation to meet its mission.

The Dinner Dance is the Epilepsy Foundation's largest fundraising event. For information about the Epilepsy Foundation of Long Island call the Development Office at (516) 739-7733 ext. 140.

Arlene Chianese