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Politics & Government

Petrone Attends Northport Board of Ed; Urges Residents to Mobilize Against LIPA Tax Grievance

Turnout was light at the Jan. 10 meeting as community members heard an update and got a chance to ask questions

“We’re not going to walk away from this school district.”

That’s what Town of Huntington Supervisor Frank Petrone vowed to Northport School Board members and concerned residents at the Jan. 10 public meeting to discuss the over the Northport power plant.

 As he did at the Jan. 6 , Petrone urged residents to join a grassroots movement and send a message to leaders in Albany. 

“Stop the LIPA Tax Hike” signs were handed out at the meeting and the public was urged to join a bus tour to Albany on Feb. 1 to lobby Governor Cuomo and state lawmakers.

The LIPA/National Grid lawsuit seeks to reduce its assessment on the Northport power plant by almost 90 percent. The plant currently pays about $70 million a year in taxes.  If the assessment was reduced by this amount, the average Northport-East Northport School District resident would see the school portion of his/her property tax bill rise by over 50 percent. All Huntington property owners would face a 10% increase in the Town portion of their tax bills.

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 John Gross, an attorney from the Northport district’s law firm Ingerman Smith, explained that the suit is contrary to promises made back in 1998 by Richard Kessel, then Chairperson of LIPA, when the Long Island Power Authority purchased the Long Island Lighting Company. “We have correspondence from Mr. Kessel stating that there would be no grievance unless the Town of Huntington singled out and raised the value of the (power plant) property. That has not happened.”  However, he did say that LIPA’s agreement with National Grid expires in 2013 which might open the door to a tax hike at a later date should the current grievance fail.  

Gross said that it’s typical in such cases for lawyers to “over-ask” for compensation, and that in his opinion, it would be “quite remarkable” if LIPA were to be awarded the full 90% that it’s seeking.  Since the agreement is between LIPA and the Town of Huntington, the Northport School District has no say in the matter.

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Tapping into reserve funds to offset the impact of a successful grievance is not an option. According to Gross, New York State law prohibits, and in some cases, imposes a misdemeanor for such misuse of reserve funds.

One member of the public asked about the amount of legal costs involved in fighting the grievance. Gross said that the Town is actively interviewing law firms with expertise in this matter, and that he couldn’t hazard a guess as to how much it would cost.

With regard to Governor Cuomo’s proposal for a tax cap, Gross said support has been indicated  in the both the New York State Senate and Assembly for a 2%-4% cap which underscores the need for strong opposition at the local level. He said there would be some exceptions, such as interest on bonds, and added that he would be surprised if the cap ended up being a simple 2%.

Northport resident Joseph Stewart asked if LIPA might be setting the stage for a possible upgrade of the plant to a greener alternative.  “National Grid has been trying to sell it (the power plant) and no one wants it,” he contended.  “It’s the last fossil fuel plant built on the East Coast.” Petrone conceded that was a possibility.

After the meeting, Stewart emphasized his opinion that LIPA is “looking for the money to go green, or go elsewhere.” He  noted the fairly low turnout at the meeting, and suggested that it might have been because the district didn’t announce that Petrone would be in attendance.

When asked at the end of the evening why the public wasn’t notified that members of the Town Board would be present, Board President Stephen Waldenburg said that he had extended the invitation to Petrone at a meeting on Thursday, Jan. 6 and that the Town Supervisor wasn’t sure until the last minute that he would be available.

Resident Fred Trudwig asked Petrone if it might be in the Town’s best interest to settle with LIPA. Petrone denied such an idea, saying, “It’s not in the Town’s best interest to have a school district impacted.” He asked the public not start thinking that way because it’s what “they” want.

Town Councilman Mark Cuthbertson stressed the need for a grass roots effort, adding that the Northport community had lived with the plant and any possible side effects for a number of years. In response to one resident’s health concerns, he explained that the plant is not coal-burning, and that no amount of solar panels or windmills would replace it if LIPA were to leave.

Councilwoman Susan Berland also remarked on the small turnout in the William Brosnan School’s auditorium, and noted that, while not everyone could go on the bus tour to Albany, everyone could put a sign on their lawn. “We’re all united in this fight.”

Anyone interested in the Feb. 1 bus trip to Albany can visit the Town of Huntington’s website or www.stoplipataxhike.com for sign-up information.

 

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