Politics

Town Supervisor wants IDA board removed over Green Acres Mall deal

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This story was updated on Oct. 27 at 1:18 p.m.

Hempstead Town Supervisor Anthony Santino today announced that he would seek to remove the town’s Industrial Development Agency board over its handling of the Green Acres Mall PILOT agreement.

“I have demanded transparency and public outreach from my town administration,” Santino said. “Even though the local IDA is an independent agency, I will accept nothing less from them.”

Santino said he would advise the Hempstead Town Board at its Nov. 15 meeting to make a motion to remove the IDA board. The meeting is set for 10 a.m. at 1 Washington St. in Hempstead.

After making that brief statement to the media, Santino swiftly left the room without answering questions.

Fred Parola, the IDA executive director, had no comment when called by the Herald.

The move came a day after residents packed an IDA board meeting to decry a drastic tax break given to the Green Acres Mall, which shrunk its tax payments by $6 million this year, and froze that rate for 10 to 15 years as part of a payment in lieu of taxes agreement. On average, tax bills increased between $322 and $758 in school districts 13, 24 and 30 this month, drawing fury from unsuspecting residents in the area.

Two years ago, Santa Monica, Calif.-based Macerich Company applied and received a PILOT agreement with the IDA as part of the mall’s expansion project. For the duration of the payment plan, the mall will come off the county’s tax rolls, beginning this month. At the 10-year mark, the IDA will determine whether the mall has added 670 employees, which would make it eligible for an additional five years.

Santino and Councilman Bruce Blakeman announced last week that a lawsuit would be brought against the IDA to nullify the PILOT agreement and reopen public hearings on the matter.

IDAs are governmental agencies that work with business owners or developers to provide financial incentives to enhance local economies. IDAs typically obtain properties in need of development and then lease them back to their owners via PILOTs. Parola told the Herald last month that this particular PILOT was issued to the mall to prevent it from going “belly up.”

Correction: An earlier version of this story incorrectly stated the Town Board's next meeting is Nov. 12. It is Nov. 15.