Valley Stream mayor wants state audit of PILOT deal

Valley Stream Mayor Ed Fare on Wednesday called for the New York State Comptroller to perform an audit of the Green Acres Mall tax breaks, specifically to investigate whether or not the associated tax increases for homeowners are in compliance with the state’s two percent tax cap law.

The Village of Valley Stream, Town of Hempstead and school district 24 have previously announced plans to sue the IDA over the deal, but Fare called the lawsuit “fluid,” on Wednesday, noting that it’s possible the State Comptroller could first find a solution.

“Say the comptroller, today, after receiving our letter, finds errors and mistakes and can correct them,” Fare said. “Then there’s really no need to use more taxpayers’ dollars on a lawsuit.”

He said that if no solution for taxpayer relief is found, the village “must proceed with the lawsuit.”

The drastic tax break, issued by the Town of Hempstead Industrial Development Agency in 2015, went into effect for the mall this year, reducing its tax payments by $6 million and by a similar amount each year until 2022 as part of a payment in lieu of taxes agreement, or PILOT. That helped explain why tax bills in school districts 13, 24 and 30 increased, on average, between $322 and $758 this month, drawing fury from unsuspecting residents. The IDA’s board members resigned over the controversy earlier this month, and a new board has since been appointed.

Fare echoed the sentiments of a recent study performed by a consulting firm at the request of the IDA, which claimed the tax increases were compounded by District 30’s “intentional” underestimate of PILOT revenue. Officials from District 30 and the Central High School District have denied this.

“He’s pointing the finger, as did the Camoin Report, and it’s unfortunate,” said Dr. Nicholas Stirling, superintendent of District 30, of the mayor.

In addition to calling for an audit, Fare sent letters to local lawmakers urging them to create legislation “requiring stricter oversight of IDA PILOTs.”

Representatives from the State Comptroller’s office could not immediately be reached for comment, but Fare said they were “very receptive.”