Saturday, November 8, 2025
Valley Stream schools have launched a fresh legal battle against Green Acres Mall, aiming to reverse a controversial extension of tax breaks for the properties.
In the new lawsuit, filed in August, the school districts argue that the extensions of payment in lieu of taxes, or PILOT, agreements approved by the Town of Hempstead Industrial Development Agency this spring are illegal because Green Acres Mall failed to meet the job creation commitments outlined in the original tax deals in 2014 and 2015.
The extension agreement is slated to save the California-based Macerich, the Sunrise Highway property owner, an additional $174.1 million over five years. Critics argue that the tax breaks siphon potential revenue away from the school districts, shifting the financial burden onto taxpayers who are left to cover the difference.
“Absent court intervention to reverse the actions taken by the IDA, the Valley Stream community will continue to subsidize the tax breaks granted to the mall without accountability for the economic development the tax breaks were intended to create,” attorney Christopher Shishko said in a statement.
The dispute hinges on Macerich’s failure to meet the employment thresholds outlined in previous PILOT agreements. The lawsuit claims that in 2023, Green Acres Mall reported 2,537 full-time-equivalent jobs, falling 237 positions short of the 2,774 jobs required under a 2015 agreement. Likewise, the accompanying shopping center reported 480 jobs, missing its target by 90 positions. As of press time, Macerich could not be reached for comment.
The IDA has filed a motion to dismiss the lawsuit, arguing that the school districts lack standing to challenge the PILOT extensions.
The school districts are hoping to leverage the legal power of a “recapture clause” in the 2015 PILOT agreements which mete out penalties if employment targets aren’t met.
These could involve repaying tax savings or adjusting annual PILOT payments to reflect the job shortfall. The school districts are pressing the court to enforce the clause, either by clawing back Green Acres’ tax benefits or raising Macerich’s PILOT payments for redistribution to the districts.
Under the recapture agreement, however, the IDA has the ultimate legal say-so to modify those job requirements under a "force majeure" clause. The agency cited the COVID-19 pandemic as a "force majeure" event, a historical flashpont outside the company's control that crippled its ability to meet its job requirements.
In a letter to the IDA earlier this year, Macerich pointed to economic challenges, including the closures of Kohl’s in 2019 and Sears in 2021, which cut 131 full-time jobs. The company also cited rising interest rates and construction costs.
Instead of reclaiming benefits, the agency justified easing the mall's job creation requirements, arguing that maintaining the agreement supports the mall’s stability and protects the local economy.
Despite pandemic-era setbacks, Macerich plans a $100 million redevelopment of Green Acres Mall, projecting it will generate 464 new full-time jobs.
In 2017, the IDA sought to revoke the PILOT agreements, citing Macerich’s failure to meet job creation targets. However, a Nassau County judge sided with the mall owner, intensifying disputes over the tax revenue the malls were expected to generate. The disagreements forced Valley Stream school districts into substantial budget adjustments.
The schools, which serve Valley Stream, Elmont, and Franklin Square, now face fresh financial recalculations tied to the recent PILOT extensions. The controversy has reignited debates about the fairness and transparency of such tax agreements, with school officials warning of revenue shortfalls that could strain budgets and shift the burden onto local taxpayers.
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