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2012-268 2012-268 Resolution Authorizing the Settlement of the Tax Certiorari Proceeding Regarding Progressive Casualty Insurance Company At a regular meeting of the Town Board of the Town of Wappinger, Dutchess County, New York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on October 9,2012. The meeting was called to order by Barbara Gutzler, Supervisor, and upon roll being called, the following were present: PRESENT: Supervisor Councilmembers Barbara Gutzler William H. Beale Vincent F. Bettina Ismay Czarniecki (arrived at 7:39 PM) Michael Kuzmicz ABSENT: The following Resolution was introduced by Councilman Beale and seconded by Councilman Kuzmicz. WHEREAS, there is now pending in the Dutchess County Supreme Court tax certiorari proceeding commenced in 2007,2008,2009,2010, 2011and 2012 by Progressive Casualty Insurance Company, regarding Grid No. 6157-04-674155, seeking a reduction in the 2007 through 2012 tax assessment for those respective tax rolls; and WHEREAS, the Town Assessor and Special Counsel have recommend a settlement of this tax review proceeding; NOW, THEREFORE BE IT RESOLVED, that the Town Board of the Town of Wappinger hereby approves a settlement on behalf of the Town of Wappinger of the tax review proceeding for the years 2007 through 2012, as it pertains to Grid No.: 6157-04-674155, as follows: Tax Year Original Total Revised Total Reduction Assessment Assessment 2007/08 2,000,000 1,450,000 550,000 2008/09 2,000,000 1,450,000 550,000 2009/10 2,000,000 1,344,000 656,000 2010/11 2,000,000 1,240,620 759,380 2011/12 2,000,000 1,215,808 784,192 2012/13 2,000,000 900,000 1,100,000 : and BE IT FURTHER RESOLVED, that the Town Supervisor, Town Assessor and Gellert & Klein, P.e. Special Counsel to the Town of Wappinger are hereby authorized to take all action necessary and appropriate to effectuate the terms of this resolution. The foregoing was put to a vote which resulted as follows: BARBARA GUTZLER, SUPERVISOR WILLIAM H. BEALE, COUNCILMAN VINCENT F. BETTINA, COUNCILMAN ISMA Y CZARNIECKI, COUNCILWOMAN MICHAEL KUZMICZ, COUNCILMAN Voting: Voting: Voting: Voting: Voting: AYE AYE AYE AYE AYE Dated: Wappingers Falls, New York 10/9/2012 The Resolution is hereby duly declared adopted. (Yuu~/~~ CHRISTINE FULTON, TOWN CLERK Leonard Klein Arthur L. Gellert John A Geoghegan Scott L Volkman David R.. Wise' Roderick J Macleod Kelly l. Traver" Keith G.lngber Robert E. Noe John J Evans Pamela B. Richardson& Elizabeth M. Corrado Gellert & Klein, P.c. Attorneys at Law 75 Washington Street. Poughkeepsie, NY 12601 (845) 454-3250 (845) 454-4652 fax Counsel Stephen E. Ehlers S. Nina Gellert Raina E. MaisselO Justice George D. Marlow Appellate Division (Ret.) Senator Stephen M Sa land Robert C. Vincent, Jr Lillian S. Weigert Joseph H, Gellert (1907-1989) Westchester County Office 301 0 Westchester Avenue Suite 302 Purchase, NY 10577 (914) 249-0100 (914) 249-0111 fax vvww.gkiaw.us October 2, 2012 *Also lIdmitted in CT &Also Admitted ,n N.I ~AlsoAdrnitted 'n E~gland T own Board Town of Wappinger 20 Middlebush Road Wappingers Falls, NY 12590 Re: Progressive Casualty Inc. vs. Town of Wappinger Our File No. 27036.3529 Dear Supervisor Gutzler and Town Board Members: Enclosed is a Resolution seeking authorization of settlement ofthe above-referenced tax certiorari proceeding involving vacant land located at 1162 Route 9. These proceedings date back to 2007. The property sold in 2006 for $1,450,000. The property has been assessed for $2,000,000. After a substantial review and discussion, the Assessor and I have agreed to a settlement based upon the sale price in 2006 for 2007 and 2008. We then trend that down as set forth in the resolution through 2011 with a final reduction in 2012 to $900,000, which is the cunent asking price for the property, which is, and has been, listed for sale. The Assessor will provide a refund analysis for your consideration. We jointly seek your favorable consideration to the attached Resolution. Very truly yours, SL V Ibr Ene. cc: Christian Harkins, Assessor fRi ~(G~aw~[Q) OCT 03 2012 TOWN OF WAPPINGER T9VY.~~~ERK ~~~~~~~[Q) TOWN OF WAPPINGER OCT 03 2012 TOWN OF WAPPINGER TOWN CLERK TOWN BOARD RESOLUTION RE: RESOLUTION AUTHORIZING THE SETTLEMENT OF THE TAX CERTIORARI PROCEEDING REGARDING PROGRESSIVE CASUALTY INSURANCE COMPANY WHEREAS, there is now pending in the Dutchess County Supreme Court tax certiorari proceeding commenced in 2007,2008,2009,2010,2011 and 2012 by Progressive Casualty Insurance Company, regarding Grid No. 6157-04-674155, seeking a reduction in the 2007 through 2012 tax assessment for those respective tax rolls; and WHEREAS, the Town Assessor and Special Counsel have recommend a settlement of this tax review proceeding; now, therefore be it RESOLVED, that the Town Board of the Tovvn of Wappinger hereby approves a settlement on behalf of the Town of Wappinger of the tax review proceeding for the years 2007 through 2012, as it pertains to Grid No.: 6157-04-674155, as follows; Tax Year Original Total Revised Total Reduction Assessment Assessment 2007/08 2,000,000 1,450,000 550,000 2008/09 2,000,000 1,450,000 550,000 2009/1 0 2,000,000 1,344,000 656,000 2010/11 2,000,000 1,240,620 759,380 2011/12 2,000,000 1,215,808 784,192 2012/13 2,000,000 900,000 1,100,000 :and be it further RESOLVED, that the Town Supervisor, Town Assessor and Gellert & Klein, P.C. Special Counsel to the Town of Wappinger are hereby authorized to take all action necessary and appropriate to effectuate the terms of this resolution. Leonard Klein /'.rthur L Gellert John A Geoghegan Scott L Volkman David R. Wise Roderick J. t/iacLeod Kelly L Traver' Keith G. Ingber Robert E. I~oe John J Evans Pamela S. Richardson" Elizabeth M. Con'ado Gellert & Klein, P.c. Attorneys at Law 75 Washington Street. Poughkeepsie, NY 12601 (845) 454-3250 (845) 454-4652 fax Counsel Stephen E. Ehlers S. Nina Gellert Raina E. Maisselo Justice George D. Marlow Appellate DiVision (Ret.) Senator Stephen M. Saland Robert C. Vincent, Jr. Lillian S. Weigert Josepn H. Gellert (1907.1989) Westchester County Office 3010 Westchester Avenue Suite 302 Purchase, NY 10577 (914) 249-0100 (914) 249-0111 fax www.gklaw.us October 2,2012 ATTORNEY/CLIENT CONFIDENTIAL COMMUNICATION NOT FOR PUBLIC DISCLOSURE .Also Admitted in CT ';'Also Admitted in NJ Q Also Adrnirted In England fR1~~~~W~[Q) Town Board Town of Wappinger 20 Middlebush Road Wappingers Falls, NY 12590 OCT 03 2012 TOWN OF WAPPINGER TOWN CLERK Re: Progressive Casualty Inc. vs. Town of Wappinger Our File No. 27036.3529 Dear Supervisor Gutzler and Town Board Members: You have a letter and a Resolution requesting authorization to settle the above-referenced matter. The property was sold at an "arm's-length" sale in 2006 for $1,450,000. The assessment for 2007 and for each subsequent year has been $2,000,000. An "arm's-length" sale is generally defined by the Office of Real Property Tax Services as "a real estate transaction in an open market freely arrived at by normal negotiations without undo pressure on either the buyer or the seller." Ifproperty is considered to be an "arm's-length" sale, based upon a number of factors, including an RP-5217, which is filed with each sale, that figure can be used to establish value. In fact the Court's have determined that an arm's-length sale is the best indicator of value. There are certain sales such as short sales and foreclosure sales, which are not considered to be arm' s- length and therefore, generally do not support the establishment of any particular value. But in this case, the vacant land did sell at an arms length sale in 2006, which is the valuation date for 2007 assessment. The Courts consistently confer valuation status upon that sales price at a minimum for one year. Following that, the Assessor can apply typical market conditions to update the valuation, but there has been a steady decline in values since the sale took place in 2006. The petitioner has agreed to maintain the sale price is the value for 2007 and 2008, and we trended the values down for 2009,2010 and 2011. The 2012 assessment is based upon the continued decline in the real estate market as well as, the fact that the property is and has been listed for sale for quite sometime and the current asking price is $900,000. Gellert & Klein, P.c. Attorneys at Law Although we have not had the benefit of an apprisal, for this matter, however there is another vacant parcel 4.6 acres, which is slightly larger than this property, which was the subject of a recent settlement, which is a benchmark for value here. Taking that into account with the asking real estate market, we believe that settlement in this nature is satisfactory. Very truly yours, SL V Ibr Enc. cc: Christian Harkins, Assessor