Westhampton Beach School District sues Southampton Town over tax plan for Quiogue development
Westhampton Beach schools on March 7. Credit: Michael A. Rupolo Sr.
The Westhampton Beach School District has sued the Town of Southampton and the developer of an affordable housing complex in Quiogue over a tax plan for the property.
The lawsuit alleges the developer's proposed PILOT — or payment in lieu of taxes agreement — fails to capture the full cost of educating more students as a result of the project. The agreement also does not follow the New York State Housing Finance Law, the lawsuit alleged. The district filed the lawsuit April 18 in Suffolk state Supreme Court.
Developer The NRP Group has plans to build The Preserve at South Country Road on Montauk Highway and South Country Road in Quiogue. The 79-unit complex will encompass 23 acres of land, with six dedicated for open space.
Westhampton Beach School District Superintendent Carolyn Probst, in a letter to the school community, said the district "is challenging only the PILOT and not the proposed housing development," adding, "it is unlikely the approved PILOT for the Preserve at South Country will provide the District with adequate revenue to support student and staff needs."
Nica Strunk, an attorney for the district, asked the court in the filing to stop the PILOT from taking effect “because it was affected by an error of law, was arbitrary and capricious and an abuse of discretion.”
James Burke, the Southampton Town attorney, said in an email that town officials “are open to further meetings with the School Superintendent and any other representatives of the District to discuss and review their concerns.”
At its Dec. 19 meeting, the Southampton Town Board approved a PILOT agreement requiring the developer to pay about $74,900 annually instead of property taxes for a period of 30 years and eight months. The payment is to increase 2% annually, according to town documents.
Jonathan Gertman, senior vice president of development at The NRP Group, said in a statement on Thursday: "This project represents a meaningful step toward addressing Southampton’s affordable housing crisis."
He continued: "It has received broad support after years of public review and will pay its full share of taxes under the proposed PILOT."
The agreement will cause the district to “suffer harm, in that the cost of educating the new students from this affordable housing project will greatly exceed the tax revenue to the School District,” according to the district's filing.
The Westhampton Beach School District serves about 1,670 students and spends $24,265 per "general education" pupil annually, and $74,128 on each student enrolled in special education services, according to the lawsuit.
Southampton officials projected in environmental review documents an increase of 24 more students as a result of the development. School officials said the total “will be significantly greater,” according to the suit.
“The cost of an influx of 24 or more children to the School District would greatly exceed the additional tax revenue generated by the PILOT agreement that the Town Board has authorized the Supervisor to sign,” Strunk wrote.
The agreement, according to the lawsuit, also shouldn’t be executed because “Preserve at South Country Housing Development Fund Corporation, Inc.” hasn’t properly registered with the New York secretary of state and is therefore not eligible for a property tax exemption. The town's PILOT resolution lists Preserve at South Country Housing Development Fund Corporation, Inc., and South Country Road Apartments, LLC, as parties in the agreement.
Burke, the town attorney, said the PILOT “has not yet been signed by the parties and only would take effect if and when the nonprofit was in place and the record owner of the subject property.”
'Just disappointing and ... sad' The proportion of drivers who refused to take a test after being pulled over by trained officers doubled over five years. NewsdayTV's Virginia Huie reports.
'Just disappointing and ... sad' The proportion of drivers who refused to take a test after being pulled over by trained officers doubled over five years. NewsdayTV's Virginia Huie reports.
