Tax PILOT Program Crashes in Bloomingdale

The following is a Letter to the Editor submitted by Bloomingdale Mayor Jonathan Dunleavy. If you would like to submit a Letter to the Editor, send it to ariana.cohn-sheehan@patch.com

I am deeply sorry to report that the majority of the Republican council, including Linda Shortman, Jo-Ann Pituch and Mark Conklin, have voted to defeat an agreement which would have brought in $550,000 in tax ratables per year (6 tax points) in connection with the AvalonBay project. 

Notwithstanding this opportunity, which would have guaranteed no tax increase and set Bloomingdale on a path towards extinguishing its overburdened debt and borrowing expense, the council majority dismissed the proposal on Tuesday, September 25, 2012. 

History

The suggestion to negotiate a tax ratable agreement with AvalonBay was actually suggested by the Borough’s Auditor Dieter Lerch. Myself and Councilman Ray Yazdi proceeded to negotiate whereby the borough council expended over $10,000 in planning reports.

In addition, the agreement would have relieved the borough of any obligation for 30 years to provide municipal services in the form of sanitation and road maintenance to the AvalonBay project. The cost of waiving these services is estimated to be over $60,000 a year or over $2 million in savings to the borough.

Deliberations

There were eight hours of public discussions and presentations by Councilman Ray Yazdi, who serves as a Professional Financial Consultant for a Fortune 500 Company. Ray demonstrated to the council majority how this additional revenue would only be utilized for taxpayer relief and ultimately stabilization and reduction of municipal taxes. The council majority, after deferring the vote for two months and not asking one question of the analysis, defeated the proposal last evening.

Councilman Conklin, when asked why he would defeat such ordinance indicated on two occasions that he did not “have a vision for the borough” but was voting no for this proposal. 

Councilwoman Pituch, when presented with a plan for taxpayer relief, provided absolutely no explanation after voting no with respect to the proposal. She declined offers to meet with Ray Yazdi and I to review the financial benefits of this Agreement and she simply voted "no."

Councilwoman Shortman, on September 6, 2012, requested to meet with the Board of Education to insure that the entity that oversees the school budget would have no objection to this favorable borough tax ratable agreement. Linda Shortman, Ray Yazdi and I met with the board of education on September 13, 2012. The board endorsed the P.I.L.O.T. Agreement and the Municipal Auditor called it a “win-win for the borough.” 

I will continue to fight for taxpayer relief and ways to revitalize the borough. I vow to continue to pursue this proposal and change the politics of the majority and steer them from this irresponsible past, led by former Councilwoman Huntley. In response to her criticism to the borough’s plan to payoff its debt and significant expense to the taxpayers, I presented to the public evidence that over a six-year period, Ms. Huntley voted for over $12 million of long-term debt. 

Notwithstanding this information, myself, Ray Yazdi and John D’Amato will continue to seek ways and strive for the revival of this proposal so that we can, in fact, guarantee a tax decrease for the residents of this borough. 

Jonathan Dunleavy
Mayor, Borough of Bloomingdale