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Lawsuit

Port Jeff Superintendent Paul Casciano and board President Kathleen Brennan. File photos by Alex Petroski

By Alex Petroski & Sara-Megan Walsh

Port Jefferson and Northport-East Northport school districts, as well as the Town of Huntington, were dealt a blow in the legal battle against Long Island Power Authority in August. But, it doesn’t mean they are going down without a fight.

Port Jeff board of education voted unanimously — 6-0 with board President Kathleen Brennan absent — during a Sept. 24 special meeting to file an appeal of New York State Supreme Court Justice Elizabeth Emerson’s Aug. 16 ruling that LIPA “made no promises” to the Town of Huntington, Northport-East Northport and Port Jefferson school districts not to challenge the taxes levied on its power stations.

Huntington Town Attorney Nick Ciapetta said the municipality formally filed its appeal of Emerson’s decision the following day, Sept. 25.

The judge’s ruling dismissed the third-party lawsuits brought forth by Huntington and the two school districts which alleged LIPA broke a promise by seeking to reduce the power plant’s taxes by 90 percent. The resolution passed by Port Jeff school board authorized its legal counsel, Ingerman Smith, LLP, to file the appeal.

“We do think her decision was incorrect, and clearly we do recommend that the board consider filing a notice of appeal in this proceeding,” said attorney John Gross of Ingerman Smith, LLP, prior to Port Jeff’s Sept. 24 vote.
Northport-East Northport’s board trustees had previously voted to pursue an appeal at their Sept. 6 meeting.

Gross, who has been hired to represent both Northport and Port Jeff schools, said the districts

will have six months to perfect appeals. During this time, the districts’ legal team will prepare a record including all exhibits, witness depositions, and information gathered from the examination of about 60,000 pages of documents. He said a brief outlining the  legal arguments against Emerson’s decision will be crafted prior to submitting the appeal.
LIPA will be given several months to prepare a reply, according to Gross, prior to oral arguments before a four-judge panel in New York State Appellate Division of the Supreme Court. Further appeals are possible following that decision. Gross said the process could take more than a year.

Meanwhile, Huntington Town, Northport-East Northport school district, LIPA and National Grid have agreed to pursue non-binding mediation relating to the case, which begins Sept. 26. Gross said while Port Jeff is not a party to the mediation, it will be monitoring the outcome because the process could establish a pattern of resolution for its case. He also said the district can withdraw its appeal at any time, but once that occurs it cannot rejoin the process.

“Legal actions taken by the Town [of Brookhaven], [Port Jefferson] Village and school district to generate an equitable solution to the LIPA tax assessment challenges are intended to protect its residents and children against exorbitant property tax increases; especially in a very short interval of time,” Port Jeff school district said in a publicly released letter Sept. 12 prior to passing a resolution authorizing the appeal. “Please know, that the district fully understands that the decision about engaging legal counsel is one to be made with great care, as it always carries a financial implication while never guaranteeing a verdict in one’s favor.”

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We get it — if you read our newspapers or just about any other media that cover Long Island, you’ve heard enough over the past decade about the legal battles going on between several school districts and townships versus Long Island Power Authority.

If you feel like you’re on LIPA overload, we have some significant news — a major development occurred in the cases last week. A New York State Supreme Court judge determined that the 1997 Power Supply Agreement between National Grid, which owns the power plants, and LIPA, which transmits that electricity to customers, did not contain any language, or “promise,” that prevented the utility companies from seeking to have taxes they pay on the power stations reduced.

The good news is this decision may signal there’s a light at the end of the tunnel to this endlessly drawn-out court battle. We fear the positives may end there.

LIPA has said that its intention in filing these lawsuits is to be able to reduce energy bills for its customers, as it hopes to pay out less in property taxes. On its face, the company’s goal appears to a good thing for residents of Huntington and Brookhaven townships, who will likely see a reduction in their monthly electrical bills should LIPA be victorious, except for the residents in Northport and Port Jefferson, who will see a property tax increase. These odds seem an increasingly likely fact in recent weeks as courts have ruled twice  in LIPA’s favor.

However, these legal battles have been waged for nearly a decade, racking up what we can only imagine are substantial legal bills from lawyers hired to represent the municipalities and the school districts involved. Then adding in fees paid for a third-party mediator when sit-downs begin in September, we find ourselves asking, “At what cost?”

We hope to find out just how much taxpayers’ money has been spent on legal fees for the duration of the saga, so keep an eye out for that. And for what? The “Hail Mary” play that a court would determine the 1997 PSA had implied a legally binding promise that LIPA wouldn’t seek a reduction in its property taxes.

It was such a risky play for Brookhaven Town and Port Jefferson Village that those two municipalities have agreed to settle the cases out of court to avoid exposure to the risk of years of back pay should the issue actually end up in a trial loss for the two entities. Still, why did it take Brookhaven and Port Jeff until 2018 to finally reach a settlement while legal fees kept accruing?

All of this can also be looked at against the backdrop that New York Gov. Andrew Cuomo (D) has set a goal for 50 percent of the state’s energy to come from renewable sources by 2030. Who’s going to pay for the solar and wind producing plants necessary, for example, to get on track in reaching that goal? We don’t think we’re going out on a limb in speculating that at least some of that cost will fall on LIPA’s customers.

While we’d like to think we’re inching closer to a day when we no longer have to report on legal issues pertaining to LIPA, a positive resolution for all stakeholders is going to take significantly more work. In reality, it should have been resolved long ago.

Democratic challenger files immediate appeal, keeps eyes on November's general election

Michael Marcantonio speaks at his July 30 press conference. Photo by Kyle Barr

A judge has ordered Democratic challenger Michael Marcantonio’s name be removed from the ballot for the 12th Assembly District.

New York State Supreme Court Judge Richard Horowitz issued a decision Aug. 17 that Marcantonio, 31, does not meet the minimum residency requirements to run for state Assembly.

His campaign has already filed an appeal of the decision, a staff member of Suffolk County Board of Elections confirmed Aug. 20.

“We will be proceeding with an appeal not just for our campaign, but for young people across our state that would be disenfranchised if this decision was allowed to stand,” Marcantonio said in a statement. “Long Island is facing a loss of our young people as they obtain education and are forced to seek opportunities elsewhere. This decision would place further barriers between young people and their ability to serve our communities.”

“We will be proceeding with an appeal not just for our campaign, but for young people across our state that would be disenfranchised if this decision was allowed to stand.”

— Michael Marcantonio

In July, 12th District residents Ralph Notaristefano, Paul D’Alessio and Kathleen Barnhart filed a lawsuit contending Marcantonio did not meet New York’s residency requirements to run. Under state law, any candidate for state office must show he or she has resided within the state for a minimum of five years and in the assembly district for one year.

The judge ruled that because Marcantonio registered to vote in the 2012 presidential election in North Carolina, where he attended law school at Duke University from 2012 to 2015, he did not meet the five-year New York State residency requirement, according to a statement issued by Marcantonio’s campaign.
Marcantonio could not immediately be reached for further comment. His campaign did not immediately provide a copy of the judge’s decision upon request.

At a July 30 press conference at Cow Harbor Park in Northport, Marcantonio said he believes his right to run for office is protected under the U.S. Supreme Court decision Symm v. United States (1979), which he said allows for students’ right to vote without losing their residency.’

“Merely registering to vote as a student out of state is not enough to eviscerate your residency in this state as a New Yorker,” Marcantonio said July 30.

The Democratic challenger remained on North Carolina’s voter lists until he graduated with his legal degree in 2015. He changed his registration to New York for the 2016 presidential primary, and cast a ballot in the last Northport school board election.

Marcantonio had previously said if he lost the lawsuit, he feared it could bar young people from voting while attending out-of-state school and then coming back to run for office.

Incumbent state Assemblyman Andrew Raia (R-East Northport), whose seat Marcantonio was vying to grab, previously weighed in on the issue stating anyone who may want to run for office after attending school in another state should use absentee ballots.

Town of Huntington, Northport-East Northport and Port Jeff school districts lose third-party lawsuits

Port Jefferson Superintendent Paul Casciano and Northport-East Northport Superintendent Robert Banzer. The two districts had legal challenges shot down by a judge Aug. 16 pertaining to property tax assessment claims made by LIPA. File photos

By Sara-Megan Walsh & Alex Petroski

A New York State Supreme Court judge has ruled Long Island Power Authority “made no promises” to the Town of Huntington, Northport-East Northport school district and Port Jefferson School District not to challenge the taxes levied on its power stations.

Judge Elizabeth Emerson dismissed the lawsuits brought forth by the Town of Huntington and the two school districts Aug. 16 which alleged LIPA broke a promise by seeking to reduce the power plant’s taxes by 90 percent.

“The court’s decision affirms our customers’ right to pay reasonable taxes on the power plants,” LIPA said in a statement from spokesman Sid Nathan. “We remain committed to reaching a fair settlement for both the local communities and our 1.1 million customers to put an unsustainable situation back on a sustainable path.”

Port Jefferson Power Station. File photo by Alex Petroski

The judge’s ruling is a big victory for LIPA as it allows tax certiorari cases to continue to trial, rather than being dismissed, and could have a widespread impact across Long Island for other municipalities with similar disputes against the utility.

“Obviously, we disagree with this decision and plan to appeal,” Northport Superintendent Robert Banzer wrote in a letter to district residents. “Please understand that Justice Emerson’s decision is not the end of our fight in this case.”

Port Jeff school district also responded to the development.

“While this decision is not the outcome the district was hoping for, we vow to continue to explore our options as we work to protect our school district’s financial future and the needs of our community,” the district said in part in a statement. “The district will work to keep the community apprised of any updates on the matter.”

In her 24-page decision, Emerson denied any notion that chapter 21, section 16 of the 1997 Power Supply Agreement signed by LIPA when it took over Long Island Lighting Company — which has been referred to as the 1997 Promise – was intended to benefit the school districts by preventing LIPA from challenging the tax-assessed value of its power plants.

Rather, she found it was to ensure other parties, including LILCO and GENCO, which owned the plants at the time, could not start initiating tax claims during the takeover process.

She also dismisses all claims that town governments or school districts were intended third-party beneficiaries of the contract.

“The Power Supply Agreement is clear and unambiguous and that it does not bestow any enforceable third-party-beneficiary rights on the plaintiff,” Emerson wrote.

The judge pointed to the PSA saying it “does not expressly name” either the town or school districts as a third-party beneficiaries.

“She applied contract law, not third-party beneficiary law,” said John Gross, the attorney representing Northport-East Northport school district. “That’s what we think she the mistake on.”

Gross said New York State law allows entities, like the school districts, to be recognized as third-party beneficiaries based on third-party conversations, letters, and promises. The school districts have filed thousands of pages of documents with the courts, according to Gross, that include official correspondence and records of conversations former LIPA chairman Richard Kessel had with school administrators and Huntington Town officials allegedly promising not to challenge the tax assessment of its power plants.

The judge ruled these “extra-contractual promises” made largely by Kessel “were gratuitious promises for which there was no consideration.” As such, the former chairman’s words “did not contractually bind LIPA.”

Gross said the school’s status as a third-party beneficiary “was wrongly decided.”

This recent decision could have large and profound impact not only on Huntington, Northport-East Northport and Port Jeff schools, but for all other municipal government and school districts that are LIPA’s power plants.

On Page 18 of her decision, Emerson wrote not only did the PSA contract not protect the Town of Huntington, Northport or Port Jeff school district taxpayers but “other similar situated school districts and municipalities.”

“This result was to a very large extent expected by the village, and that’s why the mayor and the board of trustees very early, initiated and drove settlement discussions with LIPA to resolve the issue,” Port Jefferson Village Attorney Brian Egan said.

The village board of trustees and Mayor Margot Garant in April passed a resolution approving “settlement concepts,” and the two sides are exchanging details of terms, expected to reach conclusion “at any time,” Egan said.

“When we’re a taxing jurisdiction and we’re going to subject ourselves to the back taxes on a longshot, that is not what we do with taxpayer dollars,” Garant said. “We have an obligation to not gamble, so to speak.”

“Please understand that Justice Emerson’s decision is not the end of our fight in this case.”

— Robert Banzer

Huntington town attorney Nick Ciappetta said the town plans to file an appeal of the judge’s decision.

“We believe there’s only one logical and legal way to interpret that provision,” he said. “That provision was there for the benefit of the taxpayers of Huntington.”

The town, Northport and Port Jefferson school districts will have 30 days to file an appeal once the decision is officially entered into court records, according to Ciappetta. He estimated an appeal of the decision could take 18 to 24 months.

“The decision does not affect the pending tax certiorari case between the Town of Huntington and LIPA scheduled for trial in December, nor do we expect it will impact the parties’ willingness to proceed with mediation,” Banzer wrote to the community.

Gross confirmed that Northport school district is still looking forward to sitting down for the first mediation session with the Town of Huntington, LIPA, National Grid  and third-party neutral attorney Marty Scheinman slated for Sept. 26.

Officials in Brookhaven’s Town Attorney’s office could not be immediately reached for comment, though the town has also said it is nearing a settlement in its case. Egan speculated settlements for municipalities attempting to resolve cases out of court might be held up by mediation in Northport and Huntington Town’s case.

This post was updated Aug. 17 to include a statement from Port Jefferson School District, and to attribute LIPA’s statement to Sid Nathan.

A Stony Brook University student has alleged that a professor sexually harassed her. File photo

A 2018 Stony Brook University graduate has filed a lawsuit against a Stony Brook history professor claiming he verbally and sexually harassed her while giving preferential treatment to the male students over female students.

Erin Mosier, 24, filed a $3 million suit under Title IX of the Education Amendments of 1972 in Manhattan federal court Aug. 9 saying that Stony Brook associate professor Larry Frohman sexually harassed her and degraded her for her looks and gender, sometimes together during his office hours and other times in front of her peers during class.

Mosier enrolled at Stony Brook for the Fall 2015 semester desiring to become a teacher. She entered in the social studies education program in spring 2016 where Frohman was the sole undergraduate adviser, according to the court filings.

The lawsuit claims that during Mosier’s first semester at Stony Brook she took a class with Frohman and within weeks he started to privately and publicly make demeaning comments at Mosier based on her looks. The comments continued on into 2017 during her time in the social studies program. At one point during office hours Frohman told Mosier she “talks too much,” and that “all women should use their mouth for men’s pleasure.”

The lawsuit also alleges on another occasion April 2017 that after applying oil to her hands to calm herself, Frohman stated to her in front of her class, “What would calm me down is taking you through a ride on the beaver car wash with me,” alluding to a sexual act with Mosier.

Mosier’s legal representative, Brian Heller, an attorney from Manhattan-based Schwartz Perry & Heller LLP that focuses on employment harassment and discrimination law, said with this case he hopes more people will speak out about sexual harassment in education.

“These are the kind of painful experience that can destroy a young person’s confidence and impact them for the rest of their lives,” Heller said. “I hope that by coming forward [Mosier] is able to reclaim part of her self-worth and her confidence.”

The suit further claims Frohman gave preferential treatment to male students, giving higher grades to male students on average rather than female students. The lawsuit also claims the professor partnered women together on projects and not men as a sign of Frohman’s belief in their capabilities.

Frohman has not responded to requests for comment by press time.

The lawsuit continues that Mosier brought her complaints to Paul Gootenberg, the history department chair of the social studies program, but that he first asked Mosier “What is your appearance and how are you acting to be treated like this?” and that he further commented about how she was not the first to bring complaints to him about Frohman.

Gootenberg declined to comment saying the university does not comment on pending personnel questions.

The suit claims Mosier’s Title IX complaints were mishandled by the university, that the investigation took six months instead of a promised 60 days to finish the investigation and that the office did not adequately give information as to the status of her complaint. On Oct. 30, 2017, Mosier received a letter from the Title IX office saying the case was “closed” and her complaints were “substantiated” but she did not receive any details on what actions the university would take against the professor.

Stony Brook spokeswoman Lauren Sheprow said that the university does not comment upon ongoing litigation.

“The university does have policies and procedures in place to fully investigate claims that are brought to our attention,” Sheprow said.

Heller said he is still waiting for Stony Brook to be formally served and initial hearings won’t begin until December.

The Northport power plant. File photo

Long Island Power Authority has won the latest battle against the Town of Huntington in the lengthy legal war over Northport Power Station’s value.

New York State Supreme Court’s Appellate Division has reinstated LIPA’s right to pursue a lawsuit against the Town of Huntington regarding the amount of taxes levied against the Northport power plant, reversing a September 2015 decision made by a lower court. A panel of judges ruled Aug. 8 LIPA does have legal standing to be a plaintiff in the 2010 lawsuit it filed jointly with National Grid.

“We believe the appellate court’s decision is correct.”

— Sid Nathan

“We believe the appellate court’s decision is correct,” LIPA spokesman Sid Nathan said. “We remain committed to reaching a fair settlement for both the local communities and our 1.1 million customers to put an unsustainable tax situation back on a sustainable path.”

In September 2015, state Supreme Court Justice John Bivona issued a decision dismissing LIPA’s standing as an initiating plaintiff in the tax certiorari case, since National Grid — and not LIPA — is the owner of the plant. Bivona had written that while LIPA believed its financial interests are adversely impacted by a wrongly overstated assessment of the power plant, “the result is still remote and consequential and certainly does not constitute a direct loss because the property taxes levied upon the Northport Power Station are actually and directly paid by National Grid Generation LLC.”

LIPA filed an appeal of Bivona’s decision in 2015. The utility has asserted while National Grid does own the power plant, the station is under contract with LIPA. Under the contract, LIPA is required to pay all costs to run the power plant — including the $80 million in annual property taxes to the Town of Huntington — and provide necessary fuel, for which in return it receives all electricity generated for its customers.

The utility company claims that its costs to operate the Northport Power Station including the taxes on it exceed the total revenue, resulting in LIPA referring to it as a “significant burden to LIPA’s customers.”

We’re reviewing the order from the appellate division and we’re considering an appeal.”

— Nicholas Ciappetta

With LIPA’s legal status reinstated as a party of interest on the tax certiorari case, the issue of the property tax-assessed value of the power plant could proceed to trial.

However, Huntington Town Attorney Nicholas Ciappetta has said he plans to carefully review the appellate court’s decision.

“We believe this has been wrongly decisioned,” Ciappetta said in a statement. “We’re reviewing the order from the appellate division and we’re considering an appeal.”

This latest legal decision comes less than a month after Huntington voted July 17 to hire a neutral third-party mediator, Marty Scheinman, in an attempt to reach a resolution with LIPA, National Grid and Northport-East Northport school district. The town agreed to pay Scheinman $1,150 an hour in addition to covering all out-of-pocket expenses, such as transportation and a one-time administrative fee, the total bill will be split among all parties in the mediation. 

Mediation has not yet started, but the first session is slated for Sept. 26, according to Chiappetta.

Update: Additional information was added to further clarify that the town will be splitting the costs of the third-party mediator. 

From left, New York State Assemblyman Andrew Raia and Democratic challenger Michael Marcantonio. File photo, photo from Facebook

New York 12th Assembly District Democratic candidate is facing allegations that he has not lived in the state long enough to run for office.

District residents Ralph Notaristefano, Paul D’Alessio and Kathleen Barnhart filed a lawsuit July 25 in New York State Supreme Court contending Democratic challenger Michael Marcantonio does not meet New York’s residency requirements.

When you change your car registration and open up a new voting registration in another state and that state says you must be resident of that state to vote, that’s pretty clear cut for me.”

— Andrew Raia

Under state law, any candidate for state office must show he or she has resided within the state for a minimum of five years and in the assembly district for one year.

Current state Assemblyman Andrew Raia (R-East Northport) said the more contentious issue in the lawsuit is whether Marcantonio, 31, has been a resident for the mandatory five years.

Marcantonio attended law school at Duke University in Durham, North Carolina, where he registered to vote in the 2012 presidential election as an enrolled student from 2012 to 2015.

“When you change your car registration and open up a new voting registration in another state and that state says you must be resident of that state to vote, that’s pretty clear cut for me,” Raia said.

In a July 30 press conference at Cow Harbor Park in Northport, Marcantonio said he believes his right to run is protected under the U.S. Supreme Court decision Symm v. United States (1979), which he said allows for students right to vote without losing their residency.

“Merely registering to vote as a student out of state is not enough to eviscerate your residency in this state as a New Yorker,” he said.

Marcantonio remained on North Carolina’s voter lists until he graduated with his legal degree in 2015, He changed his registration to New York for the 2016 presidential primary, and cast a ballot in the last Northport school board election.

The Democratic candidate said if he loses the lawsuit, he fears it could bar young people from voting while attending out-of-state school and then coming back to run for office.

“What we’re seeing today is an assault on young people,” Marcantonio said. “If we lose this lawsuit every single New Yorker who goes out of state for school and [vote,] they would be barred from running for office for five years after they graduate school.”

Merely registering to vote as a student out of state is not enough to eviscerate your residency in this state as a New Yorker.”

— Michael Marcantonio

Raia said that if anyone wants to run for office after they attend school out of state that they should send absentee ballots. Marcantonio countered that filing absentee ballots is too difficult for young people because they have to get it notarized. One has to get a absentee ballot notarized in South Dakota and North Carolina, according to Vote.org.

Raia said Marcantonio does not primarily reside in Northport, but rather lives in a New York City apartment closer to where he works at the law firm Kirkland & Ellis. Marcantonio has taken an unpaid leave of absence from his job to campaign, saying his main residence is his Northport family home, Marcantonio said he keeps a city apartment to use when he’s too tired to travel after work.

Raia also argued that Marcantonio is not well connected to the district. Marcantonio had raised more than $100,000 by July, more than double Raia’s campaign, according to financial disclosures filed with the state Board of Elections. Yet, only approximately $1,500 of the Democrat’s war chest came from nonfamily members in the voting area. Marcantonio said he expects his campaign to acquire more local donations in the months before the election.

Judge Richard Horowitz of the New York State Supreme Court is presiding over the case. The date was postponed but both parties are now due in court Aug. 17.

Marcantonio said he expects to win the lawsuit. “Northport is a great place to grow up — it made me who I am today,” he said. “I want to spend the rest of my life here, raise kids and send them to the same great schools I went to.”

The Northport power plant. File photo

Huntington town elected officials refused to entertain a request to hire additional legal help in its lawsuit against Long Island PowerAuthority, despite calls from Northport residents for help.

Huntington Councilman Gene Cook (R) offered a resolution at the June 5 town board meeting to hire Manhattan-based law firm Boies Schiller & Flexner LLP as additional legal counsel in the town’s pending tax certiorari case with LIPA and National Grid over the Northport Power Station as the case heads to trial in July.

“I believe this is a very needed law firm to hire at this point,” Cook said. “For the money that this law firm would [cost], it’s a whole lot less than the hundreds of millions we stand to lose.”

For the money that this law firm would [cost], it’s a whole lot less than the hundreds of millions we stand to lose.”
– Gene Cook

A request to hear and vote on a measure was shot down by a 3-2 vote, by Supervisor Chad Lupinacci (R), Councilman Mark Cuthbertson (D) and Councilwoman Joan Cergol (D).

“There are hundreds of thousands — millions of dollars at stake now in this case,” Lupinacci said. “Huntington has been fighting hard on behalf of the taxpayers. We will continue to use all legal options at our [disposal] to make sure LIPA and National Grid honor their contractual promises.”

LIPA filed a tax certiorari lawsuit against the town assessor’s office in 2010 seeking a 90 percent reduction in the tax assessed valuation of its Northport Power Station, and seeking repayment of all taxes it claims to have overpaid since 2010 — currently amounting to more than $550 million and growing.

Cook said the Manhattan-based law firm is one of the top litigation firms in the nation, although admittedly not specialized in cases related to power plants.

“We are losing a huge opportunity and it will hurt everyone out there by not doing this,” he said.

Several prominent Northport residents had pleaded with the town officials to support Cook’s resolution Tuesday afternoon including Northport school board trustee David Stein, who spoke as a private resident in support of the measure.

The army of attorneys, lobbyists and PR titans that we are against now requires an outsized army of our own.”
– David Stein

“LIPA and National Grid have brought in a veritable army of lawyers, lobbyists and [public relations] attack dogs,” Stein said, painting an image of a David-versus-Goliath fight. “The army of attorneys, lobbyists and PR titans that we are against now requires an outsized army of our own. And so, I urge you to engage the services of the biggest, best, brightest and most well-known in all of these areas now.”

Under Cook’s proposed contract, attorneys from Boies Schiller & Flexner would have been paid an hourly rate of not more than $1,650 an hour to assist the town’s current legal representatives from Lewis & Greer P.C. in determining a strategy and arguments for the upcoming trial. These accumulated attorney fees could not be bonded under state law, according to the town supervisor, but would have required dipping into the town’s capital reserves.

“If spending $1,650 were a silver bullet that would achieve something here, I would do it,” Cuthbertson said. “The law firm Cook would like to hire has absolutely no experience in tax certiorari cases that involve power plants.”

Lupinacci said he was willing to consider looking into other prominent litigation law firms which might be able to serve the town at a lower cost.

“Sometimes when [law firms] look at a municipality, they believe they are looking at deep pockets,” the supervisor said. “We have to do some outside the box thinking and leave no stone unturned.”

If spending $1,650 were a silver bullet that would achieve something here, I would do it.”
– Mark Cuthbertson

Northport Village Deputy Mayor Thomas Kehoe and Northport resident Tammy Topel both urged the Huntington town officials to take more aggressive action in light of additional information that has become public — spoken widely about by Cook — calling the Northport Power Station a hub through which natural gas lines and fiber optic networks for internet pass through.

“I believe these are misguided attempts to incorporate other aspects into the valuation process that just aren’t there,” Cuthbertson said. “It’s a red herring and unfair to the public.”

Cook vehemently disagreed with his fellow councilman in open debate.

The town is moving forward by pursuing help from its state elected officials, according to the supervisor, including scheduling a meeting with New York Gov. Andrew Cuomo (D) to garner his support for a resolution to the case. Lupinacci said the town still remains open to negotiations.

“We are always speaking with the other side to see if there is some kind of resolution, but we are probably not going to achieve a resolution that is going to be beneficial to the taxpayers of Huntington and to our students,” Lupinacci said. “We are prepared to take this case to trial.”

Judge rules to adjourn June 11 trial date for LIPA versus Town of Huntington

The Northport power plant. File photo

Northport school officials are inviting all district residents to a community meeting May 30 to address the potential impact of its lawsuit against Long Island Power Authority.

Northport school district will host a “call to action” community forum Wednesday at 8 p.m. in the auditorium of Northport High School. Superintendent Robert Banzer will provide residents with a brief update on the status of the district’s lawsuit against LIPA, legislation and what steps it can take to make sure resident’s concerns are being heard. The high school is located at 154 Laurel Hill Road in Northport.

This is the second meeting the school district will hold this month to address concerns over the LIPA lawsuit. School officials held a May 1 meeting where attorney John Gross presented his argument on why the utility company should be forced to uphold a 1997 promise not to attempt to lower the taxes on the Northport power plant.

LIPA has filed a lawsuit that is currently pending against the Town of Huntington to lower the Northport Power Station’s assessed tax valuation by 90 percent along with a reimbursement of all overpaid taxes since 2010. The Town of Huntington and LIPA appeared in court May 29 after which the judge adjourned the previously scheduled June 11 trial date, according to town spokeswoman Lauren Lembo at 1:10 p.m. Tuesday.

No additional information was immediately available on why the June 11 court date was adjourned.

Councilman Eugene Cook calls for residents to launch letter-writing campaign to Huntington Town officials

The Northport power plant. File photo

Town of Huntington officials are moving toward making a power play against Long Island Power Authority and National Grid to take over control of the Northport power plant.

Councilman Gene Cook (R) has called for town residents to participate in a letter-writing campaign asking Huntington’s elected officials to consider utilizing eminent domain to take control of Northport power plant.

His proposal comes days after LIPA allegedly submitted documents to Suffolk County Supreme Court for its pending lawsuit against the town, in which it disputes the tax value of the plant, claiming the structure only has a fair market value of $193 million, according to Cook.

“Their estimate is so far out of wack on it, they are almost like giving us the plant,” the councilman said. “If they want to give it to us, I want to take it.”

Cook said he thinks the Northport facility is one of the biggest power plants in the Northeast, which will become more valuable with future improvements. He estimated the power station could produce $5 billion in revenue per year for the town if it took over operation of the facility. He suggested the name “Huntington Power Service Company.”

“We want to serve our residents, not be an authority over them like LIPA has done,” Cook said. “They have taken LI Power Authority as ‘we have authority over everyone.’” 

Their estimate is so far out of wack on it, they are almost like giving us the plant.”

— Eugene Cook

The councilman drafted a resolution he said he plans to present at the May 17 town board meeting for Huntington to hold a public hearing. If approved, a hearing will be held June 5 at 2 p.m. for residents to voice their thoughts and concerns on the acquisition of the plant from National Grid, which is the owner of the power station.

“The basis of this acquisition will be for the purpose of delivery to the public of electrical power in a safe and cost-efficient manner,” reads the draft resolution.

Under New York State law, the town must publish its findings and determinations on the proposed acquisition from the public hearing within 90 days. The Town of Huntington is due in court to face LIPA less than a week later June 11.

“We are looking at every facet of possibility here when looking at the LIPA situation because it’s a very serious situation,” Supervisor Chad Lupinacci (R) said. “Any possibility that comes up we will review with our attorney — we will review it with experts to see if it’s feasible.”

Even if the town initiated the process of obtaining the power plan via eminent domain, it would not resolve the town’s lawsuit with LIPA. In addition to seeking a 90 percent reduction of taxes on the power plant, LIPA is asking for the town to reimburse it for alleged overpayment of taxes each year since it filed the claim in 2010 — totaling more than $500 million.

“Let’s save the consulting and legal expenses of evaluating this idea, which would be fiscally disastrous to the town, its taxpayers and wouldn’t resolve the pending tax certiorari litigation,” LIPA spokesman Sid Nathan said in a statement.

Let’s save the consulting and legal expenses of evaluating this idea, which would be fiscally disastrous to the town, its taxpayers and wouldn’t resolve the pending tax certiorari litigation.”

– Sid Nathan

LIPA disputes that the Town of Huntington could turn a profit operating the station, claiming Northport power plant is operated at a loss. The power company said its contract with National Grid requires it to pay all costs to run the plant — including $80 million in annual property taxes leveraged by the Town of Huntington — which exceeds its revenue. LIPA also stressed that if Huntington took control of the plant, all beneficial tax revenue would cease, leaving residents to pay more for their government services.

“We hope the town will join with other local communities on Long Island that are working with LIPA to reach a fair settlement offer that puts an unsustainable property tax situation at the Northport plant back on a sustainable path,” Nathan said.

The Town of Brookhaven and Village of Port Jefferson both announced they had reached settlements over the tax assessed value of the Port Jeff plant with LIPA in early April.

If the lawsuit is decided in LIPA’s favor, the utility company estimates that Town of Huntington residents would see their taxes increase by $62 a month, with Northport-East Northport school district residents responsible for an additional $210 to $220 per month.

Lupinacci has said the town remains open to bargaining with LIPA, while Cook said the only negotiation he is for is LIPA agreeing to withdraw its lawsuit.

“I will fight to the death on this one,” Cook said. “Either they want to be good neighbors or they don’t. If they don’t, they can hit the road.”

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