Government

By Linda M. Toga, Esq.

Linda Toga Esq.

THE FACTS: Many of my friends have told me that I should transfer my house to my son and retain a life estate.  

THE QUESTIONS: What are the pros and cons of doing that?

THE ANSWER: People often transfer their property to their children and create life estates because they believe it is the best way to increase their chances of being Medicaid eligible or to avoid probate. In most cases, there are better ways to achieve those goals. 

Before the Medicaid look-back period was changed to five years for all nonexempt transfers, life estates were a very popular part of Medicaid planning. However, since the look-back period is now the same whether you transfer a residence and retain a life estate or put the residence in an irrevocable trust, there is no advantage to creating a life estate when it comes to the look-back period. 

The downside of a life estate from a Medicaid planning perspective is the fact that, if the house is sold during your life time, you are entitled to a portion of the proceeds from the sale. The percentage of the proceeds allocated to you would be governed by life expectancy tables and is surprisingly large. 

For example, if you, as the life tenant, are 80 years old when your $300,000 house is sold, you will be entitled to approximately $130,000 of the proceeds. In the context of a Medicaid application, that $130,000 will be deemed an available resource and may result in a denial of benefits. This is true even if you created the life estate more than five years before you apply for Medicaid. 

If, on the other hand, you transferred the house into an irrevocable trust, even if the house was sold, the proceeds would be fully protected in the trust after the five year look-back period. 

With respect to avoiding probate, if you transfer your house to your son during your lifetime and create a life estate, the house will not be subject to probate when you die, the value of the house will not be included in your gross taxable estate (although the value of the transferred share may be subject to federal gift tax) and you will continue to enjoy any real estate tax exemptions that were applicable to the property before you deeded the house to your son. 

However, if the house is in your son’s name, his creditors can attach liens or judgments to the property. If you create a life estate, you will be required to file a gift tax return reporting the gift of the property to the IRS. 

Finally, by creating a life estate you may be subjecting your son to a capital gains tax liability. That is because your son will not get the step up in basis when you gift him the house that he would get if he inherited your house after your death. 

For example, if you paid $150,000 for the house 20 years ago, your son’s basis in the house if you gifted it to him would be $150,000. If he sells the house after you die, he will have to pay capital gains tax on the increased value of the house. 

If, on the other hand, he inherits the house after your death, he will get a step up and his basis in the house will be the date of death value. Unless he holds on to the house for an extended period of time, it is unlikely that your son will have any capital gains tax liability. 

If your goal in creating a life estate is to avoid probate, a better alternative to a life estate is a revocable trust. Although transferring your house into a revocable trust does not provide protection from estate taxes, it does avoid the need for filing a gift tax return, it protects the house from your son’s creditors and it will allow your son to get a step up in basis when he inherits the house after your death. 

There are clearly many issues to consider when deciding whether a life estate, revocable trust or irrevocable trust offers the best solution for you. The cost of each option is also a consideration. Since creating a life estate can have far-reaching consequences, it is important to discuss your goals and your options with an experienced attorney before taking action. 

Linda M. Toga, Esq. provides personalized service and peace of mind to her clients in the areas of estate planning, real estate, marital agreements and litigation. Visit her website at www.lmtogalaw.com or call 631-444-5605 to schedule a free consultation.

File photo by Erika Karp

Homeless people living in Suffolk County might soon find a roof over their heads in Port Jefferson Station.

New York Gov. Andrew Cuomo (D) announced May 10 that $25.6 million has been awarded to four housing developments on Long Island to create 239 affordable homes.

There is $8.1 million set aside for construction of six two-story buildings on vacant land off Route 112 in Port Jefferson Station, north of East Grove Street and south of Washington Avenue. Phase One of the project would create 77 units, while a potential second phase would add an additional 31 apartments, according to Brookhaven Councilwoman Valerie Cartright (D-Port Jefferson Station) speaking during a May 22 Port Jefferson Station/Terryville Civic Association meeting. The site plan application for the project was listed as
“in-review” in Brookhaven documents as of April 30, though the property is already properly zoned for the requested use and it doesn’t require any variances, according to town spokesperson Kevin Molloy. The Port Jeff Station project would include 45 units for homeless individuals, half of which would be reserved for veterans, Cartright said.

“Our biggest concern, besides the tax part that they’re not bringing any kind of revenue to our community, is also the amount of kids that may come out of this facility.”

— Sal Pitti

The May 10 announcement ignited a strong reaction from the Port Jefferson Station community both on social media and at the May 22 meeting. Civic association President Sal Pitti said he, Cartright and representatives from Concern for Independent Living Inc., the nonprofit agency seeking to construct the facility, met in March to discuss the potential project, concerns of the community and the agency’s efforts to gain tax exempt status for the project from the state. Cartright and Brookhaven Supervisor Ed Romaine (R) both said May 22 they were caught off guard by the governor’s announcement about the funding.

“As soon as I found out anything about it, I ran into the supervisor’s office asking him what he knew about it and wanted to make sure that I had all the information necessary,” Cartright said. “Immediately afterwards we contacted the civic association … it was news to us as well.”

Pitti said he thought the organization had been less than forthcoming about its plans, suggesting Concern for Independent Living initially didn’t mention the potential second phase, which is also not referenced in Cuomo’s announcement.

“Our biggest concern, besides the tax part that they’re not bringing any kind of revenue to our community, is also the amount of kids that may come out of this facility, because more kids in our school district means more taxes on top of the taxes we’re already paying for that location,” he said.

Elizabeth Lunde, Senior Associate Executive Director for Concern for Independent Living said leadership of the civic association had been invited to visit one of the organizations other facilities, and the invitation remains on the table.

“Concern for Independent Living is a local organization that has been providing quality housing in Suffolk County for decades,” she said in an email. “We were founded in 1972 and our first office was located in Port Jefferson Station. We currently operate over 1,000 units of affordable rental housing that has made a very positive impact in Suffolk and Nassau Counties as well as Brooklyn and the Bronx.”

Several attendees of the May 22 civic meeting expressed displeasure about the project, suggesting Port Jeff Station already has its fair share of facilities for homeless people.

“Homeless families need a place to live — our community is a very giving community.”

— Edward Garboski

“Homeless families need a place to live — our community is a very giving community,” civic association Vice President Edward Garboski said May 22. A resident at the meeting responded, summing up a sentiment seemingly shared by most of the attendees: “We don’t want to be the only community giving.”

The Port Jefferson project is receiving only a small part of more than $200 million the state is awarding to build or preserve more than 2,800 affordable apartments across New York, according to a press
release from Cuomo’s office. The governor called the $200 million investment a “giant step forward to increase access to homes for families, seniors and our most vulnerable men and women across the state.”

RuthAnne Visnauskas, commissioner of New York State Homes and Community Renewal program, said the investment would address the crisis of homelessness among other benefits.

“By delivering affordable homes to Long Island, we continue to grow its economy,” she said in a statement.

Romaine said the town is concerned about the governor’s announcement and suggested other ways he thought the money could be better used. He also instructed concerned residents to start a petition and direct it to Cuomo’s office.

“We’ve been begging the state of New York to give us some money to fix up zombie homes, and to make them available to first time home buyers and veterans,” he said. “We’d like that money going toward that housing, instead of building something new, how about we rebuild some of the neighborhoods that we lost during the Great Recession to foreclosures and zombie houses. How about giving homes to our veterans and first-time home buyers who are leaving the area.”

Your neighbors as citizen educators and advocates

By Lisa Scott

The League of Women Voters of Suffolk County (LWVSC) has been writing a monthly column in this paper for the past 10 months. We thank Leah Dunaief for giving us this opportunity to share our insights and information with TBR readers (in print and online) and look forward to continuing this league “outreach” to our fellow Suffolk County residents each month. We chose the title “Making Democracy Work” very deliberately, since “Work” refers to both a functioning democracy as well as alluding to the “roll up your sleeve” efforts of the league and all of you as responsible citizens in Suffolk.

LWVSC has no actual members — our local leagues in Brookhaven, the Hamptons, Huntington, Shelter Island and Smithtown are the member organizations. The board meets monthly as we exchange best practices and insights, address challenges and plan joint league activities and visibility, as well as observe and study county government and issues and construct responses on a county level. 

We share, we learn, we argue, we support and we inspire greater league visibility and effectiveness. The league is very much a grassroots organization in which our local community/town leagues are vibrant and active on local issues and study and share state and town issues and insights in order to reach consensus to further action.

The league’s passion and mission focus on voter education (in many forms) as well as advocacy on issues that we’ve studied on all government levels. Our overarching philosophy is being nonpartisan: We never support or oppose candidates or parties. We’re collaborative and have a strong commitment to civil discourse and civic engagement.

We recently held our 50th annual convention, which reflected the activities and events Suffolk local leagues held in the past 12 months. We’d like to share some of these with you in order to celebrate the scope and depth of what the league (your neighbors here in Suffolk County) is able to accomplish.

•We held over 100 voter registration drives and distributed voter registration forms at cooperating retail locations, events, fairs and naturalization ceremonies.

•We sponsored or moderated over 20 candidate debates for school boards and for town and county government offices.

•We work closely with the Suffolk County Board of Elections to better understand election processes and rules, advocate for increased voting accessibility (e.g., early voting, no excuse absentee ballots, etc.) and recently met for an overview of poll worker training. 

•There are numerous strong league youth programs that include a selective Students Inside Albany three-day conference; an annual Student Day at the Suffolk County Legislature; a Running and Winning program for girls; working with Girl Scouts on government and woman suffrage badge requirements; presenting a Vote 18 program for high school seniors; and encouraging schools to contact the Board of Elections for education on the voting machine process (using a sample “ice cream ballot”). We developed and publicized public service audio spots for local colleges and communities to remind people about election day and hours and we worked with youth-led political action groups to create Youth Engaging Youth programs to promote civic engagement.

•We hold lots of public information meetings on a wide range of civic topics ranging from elected officials speaking on topics of concern (e.g., Assembly member/committee chair Steve Englebright on offshore drilling and water issues) to an informational meeting on end-of-life choices and decisions. We invite officials such as town justices or town trustees to explain and discuss their roles; host debates on the NYS constitutional convention referendum; presented a panel on immigration on the south fork of Long Island and hold annual town supervisor meetings to discuss challenges and plans.

•There are celebrations, outings and learning opportunities as well: celebrating the LWVUS’ 98th birthday (we were founded by leaders of the woman suffrage movement in 1920); commemorating NYS woman suffrage in 1918 with multiple events, programs and speakers; holding Community Conversation lunches to informally engage with local leaders; organizing tours of less-known communities and sites in our own areas and co-sponsoring films and reading books with panels and discussions.

The public knows the league for debates, voter registration drives and observing at and speaking before local and county government. We’re particularly proud of our annual Directory of Public Officials and the election/voter information available from our website and phones. Learn more about us, help us further achieve our mission to educate and advocate in Suffolk County, join us and support us. Make Democracy Work!

Lisa Scott is president of the League of Women Voters of Suffolk County, a nonprofit, nonpartisan organization that encourages the informed and active participation of citizens in government and influences public policy through education and advocacy. For more information, visit www.lwv-suffolkcounty.org, email [email protected] or call 631-862-6860.

Suffolk County Executive Steve Bellone. File photo by Alex Petroski

In his annual State of the County address, Suffolk County Executive Steve Bellone (D) touted recent initiatives while also keeping an eye on both the near and distant future. The executive spoke for more than an hour from the auditorium stage at Newfield High School in Selden in front of a crowd of county, town and village lawmakers, students and others.

“I can tell you that the state of Suffolk County — this amazing place that we all call home — is strong,” Bellone said. “I remain committed to making Suffolk County a model for effective and efficient government, a government that is as good as the people it is there to represent.  We can build a stronger economic future, we can protect our water quality, we can transform this government, and we can do big things in Suffolk County and on Long Island if we do them together.”

Though he admitted the state of the county government, “remains a work in progress,” Bellone called on both political parties to look past the issues that divide them and remember the things that unite Americans. He honored the four Suffolk County native airmen of the 106th Rescue Wing, based out of Westhampton, who died as a result of a helicopter crash while carrying out a mission in Iraq in March, including Commack resident Master Sgt. Christopher Raguso and Port Jefferson Station resident Staff Sgt. Dashan Briggs.

“These are the individuals that make our country great,” Bellone said.

The executive spent a large chunk of his speech on public safety and the work of the Suffolk County Police Department, specifically a decreasing rate of opioid related overdoses and violent crime and reported that last year 222 arrests were made in connection with the violent gang MS-13.

While discussing public safety, Bellone detailed the recently implemented SHARE initiative. The program — Sharing to Help Access Remote Entry — allows participating school districts to connect closed circuit security camera systems directly to SCPD, who can access surveillance footage in real time in the event of active shooter situations on school campuses.

He gave a nod to the students locally and across the country organizing marches and walkouts to protest for stricter gun control laws in the wake of more high-casualty school shooting incidents around the U.S.

“It has been inspiring to see young people speak out on issues, organize rallies, run for school board and demand more of their elected officials,” he said. “Your voices will be heard.”

The county executive made numerous references to the state of government and politics in Washington D.C., specifically in making a pledge that he and his colleagues “will not rest” until the State and Local Tax deduction, which was repealed as part of the federal tax overhaul bill passed in 2017, were restored. The elimination of the deduction stands to cost residents in high-property tax areas — like Suffolk County — thousands of dollars more than previous years.

Bellone stressed the importance of economic development through downtown revitalization projects — like upper Port Jefferson’s “Uptown Funk” plan — and streamlining public transportation around these hubs as a means to foster an environment in which young people can afford to live in Suffolk County going forward through the creation of quality jobs.

“We spend a lot of money educating our kids here,” the county executive said. “Too many of them have left for other parts of the country, where they are helping to power their regional economies. We have to stop that.”

Bellone called water quality a critical issue for all Suffolk County residents. The county has made funding available for septic system improvements for homeowners, which would help reduce the amount of nitrogen polluting Long Island’s waterways. He also recently implemented a recycling program for six county school districts.

An artistic rendering of the proposed Elwood Orchard. Graphic from Villadom Corp

By Sara-Megan Walsh

Town of Huntington officials announced Thursday afternoon that Villadom Corp. has officially withdrawn its application for the proposed Elwood Orchard.

Huntington town officials received a May 17 letter from, Syndicated Ventures, LLC, the applicant for the proposed Villadom development project, indicating that it was withdrawing its request for a change of zoning application from R-40 to C-5 and C-6 in order to construct a more than 480,000 square-foot commercial development on Jericho Turnpike, according to town spokeswoman Lauren Lembo.

Lembo said as the developer has completely withdrawn the application the May 17 hearing is officially cancelled.

The announcement came a few hours after Huntington Councilman Ed Smythe (R) put out a statement challenging the legality of Huntington Supervisor Chad Lupinacci’s (R) decision to adjourn the May 17 hearing on Villadom Corp’s proposed mixed-use commercial development Elwood Orchard to be constructed on Jericho Turnpike. Smythe said the hearing’s adjournment would require a vote by the town board.

“The Villadom public hearing is going forward today as scheduled unless the applicant withdraws it, gets a court-ordered stay, or finds three council members to vote to adjourn it,” he said in a statement.

At approximately 2:30 p.m. May 16, Lembo sent out an urgent notice that the May 17 hearing was being adjourned after the applicant for the proposed Villadom development project, sent correspondence to the town at 1:10 p.m. indicating an interest in amending their application.

“In light of the new information received by the Town, the May 17 public hearings on the Villadom project must be adjourned,” Lupinacci said. “The hearings may only be rescheduled to a later date at the discretion of the Town Board.”

Lembo said the that the town attorney was consulted regarding the legality of dismissing the public hearing before the announcement was made.

Mark Smith, a spokesman for Villadom said that based on many discussions with civic representatives as well as modifications that were suggested by the town’s planning board, the developer sat down with interested community members and decided the best course of action at this time was amend the application.

“It is our hope that through continued communication and community outreach we will come together to put forward a proposal for Elwood Orchard that will greatly benefit the community and the local economy,” Smith said.

Smith would not immediately share details on who or what groups Villadom Corp. met with that have led to this change.

Members of the Stop the Villadom Facebook group were discussing plans to continue their planned rally against the Elwood Orchard project at Elwood Middle School, even after the announcement was made the hearing would be adjourned.

 

Creating an estate plan can give you the peace of mind you need. Stock photo

By Nancy Burner, ESQ.

Nancy Burner, Esq.

Planning for the future can sometimes be difficult. Creating an estate plan can give you the peace of mind you need, while also making it easier for your loved ones to handle your affairs when you die. We often find that while our clients understand the basics of certain estate planning documents, they are often surprised to see that many of these documents are multifaceted and serve multiple purposes.

A last will and testament is a legal document memorializing your wishes on how you, the testator or creator of the will, want your estate to be distributed after you die. If you die without a will, your assets will be distributed according to state statute, also known as the laws of intestacy.  

For example, in New York State, if you die with a surviving spouse and children, your spouse will receive the first $50,000 of your estate and then one-half of the balance. The remainder will be distributed equally among your children. This is not ideal for someone who wants all their assets to go to their surviving spouse.   

Instead of being bound by the laws of intestacy, one can create a will that specifies to whom they want their assets to go and how they want their assets to be distributed. Under the scenario above, a will would allow the testator to distribute their assets to their surviving spouse. Only if the spouse predeceases the testator should the assets be distributed to their children.

The will has functions other than just listing the distribution of assets upon death. For parents with young children, a will allows a guardian to be named for minor children. Also, if there are beneficiaries that are minors or incapacitated, the will can provide that the assets be distributed in trusts on behalf of those beneficiaries. 

Many clients will choose to leave assets to beneficiaries in trusts in other circumstances, such as for creditor protection or to delay the age by which they can have full access to the funds. 

A will can also create a supplemental needs trust for beneficiaries who currently receive, or may be in need of, means-tested government benefits.  

Another advantage of executing a will is that it allows the creator to waive any bond that the executor would otherwise have to pay in order to administer the estate. A bond is often required by the court to protect the interests of the distributees and beneficiaries of one’s estate.  

Depending on the size of the estate, the bond may have a large annual premium that will be paid out of the assets of the estate. A will can also provide for the decedent’s wishes regarding funeral arrangements and cremation.

It is important to have a will even for individuals who hold all accounts jointly with another person. While the joint assets will go directly to the co-owner, the terms of the will can be used to administer any assets that are held outside of the joint accounts. An estate account will have to be opened to cash any checks delivered after death that are made payable to the decedent, including tax refunds or a return of other funds. Having a will ensures that these funds are distributed to the appropriate persons.  

Creating a last will and testament can help avoid many of the pitfalls that occur when a person dies without any estate plan in place. We strongly recommend seeking a trust and estates and elder law professional to help determine the right estate plan for you.

Nancy Burner, Esq. practices elder law and estate planning from her East Setauket office.

Rob Gitto of The Gitto Group, representative from the Long Island Rail Road Ryan Attard, grant writer Nicole Christian, Tony Gitto of The Gitto Group, Leg. Kara Hahn, Suffolk County Executive Steve Bellone, village Mayor Margot Garant, village Trustee Larry LaPointe, Trustee Bruce Miller, and Brookhaven Councilwoman Valerie Cartright during a groundbreaking for an upper Port Jefferson revitalization project May 9. Photo by Kyle Barr

After years of planning upper Port’s redevelopment to deal with blighted buildings, traffic and a lack of parking space, Port Jefferson Village officials are finally ready to say, “Don’t believe me, just watch.”

As part of the village’s revitalization efforts — a project dubbed “Uptown Funk” — village, Suffolk County and Brookhaven Town officials held a groundbreaking ceremony May 9 for a new parking lot in the space at the corner of Texaco Avenue and Linden Place. The lot should allow for another 74 parking spaces, largely for Long Island Rail Road commuters using the Port Jefferson train station.

“The village is thrilled to partner with the county, Empire State Development and the Long Island Rail Road on improvements in upper Port to enhance pedestrian connectivity and safety, revitalize blighted commercial properties, and promote safe living and economic growth,” Mayor Margot Garant said.

The revitalization of upper Port is part of the Connect LI project of Suffolk County Executive Steve Bellone (D). The plan behind the initiative is to use both existing and new public transportation options to connect people to commercial centers and main streets as in Port Jefferson.

“This is a model of what we need to be doing around the region,” Bellone said. “My administration is committed to providing funding to assist our towns and villages with these revitalization projects. The project we broke ground on today is a major step in continuing our efforts to make Suffolk County a great place to live, work and raise a family.”

Phase one of the project will cost $850,000 to be funded by grants from the county’s Jumpstart program and other financial contributions. Along with the parking lot the first phase of the project will improve sidewalks that lead to the train station from The Hills at Port Jefferson apartment complex.

Phase two of the project will include a renovation of the north, east and south LIRR parking lots with new pavement, lighting and plaza entryway.

Phase three will create “Station Street,” a new one-way road that will provide access to the new renovated parking lots. Garant said the road should also reduce congestion on Main Street and allow for smoother access into the train station parking lots.

Part of the hope for the project is that students coming from Stony Brook University and other commuters will help create interest in the area, which in turn should incentivize businesses to invest in upper Port and remedy the blighted property seen on Main Street, according to Garant.

“We want feet on the street,” Garant said.

Last year Nicole Christian, a consultant at law firm HB Solutions and grant writer for the village, helped apply for several grants for the Uptown Funk project. Last year Port Jefferson Village was awarded $250,000 in Jumpstart money to start plans on the project and the village also applied for a grant from the Empire State Development Corporation, a state entity, for $500,000.

“Empire State Development is excited to support this roadway realignment that will foster this transit-oriented development and revitalize this community to create a true linkage from upper Port Jefferson to the waterfront,” Howard Zemsky, ESD president, said in an email.

Part of the purpose of the new parking lot is also to help facilitate foot traffic from The Hills at Port Jefferson to the train station across the street. “All of the apartments in two separate buildings, which were completed in 2016, have already been rented out and there is already a long wait list to get in,” said Tony Gitto of The Gitto Group, the real estate development company behind development of the apartment complex, during the event.

The Town of Brookhaven and Port Jefferson Village worked with Gitto and his company to create the two-building complex. To incentivize the creation of the apartment complex, Brookhaven Industrial Development Agency, an arm of municipalities dedicated to funding projects to stimulate job creation and economic growth, gave Gitto and his company sales tax exemptions on construction items, a mortgage tax exemption and a 10-year property tax abatement.

Gitto said that they provided money toward the funding of the new parking lot.

“They hired the contractors and we made a financial contribution,” Gitto said.

This post was updated May 15.

Smithtown school district's administrative Joseph M. Barton building on New York Avenue. Photo by Kyle Barr

By Kyle Barr

Smithtown might finally be coming together, literally. Town officials are getting appraisals of town-owned property as a first step toward consolidating town departments under one roof.

“We need to consolidate, no doubt about it,” Supervisor Ed Wehrheim (R) said. “Though how we do it depends on how much it’s going to cost the taxpayer. We’re going to look for the most economical way to do it.”

At a May 8 meeting, Smithtown’s Town board unanimously approved retaining the services of Mineola-based Michael Haberman Associates Inc. to perform appraisals of four town-owned and operated buildings. The cost of the appraisals is not to exceed $10,000, and Wehrheim said it will be a few months before the town has results.

I don’t see [ the New York Avenue building] as a plausibility at this moment in time.”

– Tom Lohmann

The properties to be evaluated to determine their real estate value are: 40 Maple Ave. in Smithtown, where the town comptroller and assessor offices are; 124 Main St. in Smithtown, currently home to the engineering department and department of environment and waterways; 23 Redwood Lane, which houses the building department and its neighbor, 25 Redwood Lane, which contains both the planning and community development department.

Wehrheim said that the properties chosen for appraisal are already costing the town money for annual maintenance.

“Those structures are pretty old buildings,” he said. “They require a lot of maintenance in terms of heating, air conditioning, … etcetera. We’re gonna save that much money right off the bat for the taxpayer.”

Councilman Tom Lohmann (R) said that one of the big perks that will come with consolidation will be residents will no longer have to travel a good distance to meet with several different town departments.

We need to consolidate, no doubt about it.”

— Ed Wehrheim

“The other part is one stop shopping,” Lohmann said. “You got to go down to the town clerk, you got to go to the town attorney, the tax receiver’s office, you have the tax assessment, it wouldn’t be a big difficulty. If you have all those entities here you’re not running around all over the place.”

Some town-owned properties are not included in the appraisal because they are simply too large to be included or moving their base of operations would be too costly.

“The highway department’s got big operations, the parks department’s got a big set of operations, waste services is large, those we can’t consolidate,” Lohmann said. “Public safety you won’t because there is too much money invested just with the telecommunications systems.”

There are currently two options for consolidating, according to Wehrheim. The supervisor said the town is looking again at potentially purchasing the Smithtown school district’s administrative offices, the Joseph M. Barton Building on New York Avenue, for moving town hall. The second option is for the town to build an extension onto Town Hall itself.

The highway department’s got big operations, the parks department’s got a big set of operations, waste services is large, those we can’t consolidate.”

— Tom Lohmann

Smithtown United Civic Association, led by President Tim Smalls, presented a proposed plan for downtown revitalization that pushed for Smithtown town government offices being consolidated into the New York Avenue building.

Lohmann said that he believes the school-owned building is not feasible because of its need for extensive renovations.

You’re talking about over $2 million to do cleanup and an abatement there, then a redesign,” he said. “I don’t see that as a plausibility at this moment in time.”

David Flynn, the town’s planning director, said consolidation is not as big a deal for his department in the age of computers and easy telecommunication.

“Of course, it will make some difference, but in the current world where people use phones and computers for communication it means less than it would of 20 years ago,” he said. “Would it be more convenient to meet with somebody, sure.”

Whether or not Flynn and his department moves is all going to come down to comparing the costs of keeping the buildings or consolidating them.

“It all depends on running out the costs for both scenarios, how much the cost is for heat, light, water and other kinds of maintenance,” he said. “I think you estimate it either way and see what the costs are.”

Developer to get financial assistance from Brookhaven Industrial Development Agency

The location of the future senior residential community The Vistas of Port Jefferson off North Bicycle Path in Port Jefferson Station. Photo by Alex Petroski

What is currently an open field on North Bicycle Path in Port Jefferson Station will soon be home for some.

A new 244-unit residential rental complex for senior citizens proposed

27 acres of vacant land on the west side of North Bicycle Path, north of Comsewogue High School, has been greenlit. The Brookhaven Town Industrial Development Agency announced in an April 26 press release it had approved an application for economic incentives with Benjamin Development Co., operating as The Vistas of Port Jefferson LLC, which will also be the name of the new community. The IDA is tasked with selecting projects that “promote the economic welfare and prosperity of the Town of Brookhaven by assisting in the acquisition, construction, reconstruction, and equipping of commercial and industrial facilities.”

As part of the financial assistance agreement between the agency and developer, The Vistas of Port Jefferson will make payments in lieu of property taxes for 13 years, starting with a $52,000 installment in year one, jumping to about $90,000 in year four, and concluding with a $1,516,043 payment in the final year of the agreement. In total, the company will pay about $8 million in lieu of higher town property taxes during the 13-year agreement. The total cost of the project is expected to be about $65 million.

The area boxed in red represents the location of the future senior residential community The Vistas of Port Jefferson off North Bicycle Path in Port Jefferson Station. Image from Google Maps

Lisa Mulligan, chief executive officer of the IDA, declined to comment on the agreement in a phone interview beyond what the agency offered in a press release, though she said the ball is in the court of attorneys on both sides to officially close the deal, which she said she fully expects to take place.

A request for comment to Benjamin Development Co. was not returned.

“As a result of IDA assistance for the development of this project, hundreds of new construction jobs will be added to the region,” the company’s application to the IDA stated. “The project development will also benefit local/regional firms through purchases from suppliers, subcontractors, etc. Finally, the project will create new full-time jobs and 245-plus new residents that will assist in the stimulation of the local economy through daily household spending.”

The project is expected to create more than 400 new construction jobs as well as 24 new permanent positions, according to the IDA press release. The Vistas of Port Jefferson will offer 64 two-bedroom townhouses, 36 one-bedroom units, 144 two-bedroom apartments with a clubhouse and a sewage-pumping facility. Construction is expected to take about two years. The facility is billed as a community for tenants age 55 and up. Fifteen percent of the units will be designated as affordable housing, available to prospective tenants earning less than 80 percent of the area’s median income, which was about $90,000 per household from 2012 to 2016, according to the United States Census Bureau.

Brookhaven Councilwoman Valerie Cartright (D-Port Jefferson Station) said in an emailed statement through Legislative Secretary Carolyn Fellrath the town IDA is a separate entity from the board and does not seek input from councilmembers in making decisions.

“This proposed project has generated concern in the community,” Cartright said. “The re-zoning of this parcel in 2010 pre-dates my tenure. However, based on the community concerns raised to my office, I am not sure the decision to re-zone this parcel to Planned Retirement Community would be granted if this application were before this town board today.”

Dr. Jason Kronberg during a meet the candidates event at Port Jefferson High School April 24. Photo by Alex Petroski

A Port Jefferson School District board of education candidate has agreed to pay a settlement to resolve a legal issue pertaining to his day job.

A pediatrics practice with several Long Island locations, including one in Port Jefferson, and its current and former partner physicians agreed to pay $750,000 to settle claims of improper Medicaid billing practices, according to an April 25 announcement by the United States Attorney’s Office for the Eastern District of New York. One of the partners of Pediatrics and Adolescent Medicine, the practice named in the press release, is Dr. Jason Kronberg, a Port Jefferson resident running for one of the school district’s three board of education seats up for election May 15. The practice operates as a limited liability partnership under the name Freed, Kleinberg, Nussbaum, Festa & Kronberg M.D. The legal action was brought about by a whistleblower, and the case was pursued under the federal False Claims Act and the New York State False Claims Act jointly by federal and state investigators.

“The practice corrected the problem on our own in 2011, and we have had no issues since that point.”

— Jason Kronberg

According to the release, the practice billed the Medicaid program, which provides health coverage to millions of Americans including eligible low-income adults, children, people with disabilities and others and is jointly funded by state and federal governments, for services provided by physicians who were not enrolled in the program. Between July 2004 and December 2010, the practice and its partners employed a number of physicians who were not enrolled in the Medicaid program yet still provided care to Medicaid patients, the government’s investigation revealed. The defendants sought reimbursement from Medicaid for services provided by non-Medicaid enrolled physicians and did so by misrepresenting the identities of the individuals actually providing the treatment, the release said.

“The settlement related to billing practices from over eight years ago, a period when, for the most part, I was just an employee of the practice,” Kronberg said in an email, adding that the settlement shouldn’t interfere with his school board candidacy. “The practice corrected the problem on our own in 2011, and we have had no issues since that point. Given the extraordinarily complex nature of Medicaid billing rules, settlements like this are quite common – the government enters into thousands of them every year. We cooperated fully with the government investigation of this matter and we resolved the case with the government amicably.”

According to the complaint by the whistleblower’s attorneys accessed after Kronberg’s initial statement, he was a partner “at all relevant times herein.”

“I was a partner starting July 2009,” Kronberg said. “The complaint was 2005 to 2010. The statement said ‘for the most part’ — which is accurate.”

A request for comment sent to Kronberg’s defense attorney Christopher Fenlon was not returned, nor was a request sent to district Superintendent Paul Casciano.

“Today’s settlement reflects this office’s commitment to safeguarding taxpayer programs like Medicaid by vigorously investigating allegations of fraud in False Claims Act cases.”

— Richard Donoghue

According to Jay Worona, deputy executive director and general counsel of the New York State School Board’s Association, an organization that provides support for school boards in the state, the settlement will have no impact on Kronberg’s bid for Port Jeff’s board. Worona said anyone qualified to vote is eligible to run for a board of education position in New York, with a felony conviction being the only disqualifier, adding that it will be up to the voters to decide.

“Providers serving Medicaid beneficiaries must be properly credentialed and thoroughly vetted to ensure that proper care is provided and to preserve the integrity of the Medicaid Program, which serves our neediest citizens,” U.S. Attorney Richard Donoghue said in a statement. “Today’s settlement reflects this office’s commitment to safeguarding taxpayer programs like Medicaid by vigorously investigating allegations of fraud in False Claims Act cases.”

As part of the settlement, New York’s Medicaid program will receive $450,000 of the $750,000 payment, according to New York Attorney General Eric Schneiderman’s office’s press release on the matter.

Kronberg said during a meet the candidates event at the high school April 24 he was seeking a seat on the board to lend his willingness to listen to all sides of a debate and weigh in impartially. He is one of six candidates running to fill three seats.

“I was asked to become a member of the school board to serve as a rational and non-biased voice in what has become a contentious environment,” he said in a personal statement. “I believe I will bring to the board a fiscally conservative yet socially liberal viewpoint.”

This post was updated May 1 with information from the complaint filed by the whistleblower and a second comment from Jason Kronberg.