Compromise Reached on Chappaqua Crossing Property Tax Assessments

On Tuesday, May 12, 2015, the Town Board authorized the settlement of a series of tax certiorari proceedings involving the former Reader’s Digest property, now known as Chappaqua Crossing, that spanned several years.

The settlement roughly halves the amount Summit Greenfield had been seeking in property tax assessment refunds.

The settlement, which was reached with the assistance of the Court, is a compromise, said Town Supervisor Rob Greenstein.

“The litigation had presented the risk of significant financial liability to both Town and School District taxpayers,” he said in a written statement. “As in any litigation, there is uncertainty as to the eventual outcome. But this is especially true in a tax certiorari case because the outcome rests upon the court’s evaluation of competing opinions offered by the parties’ appraisers. Here, the Town faced the possibility of having to refund over $600,000 in taxes to Summit Greenfield, and the School District faced a possible liability in excess of $2 million.”

Greenstein said that as part of the settlement the town will provide a refund to Summit Greenfield in the amount of $326,405.55.

In return, Summit Greenfield agreed to forego any challenge of its real property tax assessment in 2015, 2016 and 2017, provided that the assessment of its property does not exceed $7,234,500—a value of $35 million using the 2014 equalization rate.

Summit Greenfield spokesman Geoff Thompson said the company was pleased to have the litigation resolved.

“It’s good for the town, it’s good for the school district to not have the tax cert hanging over them,” he said. “It’s time to move forward.”

The Chappaqua Crossing development is almost through its decade-long approval process, as the New Castle Planning Board considers final site plan approval.

“In the event that Summit Greenfield commences construction work at the site in the upcoming years, as is expected, the Town will be able to reassess the property based upon the value of those improvements,” Greenfield said.

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