Hempstead Town IDA Wins Appellate Court Case Against Comptroller

A New York State appellate court panel has overturned a Nassau State Supreme Court Justice’s ruling that the Nassau County Comptroller has the authority to audit the Town of Hempstead Industrial Development Agency (TOHIDA).

In a unanimous decision handed down July 10, a four-judge panel of the State Supreme Court Second Department’s Appellate Division overturned a 2017 ruling by Justice Jeffery Brown, who ordered the IDA to turn over documents to then-Nassau County Comptroller George Maragos relating to the IDA’s 2015 approval of PILOTs that were granted to the owners of Green Acres Mall in Valley Stream.

The appellate panel ruled that the county comptroller has no authority to examine the IDA, because it, like every other IDA, is chartered by the state. The “TOHIDA is not a ‘town,’ ‘special district,’ or a ‘political subdivision’ of Nassau County,” the appellate judges said in their decision.

“We’re very pleased by the decision," said Frederick A. Parola, CEO of the TOHIDA. "The lower court’s decision was totally incorrect in terms of established precedents and the appeals court made the right decision."

In 2016, Maragos sought the documents relating to the IDA’s approval of the Green Acres PILOTs and sued to have IDA officials comply with his subpoenas. Residents' school taxes had dramatically increased, and officials were trying to find out why. The majority of the board of the TOHIDA stepped down in the wake of the accusations that the PILOT agreement led to the increased taxes. Later, State Comptroller Tom DiNapoli audited both the TOHIDA and Valley Stream School District 30.

“This case is about transparency and making sure IDAs are held accountable when investing taxpayer dollars," said Robert Busweiler, spokesman for the Comptroller's office. "Our office plans on appealing this decision so that we can continue our oversight of special districts and protect taxpayer dollars.”