A tax challenge deal between the owners of the Palisades Center and the town of Clarkstown will reimburse the megamall $27.5 million on property taxes paid to the town, the Clarkstown school district and Rockland County.
The town board also O.K.’d a multimillion-dollar tax settlement with the Shops of Nanuet.
In both settlement deals, the respective school districts ‒ Clarkstown schools for the Palisades Center and Nanuet school district for the Shops at Nanuet ‒ pay the largest refund.
- Clarkstown school district will reimburse about $18 million, or more than 65% of the settlement, to Eklecco, the Palisades Center mall’s owner; the town is paying back about $7.8 million and Rockland County around $1.7 million.
- Nanuet school officials did not provide a cost estimate for the multi-year tax settlement with the Shops at Nanuet, known as 1000-912 Fashion Drive. A town official said it would cost the school district around $2 million. The Clarkstown resolution estimated a cost of about $828,000 for the town. A cost for the county was not immediately available.
The Nanuet school board voted for the deal Monday night.
The Clarkstown school board voted on the settlement with the Palisades Center on Tuesday night.
The district had already set aside funds to offset such settlements, so the district does not need to issue a bond for extra borrowing, Clarkstown schools Superintendent Marc Baiocco said Wednesday in a statement. “We are confident this matter was settled in the best interest of our tax-paying residents.”
Supervisor George Hoehmann said Tuesday that the settlement prevents future tax challenges by the mall for the next three years. “It maintains the mall’s value at a much higher rate than the owners had sought.”
Settlements set Palisades Center value for 3 years
The Palisades Center and the town have been in court for several years over the mall’s tax challenges covering multiple years.
The Palisades Center had put its own market value at $160 million while the town’s most recent value for the mall was set at $392 million. Under the settlement, the tax assessment is now based on a value of $300 million. That will stay for at least three years, according to the settlement.
Lawyers for the town and the school districts recommended the settlements, according to the town resolutions.
Both were approved Tuesday morning by the town board with a 4-0 vote at a special meeting. The board then voted to bond up to $8.7 million to cover tax settlement costs.
Among the largest malls in the nation, the Palisades Center has long been a major property taxpayer for the county, town and local school district. It’s also long challenged its tax assessments.
Even before the mall’s grand opening in 1998, the owners had filed a tax assessment challenge.
Foreclosure attempt continues
Meanwhile, mortgage lenders, including Wilmington Trust, have gone to court to demand foreclosure action against EklecCo and the other Pyramid Cos. affiliates that own the Palisades Center.
The court filing, in state Supreme Court in Manhattan, asks for the mall to be sold off, right down to the fixtures, with the lenders getting the proceeds to pay off its overdue mortgage, interest and court costs.
Tuesday’s property tax settlement could influence the foreclosure case, but it’s unclear to what extent. The mall’s agreement to the tax settlement puts the value of the mall higher than what the mall had asserted in court papers as it attempts to stave off foreclosure.
The mall is overdue on repaying a $418.5 million mortgage it took out in 2016.
Mall troubles:Creditors come after Palisades Center in court, seek foreclosure. What’s at stake
The parties are concurrently working on a settlement, court records show.
Meanwhile, Wilmington Trust has sought a temporary receiver.
The borrowers, EklecCo NewCo LLC, Queens Comic’s NewCo LLC, Riesling Associates, and Three J’s Family Trust, are due to respond with their own plan July 16.
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