Big tax settlements for Valley Stream properties

A big refund is due for property owner MA Valley Stream LLC, which owns two separate properties near Merrick Road. Also collecting a substantial refund is National Amusements, the owner of Sunrise Multiplex Cinemas.

The village is now processing six-figure refunds — a particularly large sum of money for certiorari settlements — for the owners after they won settlements to get the taxes reduced on their respective properties.

“[Property owners] can bring a suit against us and file that their taxes should be reduced,” said Village Clerk Vincent Ang. And in the case of both properties, the taxes were severely reduced with huge refunds — $130,000 for the pair of commercial properties near Merrick Road, and $600,000 for the cinemas.

The commercial properties, which are located at 100 E. Mineola Ave., previously included an industrial multi-story space known as Sid Harvey Industries. According to Ang, the previous industry tycoon used to repair boilers and work with oil burners there. Throughout the years, the area began showing signs of wear and tear with severe ground contamination, which was treated by the owners.

According to Village Assessor Stephanie Price, there was lots of clean-up involved to take care of the contamination, which weighted negatively on the properties’ value. Ang added that the property value can become depreciated due to ground damages.

During the tax certiorari process, property owners can challenge real estate tax assessments of their property. In the case of the old Sid Harvey property, the assessment on the properties had not changed in some time. When considering assessments of property value for commercial property, the village may consider how much it costs to build the property or the amount of income being generated. Initially, the village makes a determination about how much each property is worth, according to Village Attorney P. Michael McKenna.

“The determination by the village is an administrative decision,” McKenna said. “If the owner thinks the value is too high, they can get a petition to review the value in court. They can argue the value is lower that the village determined. And in some cases, the value is lower.”

The MA Valley Stream properties were included in one settlement under the same judgment, according to Price. As for Sunrise Cinemas at 750 W. Sunrise Highway, Price said there was also a court-ordered assessment reduction in 1999.

“The multiplex is in very bad shape,” McKenna said. “It was built like 30 years ago and does not make a lot of money as it used to.”

Built in 1979, the Multiplex is not new to the community by any means. And since 2003, National Amusements is been in certiorari proceedings. According to McKenna, it usually takes seven to eight years for these cases to work through the court to reach a settlement. Once the settlement is approved by the village board for a refund, a voucher is sent to the property owners.

Currently, the village recently received a voucher back from National Amusements, which the village will process in two payments — one for this fiscal year and one for the next year. The village is also processing both refunds for MA Valley Stream. According to Deputy Treasurer Michael Fox, the payments will come from the village’s general fund. “The village has a budget line to pay off tax certiorari settlements,” he said.

The village has budgeted $850,000 for tax refund payments this year.

Officials from National Amusements declined to comment on the matter. At press time, MA Valley Stream could not be reached for comment.