Schools

Tax Settlement with Pfizer, Nanuet Schools, Town of Orangetown within Reach

The settlement may limit what Pfizer can build and reduce the taxes it pays to Nanuet and Orangetown for the next five years. It still needs approval from the Orangetown Town Board.

With 550 acres, Pfizer is such a hot topic because it affects surrounding residents in so many ways from taxes to potential new neighbors if they move out. However, at last night’s open budget meeting of the Nanuet Board of Education, a few things were cleared up.

"Most of Pfizer is in the Nanuet School District and the Town of Orangetown," said Anne Byrne, Nanuet School Board President. "The Board and Town of Orangetown and Pfizer have been in negotiations to reach a settlement on the Pfizer property (to give stability to all three parties)."

To discuss this tax litigation settlement, the three groups met Jan 24 and 28 in Nanuet and Morristown, NJ respectively, and for a third time Feb. 14 in Nanuet. What a way to spend Valentine’s Day.

Find out what's happening in Nanuetwith free, real-time updates from Patch.

The Board said that Pfizer will be putting out a statement shortly and the Town of Orangetown will be addressing this issue in the coming weeks.

“We are pleased to have amicably resolved property tax matters with the Nanuet School District and the Town of Orangetown,” said Grace Ann Arnold, Pfizer spokesperson. “We recognize the significant financial impact that the Pfizer Pearl River site’s transition will have on the community and on the Nanuet School District, in particular. We believe the settlement represents a compromise that provides for fiscal stability for the community, and also reflects the collective desire of the Nanuet Board of Education, the Towns of Orangetown and Clarkstown, Rockland County, New York State and Pfizer to preserve the economic viability of the Pearl River facility.”

Find out what's happening in Nanuetwith free, real-time updates from Patch.

The Orangetown Town Board has not approved the settlement. The board's next meeting is Tuesday, March 22. The issue was not part of the workshop for that meeting, but it still could turn up on the agenda.

"We’re still discussing it," said Orangetown councilman Mike Maturo. "It’s likely, but there is a lot to think about. I know the (Nanuet School District) is championing the plan and doing it quickly."

Several operations are closing in the upcoming years at Pfizer which will close whole and parts of buildings.

"The site is a hybrid site because it houses both manufacturing and research," said Arnold. "Roughly two-thirds of the property is developed." Check back with Patch tomorrow for details on what's closing and when.

Here is a look at what the settlement may pertain:

  • Pfizer agrees to withdraw its petitions for tax certiorari on property taxes for each of the past five years
    • At the end of the five years, the agreement will eliminate the district’s exposure to liability of $50 - 70 million and the Town of Orangetown’s liability for $20-25 million in court-ordered refunds.
  • Pfizer agrees to limit development of 200+ acres of undeveloped land to either commercial or over-55 adult housing, both of which will have minimal impact on future school district budgets and tax levies. The land in question includes Pfizer’s property bordering Convent road in the Town of Clarkstown.
  • The Nanuet School District agrees that Pfizer’s property taxes for each of the next five years will be $10,450,000, which represents a 45 percent reduction from $19,000,000.
    • Using the 2010-11 figures, Pfizer’s contribution to the District’s Tax Levy changes from about 38 percent to 19 percent.
    • Also, the Town of Orangetown agrees that Pfizer’sproperty taxes for each of the next five years will be $3,960,000, which represents a 45 percent reduction from $7,200,000

"This agreement will affect us the most year one and two," said Byrne. "After that, years three, four and five will not be as bad as those first two years this agreement is in place."

With this agreement, these three parties won’t have to meet up for future litigation for the next five years and this agreement, as Arnold mentioned, reflects the collective desire of the following groups to preserve the economic viability of this facility:

  • Nanuet Board of Education
  • Town of Orangetown
  • Town of Clarkstown
  • Rockland County
  • New York State Empire Development Corporation
  • Pfizer

Pfizer agreed to withdraw its petitions for property tax refunds for the past five years and by doing this, it takes away a tremendous liability. Also, the Nanuet School District can adjust and reach fiscal stability moving forward because this agreement allows it to avoid a potential of losing future litigation as well as refunds of $50-70 million.

With reduced taxes, Pfizer will now be in a better position to find more suitable tenants or buyers for unused facilities. The District knows that Pfizer is aggressively exploring opportunities to utilize facilities and property to preserve jobs and minimize the impact of the exit of manufacturing operations on the community. However, the schools also know that Pfizer’s success depends on several market factors such as present demand for research and pharmaceutical manufacturing facilities.

"Pfizer wants people to rent the property. They had people come in to look," said Byrne. "However, before the tax reductions, it was (difficult to rent out) with what the cost of rental would be."

Also, reducing the taxes means that utilizing the facilities will be more economically viable and potentially sustain tax revenue generated from the site’s existing structures.

The Board said that Pfizer will be putting out a statement shortly and the Town of Orangetown will be addressing this issue in the coming weeks.

**From the Board of Education’s statement regarding the approval of this litigation settlement with Pfizer, Inc.

Editor's note: This report was updated to reflect that the Orangetown Town Board still has to approve the settlement and to add a comment form Orangetown councilman Mike Maturo.


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