Red Bulls Assessed $2.1 Million in Taxes
Albert Cifelli, the Tax Assessor for the Town of Harrison, stated at the October 26, 2009 Special Council meeting that the town will realize $2.1 to $2.2 Million in property taxes for the new Red Bulls Stadium. Cifelli answering a hypothetical question stated that an improvement valued at $100 million would generated a tax bill of $2.1 million to $2.2 million at Harrison's current tax rate. The Red Bulls stadium once built is suppose to be valued at $100 million. Harrison could use the extra tax money. Once again, residents turned out to the town meeting expressing their concerns above ever increasing property taxes.
The influx of new property tax money to the Town of Harrison however may hit a roadblock. The Red Bulls do not own the stadium property. It is not clear whether you can tax a tenant of a property and not the owner of the property. The Town of Harrison bonded $40 million dollars to purchase the property and the Town owns the real estate.
In an exchange between Councilman Steve McCormick, Tax Assessor Albert Cifelli, Town Attorney Greg Castano (Sr.), and Mayor Raymond McDonough the public learned that The Red Bulls will pay $150,000 per year to the County of Hudson earmarked to pay down the interest on the Path Station parking garage; the interest due from the Town of Harrison on the Red Bulls bond in 2010 is $3.5 million; the Town of Harrison will receive nothing else from the Red Bulls as there is no other monetary payments or rights received by the Town in its agreement with the Red Bulls; the interest on the Stadium bonds were suppose to be paid by Payment In Lieu of Taxes (PILOTs) from the Millenium RiverWalk project; Millenium only built two of the four planned housing units and thus there is a significant short fall in revenue earmarked to make the interest payments on the Stadium bonds. It is not clear where the money to make the Red Bull bond interest payment will come from. Since the bonds are backed by the Town of Harrison, property taxes may need to raised to make the payment.
Town Attorney Greg Castano (Sr.), when confronted by Councilman Steve McCormick as to who negotiated the deal between the Red Bulls stated that despite the fact that he was both the Town Attorney and the Harrison Redevelopment Agency attorney that special counsel Charles Astor* represented the town because he was a specialist in stadium contracts. In reviewing other stadium deals, the Town or governmental unit retains the naming rights of the stadium as a means of recouping public monies used to finance the stadium projects. The Town of Harrison did not retain those rights or obtain any other concessions from the Red Bulls (at the time the MetroStars).
*Please note: A Google search did not reveal an attorney by the name of Charles Astor who specialized in redevelopment or stadium contracts. The spelling on Mr. Astor's name may be incorrect.
The influx of new property tax money to the Town of Harrison however may hit a roadblock. The Red Bulls do not own the stadium property. It is not clear whether you can tax a tenant of a property and not the owner of the property. The Town of Harrison bonded $40 million dollars to purchase the property and the Town owns the real estate.
In an exchange between Councilman Steve McCormick, Tax Assessor Albert Cifelli, Town Attorney Greg Castano (Sr.), and Mayor Raymond McDonough the public learned that The Red Bulls will pay $150,000 per year to the County of Hudson earmarked to pay down the interest on the Path Station parking garage; the interest due from the Town of Harrison on the Red Bulls bond in 2010 is $3.5 million; the Town of Harrison will receive nothing else from the Red Bulls as there is no other monetary payments or rights received by the Town in its agreement with the Red Bulls; the interest on the Stadium bonds were suppose to be paid by Payment In Lieu of Taxes (PILOTs) from the Millenium RiverWalk project; Millenium only built two of the four planned housing units and thus there is a significant short fall in revenue earmarked to make the interest payments on the Stadium bonds. It is not clear where the money to make the Red Bull bond interest payment will come from. Since the bonds are backed by the Town of Harrison, property taxes may need to raised to make the payment.
Town Attorney Greg Castano (Sr.), when confronted by Councilman Steve McCormick as to who negotiated the deal between the Red Bulls stated that despite the fact that he was both the Town Attorney and the Harrison Redevelopment Agency attorney that special counsel Charles Astor* represented the town because he was a specialist in stadium contracts. In reviewing other stadium deals, the Town or governmental unit retains the naming rights of the stadium as a means of recouping public monies used to finance the stadium projects. The Town of Harrison did not retain those rights or obtain any other concessions from the Red Bulls (at the time the MetroStars).
*Please note: A Google search did not reveal an attorney by the name of Charles Astor who specialized in redevelopment or stadium contracts. The spelling on Mr. Astor's name may be incorrect.
Posted by John Pinho at 10/27/2009 4:32 AM 
Categories: Council Meeting, Property Taxes, Mayor, Redevelopment, Red Bulls
Categories: Council Meeting, Property Taxes, Mayor, Redevelopment, Red Bulls
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