The Riverwoods condominium development is set to get almost $1.4 million in property tax refunds, under the terms of a settlement approved by the New Castle Town Board.
The agreement, which was unanimously approved by the board at its Tuesday meeting, includes a total refund of $1,392,494.81.
Looking at each tax collecting entity's share of the payout, the agreement calls for the town giving a refund of $219,996.47 for 2009, 2010 and 2011 property taxes. Westchester County will refund $237,493.28 for that time period. The Chappaqua school district will have the largest share, at $935,005.06. The 2011 school tax refund will be accomplished through a tax cut for the 2012-13 school year, rather than a straight payment.
The payouts are coming as a result of Riverwoods challenging its property assessments, claiming that they are too high. Condos, unlike single-family homes, take into account properties’ rental income potential, which is also how commercial properties are assessed.
Under the settlement, Riverwoods will get assessment reductions for its complex of $4,866,850 for 2009 (from $15,336,850 to $10,470,000), of $4,537,514 for 2010 (from $15,344,850 to $10,807,336) and of $3,913,195 for 2011 (from $15,358,850 to $11,445,655)
The settlement was approved after negotiations between attorneys for the town, school district and Riverwoods.
Don Mahaney, vice president for was pleased to hear the news.
“Of course, we’re delighted,” he said. The development’s board has also approved the settlement, he said.
Each property owner will get their own share of the refunds, Maheny said. For properties that changed ownership over the refund period, the money will be divided among the current and former unit owners.
The issue of tax challenges has been a pressing issue throughout the region, and has led to renewed interest among some elected officials to do comprehensive property revaluations. Greenburgh Supervisor Paul Feiner, in a recent letter to New Castle’s Town Board, cited such challenges as being a reason why he would like to see several municipalities band together to study a joint revaluation, with the possibility of a shared vendor for the process helping to lower the upfront costs. New Castle’s board has opted to sign on, and is among several municipalities, including Ossining, Greenburgh, North Castle and Yonkers, to do so.
Riverwoods is located in New Castle’s northern panhandle, in the Mount Kisco postal zone. It has 148 units that were built in four phases, according to Mahaney, from the mid 1980s to the late 1990s.