State To Audit IDA, School District Over Mall Tax Break

New York Comptroller Thomas DiNapoli announced on Monday that his office would initiate an audit of the Town of Hempstead Industrial Development Agency (IDA) and Valley Stream School District 30 over the tax breaks the IDA gave to the Green Acres Mall.

In 2014, the IDA gave tax breaks to the mall's owner to build the Green Acres Commons -- an extension to the mall. The deal gave big breaks to the mall, but cost Valley Stream taxpayers thousands more on their school taxes. Some homeowners so their taxes go up more than 10 percent in a single year.

"The Green Acres project has drawn noticeable criticism in the community," DiNapoli said in a release. "Several local elected officials, including state Sen. Todd Kaminsky, Assemblywoman Michaelle Solages, Nassau County Comptroller George Maragos and Valley Stream Mayor Edwin Fare, have brought the concerns of their constituents to the attention of my office. As a result, our auditors determined there were sufficient questions about the project that warranted a closer examination."

The audit of District 30 will focus on budgeting practices and the resulting property tax levy related to the Payment in Lieu of Taxes associated with the Green Acres Mall project. The review of the IDA will center on compliance with policies and procedures related to approval of the Green Acres Mall project.

The comptroller's office said there's no timeline for when the audits will be completed.

Town of Hempstead Supervisor Anthony Santino also praised the comptroller for the audit. "I am pleased that the New York State Comptroller will be performing an audit of the PILOT agreement between the owners of the Green Acres Mall and the local Industrial Development Agency," Santino said in a statement. "The Town Board shares the Comptroller’s concerns on this matter, having replaced the IDA Board, demanding new hearings on the PILOT agreement and pushing for a thorough economic impact study on the deal. I strongly urge the IDA to fully cooperate for the sake of taxpayers who are impacted by the PILOT.”

In a statement, Kaminksy thanked the comptroller for starting the audits.

"I applaud the comptroller for protecting taxpayers with this investigation," he said. "The lack of transparency around this agreement has caused unprecedented controversy and public outrage, and getting to the bottom of it should be our top priority."

Solages echoed Kaminsky's sentiments.

"The Town of Hempstead Industrial Development Agency’s minimal communications with the public was unacceptable," she said. "The communities affected by this egregious tax increase deserve transparency and accountability. While we await the findings of this audit, I urge residents within the Valley Stream Central High School District to continue calling for a repeal of the Green Acres Mall tax break."

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