Hempstead Town Fights For School District's Survival

Town of Hempstead officials joined representatives from the Island Park village and school district on Wednesday to show their support for the village, which is facing a potential tax crisis. LIPA is challenging the assessment of the E.F. Barrett power plant, which is located within the school district. If successful, it could mean taxpayers in the district will see their taxes go up by thousands of dollars.

The town officials called on LIPA to repower the plant, meaning to build new equipment there to make it a modern power facility. Doing so, they said, would preserve the facility's property tax assessment. They also called on the Nassau County Assessment Department to oppose LIPA's tax grievance, which is seeking to reduce the taxes on the facility by 90 percent.

Island Park has a small school district, with just one elementary and one middle school. Students attend high school in either Long Beach or West Hempstead. The power plant's taxes pay for nearly half of the district's budget. If the taxes on the power plant are reduced, than homeowners and business owners will see a massive spike in their taxes. Donald Clavin, the Town of Hempstead's receiver of taxes, estimated the average increase to be $3,000 for homeowners.

“LIPA’s pursuit of a property tax challenge associated with the E.F. Barrett Power Plant in Island Park is heartless and threatens the very viability of this working class community,” said Councilman Anthony D’Esposito, who lives in Island Park. “We believe there are genuine options that could work for both LIPA and local residents, preserving the level of support that currently exists for the area’s property tax base.”

Specifically, D’Esposito is strongly urging LIPA and PSEGLI to commission a new study to re-examine projected energy needs over the next 20 years with an open mind regarding the repowering of the Barrett Plant. He called a new study logical and warranted in view of the fact that a recent PSEG study, which was released in April of 2017, reversed LIPA’s long-standing position that Barrett should be repowered to meet significantly increasing energy demands that energy experts at local utilities projected over the next couple of decades. LIPA had long said that repowering Barrett was too expensive.

The necessity of a Barrett repower with a new clean and reliable natural gas facility was evidenced just a few years ago when National Grid made an application for a “Certificate of Environmental Compatibility and Public Need” to the state Board on Electric Generation Siting and the Environment. In fact, as far back as 2013, National Grid officials met with town staff to discuss how the town could help expedite the permitting process for a Barrett repower project. Unfortunately, National Grid needs LIPA’s approval for any repowering project.

After years of publicly expressing concern about our region’s ability to meet electric demand over time, and predictions that energy demands would grow exponentially over the next 20 years, the 2017 PSEG report concluded that electric supplies on Long Island were sufficient to meet growing needs for the next 18 years, at least.

“The repowering of the Barrett Plant would produce a new, clean, 21st century energy center that would reduce emissions, significantly cut greenhouse gases and — because of its operational flexibility and faster start times — enhance the integration of renewable energy sources like those supported by the state’s administration,” said D'Esposito. “LIPA should immediately withdraw its tax assessment challenge as it conducts a thorough re-examination of future energy needs and a newly upgraded power facility at Barrett.”

At the same time as D’Esposito and Clavin called upon LIPA and PSEG to renew its study of the region’s future energy needs and repowering of Barrett, they also urged the Nassau County Department of Assessment to seek dismissal of LIPA’s tax certiorari proceeding. The town representatives said that the consequences of a 90 percent reduction in Barrett’s property tax assessment would have a devastating effect on the Island Park community. In fact, Island Park Union-Free School District officials have estimated average property tax increases of 72 percent if LIPA were to be granted the assessment reduction.

“Island Park taxpayers don’t deserve to be slammed with 72 percent property tax increases by a callous and uncaring power authority,” said Clavin. “These homeowners have been hit with millions of dollars in recovery costs when their hometown was swamped by Hurricane Sandy. This tax reduction scheme by LIPA will lower the utility’s costs if successful, but it will simultaneously destroy a lovely middle-class community that can ill-afford another devastating financial hit to the taxpayers’ wallets.”

Photo: Town of Hempstead