Valhalla settles lawsuit with Greenburgh - town to receive $1.1 million

The Valhalla School district voted to settle a lawsuit
with the town of Greenburgh last night and will pay the town $1.1 million over a
nine year period (with about half of the settlement being paid during the first
two years).  The lawsuit was filed after the NYS Comptroller's office determined
that the town was prohibited from directly giving  the school district $650,000
a year from revenues we received from the WESTHELP homeless facility--which is
located in the school district.  The Greenburgh Town Board will vote to support
the settlement at a special meeting this coming Tuesday. 

In 2004, when the Town Board unanimously voted to enter into the WESTHELP
partnership with the Mayfair Knollwood community the goal was to persuade the
neighborhood to accept homeless housing in their community. 108 homeless
individuals were provided with transitional services.  Maria Cuomo Cole, sister
of Andrew Cuomo (who built WESTHELP) offered to close the facility (which had
provided services to the community for a decade) UNLESS the neighborhood
supported continuing WESTHELP.  The Town Board, WESTHELP, Westchester County,
Mayfair Knollwood civic association  all agreed that the partnership was a
win/win. The county would be able to help the homeless by keeping a shelter
operational. WESTHELP was able to keep their promise to the community by staying
in the community only if the community supported the facility. Residents of the
Mayfair Knollwood community received benefits for their children and the school
district was able to offer residents programs that they would not otherwise
receive. A non binding vote of residents of Mayfair/Knollwood was taken before
the agreement was signed. 90 people voted yes. 2 voted no.  Attorney's for the
county, WESTHELP and town reviewed the contract. We all thought that the
agreement was legal. This agreement would have been legal if it had been
structured differently--if WESTHELP had sent the school district a check
directly the agreement could have continued. 

Greenburgh, after receiving a directive from the State Comptroller's office
to stop paying Valhalla the annual payments, complied with the directive. The
school district sued the town trying to enforce the agreement. The Town Board
and I authorized Robert Bernstein and Herb Rosenberg to intervenue in the
lawsuit (without compensation). A countersuit was filed seeking reimbursement of
the funds.  Last year State Supreme court Justice Nicholas Colabella directed
that the school district return over $1.8 million to the town.

Although Herb Rosenberg, Robert Bernstein and I have had some disagreements
in the past, I am appreciative of their efforts helping the town and school
district reach a fair settlement.  This settlement is manageable for the school
district. Had the school district appealed the case and lost - their financial
exposure would have been much greater: they could have been forced to pay the
town much more ($1.8 million plus interest).  And, they would not had 9 years to
pay the town the dollars owed to us.  They would also have had to pay
significant legal fees.

I am also pleased that the school district and town will be able to put this
dispute behind us. We can now work together to enhance the quality of life of
children living in our town.

PAUL FEINER