With real estate mogul Donald Trump’s restaurant/catering facility for by state officials last month, the Wantagh School District is trying to determine if they can receive tax revenue from the project.
The 38,560 square foot project called Trump on the Ocean is slated to be built at the former site of the Boardwalk Café, which closed in 2003. The property at Jones Beach is owned and operated by the state and is exempt from paying taxes to the Wantagh School District. However, Philip D'Angelo is leading an effort to see if a payment in lieu of taxes (PILOT) agreement can be obtained for the district.
D'Angelo and the Wantagh school board are sending letters this week to Governor Andrew Cuomo and Rose Harvey, commissioner for the New York State Office of Parks, Recreation and Historic Preservation requesting PILOT funds from the Trump project.
"We'd like to increase our revenue stream," said D'Angelo on why he is pushing for the PILOT funding from the planned catering facility.
D'Angelo said he has communicated with State Sen. Charles Fuschillo, R-Merrick about trying to obtain PILOT money from Trump on the Ocean and is hoping the Albany lawmaker can rally support in the state legislature for the funding.
[Senator Fuschillo] has been a good friends to the district and I'm sure he'll do whatever he can to help us.," D'Angelo said.
New York State Parks spokesman Dan Keefe said that PILOTs on state property can only be authorized by legislation from Albany. Officials for the Trump Organization could not be reached for comment.
The deal struck between Trump and the state last month following a four-year legal battle calls for a new 40-year lease for construction and operation of the facility. Trump will make a yearly base rent payment of $200,000 to the New York State Office of Parks, Recreation and Historic Preservation adjusted for the Consumer Price Index, which will total around $13 million by the end of the lease.
Do you think the Wantagh School District should receive some tax revenue from the Trump on the Ocean project? Tell us in the comments.
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For clarification, Trump was not singled-out for a tax exemption. State lawmakers wrote a law many years ago exempting tenants and concessionaires of state parks from paying property taxes anywhere in the state. There have been a very limited number of non-binding precedents where either park tenants or the state itself have agreed to pay PILOT's to affected taxing jurisdictions as a result of revenue "lost" because of that law.
I agree with the others and I almost choked when I saw the $200K annual rent. REALLY?!?! I don't live in Wantagh, but I do live in the WFD service area. Why should I/we pay for that service for Trump? Would love to know more of the details on this issue. What year was the law on no vendor taxes written? That needs to be re-examined, especially in this economy. We little people are being stretched to the limit while Trump pays nada? Who at NYS made this deal anyway? I think I recall something about paying a percentage of sales to NYS? If true, maybe the State can share a percentage of that with the Wantagh community?
Trump is doing business on state land under a contract with the state. I know of no students attending our schools who live south of the toll barrier on state land. I fully understand the outrage with school taxes as I pay them too. However, arm-twisting bordering on extortion is not a solution.
Both of you being vocal against WUFSD's attempt to negotiate PILOT's from Trump would indicate that neither of you live in the WUFSD. However, your knocking Wantagh's effort in this regard is like people in one district knocking fundraising in a neighboring district, say, as for sports or any purpose. Not neighborly at all. Borderline mean-spirited, in my opinion. There is active precedent for paying PILOTS to a school district for a third-party business installation on state property within the school district. This precedent has nothing to do with schooling or with fire protection.
-background PILOTs are very common locally and are almost given out like lollipops for almost any type of private or public project that might keep/create a job. key to PILOTs, is that some part of government takes a taxable resource off the books: General Municipal Law §854(17) defines PILOTs as “any payment made to an...affected tax jurisdiction equal to the amount...of, real property taxes...which would have been levied...if the project was not tax exempt by reason of agency involvement.” -some examples LIPA/National Grid routinely pay PILOTS to almost every school districts Island-wide for their various plants and distribution stations. the Wantagh school district is currently receiving a small PILOT for the Nepture power cable that runs under Wantagh Parkway while Westbury SD at the headend will get $30 million over 12 years. in 2006, the State voted to pay the Three Village School District PILOTs when Stony Brook Univ acquired Gyrodyne. in 1999, when Nassau County's IDA brought Goya Foods to ex-Grumman space, tax-exempt, Bethpage Schools were scheduled to get a $500K PILOT. another PILOT went to Port Washington Schools for the County's assistance to the Pall Corp. the list goes on... -why Wantagh will continue to negotiate its PILOT back in 2007, estimated lost tax revenue to the schools and fire dept. would be a million dollars. (www.nassaucountyny.gov/agencies/Assessor/NewsRelease/2007/2007-02-23.html)
Explain to me WHAT part of Trumps Jones Beach investment is taking a a taxable resource "off" the books". If anything he is : Building a perpetuating income producing resource for the State @ NO COST to the State. even If the "business" Fails to be profitable the State still has OWNERSHIP of the newly built facility which again was built @NO cost to the state or local taxpayers. Never before nor currently has or is ANY FOOD consession at ANY of the State, County or Town Parks paid Pilots - What makes you think this is any different? Not one of your citied arguements is in anyway HOSPITALITYY related. While I applaud the WUFSD's NEW Superintendent for seeking additional revenue resources for the district i wonder if this shouldnt have been the BOARDS issue to pursue while the New Superintendent acclimates himself and prepares the district for the educational rigors & challenges ahead. As the new guy on the block while i can appreciate his zeal to insure Wantagh gets any monies it can , imho i also feel he should have turned this idea over to the board to pursue while he concentrates on educational issues like MUCH needed full day kindergarten as Wantagh is one of the FEW SD's on LI that doesnt have it.