Home Depot, Lowe’s, Verizon, win millions in tax appeals; city borrows $3.3 million to pay

$3,300,000 is being borrowed by the city to reimburse commercial property owners after companies successfully challenged the city’s tax assessment of their properties in New Jersey Tax court and won.

The city has been hemorrhaging large sums of money through tax appeals in recent years due to the excessively high assessment values of most properties within city limits. Last tax reevaluation which was completed in 2006 during the peak of the housing market just months prior to the housing crash continues to haunt the city.

Steinway Street Associates and Fabian-Alexandria, LLC. companies that own 39-51 Church Street, site of the defunct Fabian Theater, have appealed their property’s tax assessment and reduced the buildings taxes from $6.5 million to $5.2 million resulting in a revenue loss of $1.3 million for the city.

Home Depot, situated in Park Avenue and East 27th Street, appealed its property taxes and received a reduction of $1 million. The company’s previous assessment stood at $18.7 million the reduction brought the assessment down to $17.7 million, according to city document.

Verizon, owner of former Bell Telephone Company building on Hamilton Avenue and Fair Street, reduced its assessment from $10.5 million to $6.9 million, a loss of $3.6 million for the city.

Lowe’s, situated on McLean Boulevard, reduced its tax burden from $21.4 million to $20 million, resulting in a loss of $1.4 million for the city.

Allied Extruders of New Jersey, a company that owns 151 Sherman Avenue, reduced its property assessment from $2.8 million to $1.7 million, a loss of $1.1 million for the city’s coffer.

The $3.3 million the city approved to bond will cover a portion of the large number of expensive tax appeals. Council members voted in favor of bonding the $3.3 million during Tuesday’s council meeting.

“I do not believe this type of business that we’re doing,” said Rigo Rodriguez, councilman at-large, voting against the bond resolution. Mohammed Akhtaruzzaman, 2nd Ward councilman; Anthony Davis, 1st Ward councilman; Kenneth McDaniel, councilman at-large; Julio Tavarez, 5th Ward councilman; and Andre Sayegh, 6th Ward councilman, voted in favor of the bond ordinance.

Ruby Cotton, 4th Ward councilwoman; William McKoy, 3rd Ward councilman; and Kenneth Morris, 1st Ward councilman, were not present during the vote. Davis said the resolution has his vote for the first reading; a second reading of the resolution is set for the next regular meeting of the council.

Monserrate Scarborough

Who to blame for this disaster? Guest under who's watch this happened in 2006? Mr. Jose "Joey" Torres was mayor of Paterson from 2002 to 2010. The article itself has the answer: "The city has been hemorrhaging large sums of money through tax appeals in recent years due to the excessively high assessment values of most properties within city limits. Last tax reevaluation which was completed in 2006 during the peak of the housing market just months prior to the housing crash continues to haunt the city." VOTERS WATCH OUT!!!! This guy is one of the several politicians running for mayor and the very ones responsible for the current condition the city of Paterson is in today.
- Hader Son!
  
  That I know of, thise stablishments were not there when he became mayor, so what are you trying to say that we are better of without these businesses in the city?
  I didn't think so!
- Edward Franks
  
  This is the stupidest argument I've ever heard. The assessment was forced on the city by the county because one had not been done for 30 years and as the article says was done at the height of the market. Joey Torres IS NOT responsible for the housing crash that affected the entire country (although some of you fools would like to blame him for that too) the real story here is how much did Torres ADD to the city's revenue. If you just take the Hamilton Hotel, Lowes and Home Depot Torres added $42.9 million dollars to the city tax revenue. None of those businesses were there when Torres took office in 2002. AND that doesn't include Center City and the hundreds of businesses Torres brought to the city in his 8 years as Mayor!
  - http://www.facebook.com/animalabusewar Animal Abuse War
    
    What good are all the millions you claim he brought in if we are now losing them to wrongful assessment lawsuits?
    - Edward Franks
      
      What's wrong with you! Paterson GAINS $45 million and then DEDUCTS $3 million…Paterson is AHEAD $42 million… BUY A CALCULATOR IF YOU CANT COUNT,
- http://www.facebook.com/animalabusewar Animal Abuse War
  
  yet another thing to add to his misdeeds list.
http://www.facebook.com/animalabusewar Animal Abuse War

so the people whose salaries we are paying with our tax dollars, to do a proper job of tax assesments, are screwing us over twice.first we pay them to do the job they aren't doing right,and now we are paying millions for their screwups.and no officials in our city have done a thing about it all these decades?