South Nyack: What lingering DPW sale could mean for village debt, taxpayers' burden

SOUTH NYACK – The village's plan to pay off its multimillion-dollar debt has hit a potentially costly bump for taxpayers prior to the government's dissolution on March 31.

As the clock runs out on the village government, formed in 1878, its debt remains at $1.2 million.

The debt satisfaction before Orangetown takes over depends largely on selling off Village Hall for $615,000 and the Department of Public Works complex for $1.66 million, officials said. The village also is selling off trucks and other equipment and has completed a transfer of the Depot Place firehouse to the Nyack Fire District.

Mayor Bonnie Christian and Village Attorney James Birnbaum said the DPW sale will not be closed before April 1, leaving Orangetown in control of whether the proceeds go toward the debt, known as the Legacy District.

If Orangetown doesn't allow the proceeds for the debt, now-village taxpayers' obligations could jump by $2.1 million, Christian said, noting Rockland is the second highest-taxed county in the state, behind Westchester.

South Nyack dissolution: What's happening as village approaches March end date

South Nyack Village Hall: Bike shop, cafe coming with $615K sale; zoning change argued

Voters decide: South Nyack residents vote to dissolve the village government

"Orangetown board has not made it clear the proceeds of the sale will be applied to the legacy district," Christian said. "That's upsetting to us, as well as to our village taxpayers."

Orangetown supervisor: Tax issue complicated

Supervisor Teresa Kenny said she supports the property sale proceeds going toward the debt, even beyond the April 1 deadline.

While the issues are not insurmountable, Kenny said they have become more complicated.

Kenny said there are concerns the town could be left with dealing with the zone changes and land-use planning. She said there's potential litigation, since not all residents support the sale of the DPW complex and parking lot to a trucking business. The Village Hall would become a bicycle shop and café.

"Although I continue to hold that position, I had anticipated that the Village Board would have taken steps to sell the properties much sooner than they did," Kenny said. "As a result, it appears the town may be left to deal with zone change and planning issues, which many residents are not happy with, as well as the potential for litigation."

Kenny said it's "premature to speak with the Town Board until we know exactly what the town will be dealing with regarding these properties after the dissolution."

She said she found the "suggestion that the Town Board will not do the right thing to be offensive and, worse yet, I worry that it will unnecessarily incite South Nyack residents when there is no basis for making such a statement."

Attorney cites 'reasonable concern'

South Nyack is holding a public hearing on the zone change for the DPW complex and a municipal parking lot on March 18.

Birnbaum said the resolutions on the zone change and sales would include notations the proceeds would cover the debt.

"There's a reasonable concern for our residents," he said. "We lose control to Orangetown, part of the dissolution. We are doing what we can to protect our residents. We don't want a battle."

South Nyack voters put themselves in the hands of the Orangetown government when they overwhelmingly supported dissolving their government on Dec. 17, 2020. The main issues were high taxes, rising costs, and private school yeshivas operating at the former Nyack College campus.

While Orangetown is not legally held to the Legacy District, residents and officials believe there's a responsibility to the residents.

Resident Bruce Forrest wrote on Facebook that "there's a moral/ethical/civic responsibility issue here that has to be addressed.

"I am yet to hear a plan on how those who do not want the sale to go through plan to compensate their taxpaying neighbors for the higher tax rates that they will suffer to ensure those limited number of residents continue to have the benefit of free off-street parking," he said. "What is actually taxpayer-subsidized off-street parking to be explicit."

Say goodbye to South Nyack village government; dissolution on March 31 becomes final

Report: South Nyack property owners would see tax savings, Orangetown services under the dissolution

Trucks spark concern, response

Some Brookside Avenue residents are concerned about Durso Trucking operating in the residential neighborhood, contending it would decimate the housing values and neighborhood, according to a flyer distributed by brooksideparkingsouthnyack.com. They claim 18- to 24-wheel trucks would inundate the streets and take up street parking.

They dubbed the spot zoning to accommodate the sale as illegal and an environmental review was needed. The group contracted with the South Nyack law firm of Feerick, Nugent, MacCartney to potentially challenge a zone change in court.

Birnbaum has advised the zone change is legal. The board changed the criteria based on Rockland Planning Department recommendations and will hold a new public hearing.

Christian said many residents receive "erroneous information regarding the sale of the DPW/parking lot property.

"There will be no 18-wheelers coming into our neighborhoods," she said.

She said the board has been working with nearby villages and Orangetown to ban 18-wheeler trucks from local streets. She said Durso would use the DPW property for storage and the trucks used to transport the materials are similar in weight and length to those used by the village DPW.

She said the operation would work from 7 a.m. to 7 p.m. Monday through Friday and no trucks would be allowed to park overnight on village streets. Durso, she said, would negotiate a fee for neighbors to continue using the parking lot.

Steve Lieberman covers government, breaking news, courts, police, and investigations. Reach him at slieberm@lohud.com. Twitter: @lohudlegal. Read more articles and bio. Our local coverage is only possible with support from our readers.

This article originally appeared on Rockland/Westchester Journal News: South Nyack dissolution: Lingering sales could complicate takeover