LIPA Tax Assessment to Go to Mediator

Huntington’s long-running dispute over the tax assessment on the Northport power plant may have taken a step toward resolution.

Newsday said the town, the Northport-East Northport Union Free School District, Long Island Power Authority and National Grid would work with a mediator to settle the dispute. The school district and town sued in state Supreme Court in Suffolk County in 2011, opposing LIPA’s 2010 attempt to lower the tax assessment on the power plant. The district and town cited a 1998 letter by LIPA’s then-chief Richard Kessel agreeing to never challenge taxes on the  plant. LIPA has questioned whether the letter is enforceable, Newsday said.

The Town will share the costs of the mediation with the  utilities and school board at the rate of $1,150 per hour, plus all out of pocket expenses, as well as a one-time $400 administrative fee.

Town Board member Gene Cook sponsored the resolution to approve the mediator, which passed 4-1.

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