LaReddola Lester & Associates, LLP
The Firm challenged a recent resolution of the Town of Hempstead Industrial Development Agency to grant industrial development agency benefits under N.Y. General Municipal Law Article 18-A to a proposed 336 unit residential apartment complex. The Article 78 proceeding was filed on behalf of six prominent Village of Hempstead residents on the ground that an industrial development agency does not have the legal authority under New York law to grant financial assistance to a residential apartment building project. Steven M. Lester of the Firm stated: “This proceeding challenges the industrial development agencies’ longstanding but unlawful practice of granting significant tax benefits to projects that do not further statute’s objective of promoting commerce and industry, and creating jobs. In fact, the specific project challenged here would grant the developer over $20 million in tax benefits for the creation of only 11 full-time jobs. Neither the Village of Hempstead nor the Hempstead School District can afford such a large reduction in taxes for so little economic activity generated by the proposed residential apartment complex.” In the Matter of Donald L. Ryan, et al. v. Town of Hempstead Industrial Development Agency, et al., Index No. 005324-2016 (Sup. Ct., Nassau). (See Notice of Petition and Petition and Points of Law).