Imagine the surprise of Third Street property owners this week when they opened their assessment notices and found that the value of their buildings had skyrocketed, increasing by 100 percent or more in some cases.
The increases could mean thousands of dollars in additional property taxes for businesses struggling to stay alive as they wait for the pretty pictures produced by USA Niagara, New York State's alleged development arm in the area, to become reality.
The enormous jump isn't in anticipation of the $3.7 million revitalization of the planned downtown entertainment district, said Niagara Falls assessor Dominic Penale. Nor are the hikes solely the result of the renovations at a number of buildings, though the assessor's office makes note of any additions or remodeling.
Mainly, though, the increased assessments, and the higher tax bills they produce, are the first tangible impact on the neighborhood by the flood of foreign investment that's taken place there over the past year.
Investors, primarily from China, snapped up a number of properties, often paying well above the assessed value. That inflation, in turn, drove the assessment hikes recommended by GAR Associates, an Amherst firm contracted by the city.
"These boarded-up buildings are selling for double their assessment, if not triple in some cases," Penale said. "I think I was consistent on the increases. We're reflecting what the market value is, and we know there are significant changes coming to Third Street, too."
At this point, none of those dilapidated buildings that changed hands are about to undergo makeovers, and no new businesses are scheduled to open in the foreseeable future. But while there's increasing feeling that many of those purchases were speculative, Penale insisted the new assessments aren't.
"We're not speculating on anything, we're only reacting to what's already occurred," he said. The increases were particularly painful to owners who were inadvertently mailed last year's estimates, which led some to believe their assessment hadn't changed -- at least until they read the fine print. Penale apologized for the error, and said about 8,000 of the incorrect notices, printed on white paper, went out before it was caught. The actual assessments for 2005, on yellow paper, went in the mail late last week.
Property owners who challenge the city's estimating might point to portions of Niagara Falls Boulevard, where many assessments fell this time around, when making their case. A series of purchases made by Benderson Development at inflated prices artificially raised assessments on properties around them during past reappraisals, but values are starting return to their natural levels.
That's not much solace to those getting stuck with doubled assessments, which amplify the 6-percent tax increase imposed in Mayor Vincenzo V. Anello's 2005 budget.
And the region's unique philosophy of development through taxation isn't over. USA Niagara officials are stepping up their pitch to make Third Street a "business improvement district," which is bureaucratese for "charging you even more for services you'd think would be paid for by your regular tax bill."
You know, "luxuries" like police patrols, adequate lighting and walkable sidewalks.
While USA Niagara was originally pitched as a mechanism to bring much-needed cash west from Albany, it's rapidly turning into yet another money-sucking entity in a region already saddled with far too many.
And for reasons that must make sense to someone, Gov. George Pataki is pushing a plan to put the city's share of revenue from Seneca Niagara Casino, which comes to $11.59 million this year, under the control of USA Niagara.
Of course, the agency's jurisdiction is expressly limited to downtown, meaning that if Pataki gets his way, the rest of the city can most likely pound salt.
At least those unhappy with their assessment only have to fight City Hall, and not Albany. Penale stressed that the assessment notices are preliminary and can be appealed.
Owners can research the values of surrounding properties at the Main Street and LaSalle branches of the library, as well as the Carnegie Building at 1022 Main St.
Assessment information is also available online at www.niagaracountyassessors.org/nf/assessment, with properties searchable by owner's name, address or section, block and lot number.
There are also worksheets available at the research locations and online for four property types -- commercial, residential, condominium and vacant land.
Owners who want their assessment reviewed need to set up an appointment for an informal hearing by calling either 286-4329 or 286-4362 by March 14, and can make their case in person or by submitting evidence in writing.
"They can tell us about their property and why they don't think their assessment is reasonable," Penale said.
Anyone still unsatisfied with an assessment after the informal process can file a formal complaint with the Board of Assessment Review in May. After that, assessments can be challenged in State Supreme Court by commercial owners, or through a small-claims proceeding for residential properties.
"They do have two really significant shots at it," Penale said. "If they still feel it's not reasonable, they can challenge the assessment in court."
| Niagara Falls Reporter | www.niagarafallsreporter.com | March 8 2005 |