Board OKs tax refund for Hudson Valley Mall

The Board of Education has signed onto a proposed settlement that would lower Hudson Valley Mall’s property assessment to $39 million for 2016 and $6.57 million for 2017 through 2021.

The deal, which still must be acted on by the town of Ulster, where the mall is located, and Ulster County, would result in a combined $1.4 million refund to the mall’s owner from the three taxing entities for 2016.

The school district would pay $928,446, while the town of Ulster would pay $336,533 and Ulster County would pay $134,588. The refund payments to mall owner Hull Property Group would be spread out over five years.

The deal leaves the mall’s 2015 assessment unchanged at $66 million.

The Kingston school board endorsed the settlement at its meeting Thursday evening. The Ulster Town Board met at the same time but did not act on the proposal because it was not received by the board until after its meeting began. The Ulster board is expected to hold a special meeting Monday to address the issue.

Town of Ulster Supervisor James Quigley said the $1.4 million refund could have been as high as $4.5 million if Hull had not dropped its challenge of the mall’s 2015 assessment.

Quigley said the $6.57 million assessment for 2017-21 reflects an adjustment based on the town’s equalization rate and is equivalent to a fullvalue assessment of $8.1 million, which is how much

Georgia-based Hull paid when it bought the mall in January.

Hull bought the mall at 1300 Ulster Ave. (U.S. Route 9W) after the previous owner, PCK Development, defaulted on nearly $50 million in debt related to the property.

Quigley said settling the matter now saves the town legal expenses it would have incurred if the matter had dragged out in court.

“Litigation could have taken ... up to two years,” the supervisor said, adding that Hull said it would not make any improvements to the mall while a court case was in progress.

The assessment agreement also stipulates that if the Target store at the mall — which, though attached to the building, is legally on a separate parcel — has its assessment reduced below the current $7.1 million, Hull will reimburse the taxing authorities up to a total of $100,000 for each of the years involved.

Quigley said Target has withdrawn a recent assessment

challenge but could file another one.

The supervisor noted the new agreement allows the mall’s assessment to be increased if medical group Health Quest follows through with its plan to occupy the vacant former Macy’s store at the mall.

“If Health Quest enters into a lease to take the Macy’s building and installs the improvements they’ve indicated they will install, the town has the opportunity to increase the assessment by the amount of their improvements,” Quigley said.

He said that amount could be as high as $17 million.

Hudson Valley Mall — a single-story structure that opened in 1981 and expanded in 1982, 1989 and the early 2000s — currently is anchored by Target, Sears, Best Buy, Dick’s Sporting Goods and a movie multiplex. Besides the former Macy’s space, the mall has a vacant anchor position where J.C. Penney used to operate.