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Sale Puts Village of South Nyack One Step Closer To Satisfying Bond Debt Before Its March 31st Dissolution
By Tina Traster
The Village of South Nyack DPW building is in contract for sale, bringing the village one step closer to selling off its assets as it prepares for a March 31 dissolution.
Village Attorney Jim Birnbaum confirmed Durso Trucking and Boom Services Inc., a Congers-based construction company, is in contract with the village to purchase the Department of Public Works building and the adjacent municipal lot for $1.65 million.
“We’re looking to close long in advance of the dissolution date,” said Birnbaum, adding the village is using the sale of property to satisfy its outstanding bond obligations.
The attorney said the sale of the DPW building on 65 Brookside Avenue, along with a hoped-for sale of the village hall building on South Broadway, “will go a long way toward satisfying the outstanding bond debts, rather than leaving them to the legacy district.” Birnbaum said the village also plans to sell several trucks.
The sale of the DPW building is represented by Paul Adler of Rand Commercial. The prospective purchaser has offered the asking price for the concrete and steel 6,724 square-foot warehouse and additional 1,500 square feet of office space. The building was marketed to construction and landscape contractors.
Durso Trucking offers specialized trucking and knuckleboom services in New York City and the surrounding area. The company, which plans to expand its operations to South Nyack, includes operated and maintained heavy rigging, specialized lifting, and transportation, according to the company website.
“This is a good fit,” said Birnbaum. “It’s a very strategic and valuable property. Durso has submitted an attractive offer and we’re working toward the contract and closing over the next few weeks.”
According to the Village’s Dissolution Plan as of March 31, it is estimated the village will have outstanding bond principal and interest totaling $791,017. The village purchased street light fixtures from Orange and Rockland Utility and engaged in an improvement project to convert street light infrastructure to LED lighting through a contract with the New York State Power Authority. It is anticipated that approximately $241,414 of cost, including financing will remain as of March 31, 2022.
Like real property, personal property owned by the village can be sold to reduce debt through a transfer to another municipality or through public sale. Personal property includes vehicles, large equipment, office equipment, furniture, tools, parts inventory, and other items. The Public Works Superintendent inventoried the equipment and placed a potential value at approximately $1.5 million. Even with a 25 percent to 50 percent discount off this estimate, there could be a value of $750,000 to $1 million. At the time of dissolution, any remaining village personal property will revert to the Town of Orangetown.
Upon liquidation of village assets, the proceeds will be placed in an escrow account to be established and managed by the town to be held for the purpose of funding outstanding village liabilities. These liquidated assets will be used in the first instance to pay for any outstanding accounts payable of the village, debt service, street lighting project costs, payout of uncompensated balances and accrued vacation days to employees.
Also according to the village’s dissolution plan, the village must use any remaining fund balance and the proceeds of the sale of the Village Hall and the DPW properties and the sale of vehicles and equipment to offset the $1,072,431 in liabilities (other than retiree health). Based on the information at press time, it appears the Village, in fact, has assets that will exceed the $1,072,431 in estimated liabilities (other than retiree health insurance) and may be able to apply the additional assets to offsetting, in part, the retiree health and any other long-term liabilities.
Any remaining debt and ongoing liabilities will the responsibility of a newly formed “legacy district” made up of the former village properties. The legacy district will be responsible for any obligations that existed prior to dissolution.
Adler is also representing the sale of the South Nyack Village Hall and Police Department, with an asking price of $615,000. The 2,152 square-foot building is located on South Broadway near the beginning of the Esposito Trail and the Gov. Mario Cuomo Bridge Shared Use Path. Zoned RG-6, allowable uses include a one or two-family dwelling, a public school, community residence, house of worship or professional offices and studios. However, the village is in the process of rezoning the property to broaden its use for more commercial uses, according to Birnbaum.
Under New York State’s Village Law, unless provided otherwise in a dissolution plan, local laws in place today in South Nyack would remain in effect for two years following the dissolution of the village. This includes village zoning and subdivision rules; the two-year period would become effective on the date of actual dissolution. But the Town of Orangetown has the power to change the zoning.
On Dec. 17, 2020, South Nyack village residents voted for dissolution of the village. The Village Board voted to approve the village’s dissolution plan on July 30. The effective dissolution date is March 31, 2022, when the village will cease to exist and become a hamlet within the Town of Orangetown.
The dissolution plan addresses employment issues related to village workers, the village’s debt and properties owned by the village. The Orangetown police department will begin patrolling the village in 2022.
Village homeowners in the median range can expect to save an estimated $1,440 per year in taxes.
The dissolution eliminates the village DPW. Most of the responsibilities will be picked up by the Highway Department. Orangetown would add three positions. The estimated cost is $331,000. Residents will need to contract on their own for refuse removal under Orangetown’s agreements at a cost of about $360 per year.