Putnam Officials Say Land and Money Should be Returned

Putnam County Executive MaryEllen Odell, Putnam County Sheriff Donald B. Smith and Carmel Town Supervisor Kenneth Schmitt recently released a joint statement asking that a now 36-acre parcel of land “conveyed” to the Putnam Community Foundation [PCF] be remitted back to the county after the foundation failed to live up to a promise to build senior housing on the parcel and also failed to pay more than $200,000 to connect to sewer and water systems.

At their Wednesday, May 9 meeting the Town of Carmel Planning Board voted unanimously to approve the subdivision of half of the remaining land, through which the PCF proposes to sell 18 acres to the Putnam Hospital Center for $2 million, according to the statement released by Odell, Smith and Schmitt.

“The proposed subdivison that [was]…before the Carmel Planning Board…will basically render the remaining land-locked  portion of the [36] acres unmarketable, continuing to keep it off the tax rolls and impede any economic and job opportunities,” the statement read.

The statement gave a detailed account of the how the PCF, founded by former State Senator Vincent Leibell, who is currently serving a prison term after pleading guilty to federal charges, came to acquire the land and the circumstances behind the request by Odell, Smith and Schmitt that the land and public money given to the foundation be returned and back taxes for sewer and water improvements be paid.

After a tax foreclosure proceeding in 1999, the Putnam County Legislature decided to sell a 43-acre parcel of land assessed at $300,000 next to the Putnam Hospital Center in order to recoup $180,000 in back taxes.

Two purchase offers came in for the 43 acres: one from the PCF, offering to purchase the land for $150,000 with a promise to develop senior housing on the property and another offer that was ultimately rejected from a private entity to purchase the land for $360,000.

In 2001, the Putnam County Legislature approved the sale of the land to PCCF for $150,000.

“Despite the intention to restrict the use of the property for senior housing there was never a contract for sale, reversionary clause or deed restriction included in the deed to protect the Putnam County taxpayer,” the statement read.

Soon after, the PCF contracted to connect to sewer and water systems at a cost of $207,000 that was never paid for and was passed along to taxpayers.

In 2006, then State Senator Leibell secured a member item grant of $1.1 million that was given to the Putnam Hospital Center to purchase seven acres from PCF to build a parking lot.

Included in the agreement to purchase this seven acres, the Putnam Hospital Center secured the first right of refusal on the purchase of additional acreage from the parcel, as well as the right to control the easement to access the remaining acreage.

The New York State Dormitory Authority also gave the PCF $1.8 million in order to make infrastructure improvements to the property.

The statement from Odell, Smith and Schmitt said that in selling half of the remaining parcel to the Putnam Hospital Center that the PCF has abandoned its plan to build senior housing, and as such, has defaulted on the grant from the state’s dormitory authority and should pay back the $1.8 million already received from the state.

“The remaining portion of the property should be returned back to the people with free and clear access…so that the property can be marketed for economic growth,” the statement read, including the estimation that, over the past decade, the original 43 acres would have generated more than half of a million dollars in property taxes if it had been sold to a private entity and even more had it been commercially developed.

President of the Putnam Community Foundation Joseph DiVestea said that the PCF will use proceeds from the sale of the land to pay the estimated $200,000 owed for the water and sewer hook-ups and that the PCF intends to use the remainder of the proceeds to continue with its plan to build senior housing on the remaining 16 acres.

“The Putnam Community Foundation Board has spent countless hours trying to work with some County leaders to come up with the best solution for the Stoneleigh Avenue site for the Putnam County community.  During our conversations and meetings…, the Putnam Hospital Center approached the Foundation over the summer to see if there was a chance to buy all or part of the property with the understanding that we were still working with senior housing partners.  The Foundation considered this an ideal opportunity to compromise with local County officials.  The Hospital would have future expansion capabilities, and we would pursue senior housing with a stronger balance sheet and the ability to better weather political and economic pressure,” a statement from the PCF read regarding the sale of land. “We then entered a period of due diligence on the property but also kept meeting with County officials to hear their ideas.  The results were as follows: the Hospital brought a concrete deal based on their findings to the Foundation, while County officials could provide only vague ideas without any specific plan; therefore, the Foundation followed the path to sell 18 acres of the total 36 acres to the Hospital.”

Divestea said PCF would answer any questions the NYS Dormitory Authority had regarding the future development of senior housing on the site.

In a follow-up interview, County Executive Odell said the 18 acres that remain after the sale to the Putnam Hospital Center should be given back to the county, along with an amendment to the rights over the easement so as to make the property marketable to potential buyers, who could then commercially develop the property, adding value to local tax rolls and creating jobs.