By Julie Shapiro
DNAinfo Reporter/Producer
BATTERY PARK CITY — Condo owners in Battery Park City will be spared nearly $280 million in planned tax hikes over the next 30 years, thanks to a deal officials approved on Tuesday.
The Battery Park City Authority voted unanimously to ease the tax increases that were slated to hit about 2,400 residents over the next year.
"We're relieved it's finally done," said Gene Glazer, 71, a Regatta resident and leader of the Battery Park City Homeowners Coalition. "This has been a long, difficult process of negotiations."
Before the deal, the residents of 11 buildings in the neighborhood were facing sharp hikes in their ground rent, a fee that Battery Park City condo owners pay to lease the land on which their buildings are located. Condo owners are also required to pay the equivalent of city property taxes. The jump in taxes could have meant some residents' rent bills would have jumped by as much as $3600 a year.
Now, while residents will still see their ground rents increase, the amount was cut from $804 million total over the next 30 years to $525 million — a savings of about 35 percent.
Assembly Speaker Sheldon Silver, who brokered the deal, hailed its passage on Tuesday.
"Because of the agreement that was finalized today, families in Battery Park City will be able to stay in their homes and will not be hit with the crippling financial hardships they would otherwise be facing," Silver said in a statement.
"This agreement ensures that Battery Park City remains the world-class community that it is and provides the kind of stability that lenders look for when providing financing to those who wish to move into Battery Park City."
The 92-acre parcel of land dubbed Battery Park City is a political anomaly, in that it is owned by the state, not the city. A state-appointed panel oversees the running of the land, including the taxes, maintenance and other municipal responsibilities. As a result, the funds collected from Battery Park City residents take a roundabout path into city and state coffers.
The buildings affected by the deal include Hudson View East, Hudson View West, Hudson Tower, Battery Pointe, Soundings, Liberty Court, Liberty House, Liberty Terrace, Cove Club, Liberty View and Regatta. All 11 condo boards have already approved the agreement.
Glazer said the most significant part of the deal is that it cut in half the ground rent increases planned to kick in 15 years from now.
The rents were originally slated to rise to 6 percent of the market value of the land, a number that would have been astronomical in 2026, said those affiliated with the negotiations.
"That would have been catastrophic," Glazer said. Under the revised deal, the rents will only rise to an estimated 3 percent, he added.
The current ground rents are not tied to market value.
Glazer said Silver's deal provides much-desired certainty for residents who want to plan for their future expenses, and it will also help those who want to refinance their mortgages.
Battery Park City residents already pay among the highest taxes in the city. The tens of millions of dollars of excess revenue that the Battery Park City Authority collects each year is supposed to go to the city to build affordable housing, but it has also been used to fill state and city budget gaps.
