PLEASE TAKE NOTICE of the following Determination and Findings, adopted by the Town of Orangetown Town Board on July 11, 2023, pursuant to Eminent Domain Procedure Law (“EDPL”) Section 204 in connection with the proposed acquisition of the property known as the HNA Palisades Premier Conference Center / 334 Route 9W, Palisades, NY (Tax Lot 78.13-1-1) (“Property”)
Location of Proposed Project
The 106-acre parcel located in the Town’s Office Park (OP) zoning district currently known as the HNA Palisades Premier Conference Center / 334 Route 9W, Orangetown, NY (Identified on the tax map as: 78.13-1-1). This location has been selected by the Town for acquisition by exercise of eminent domain because it is a large, abandoned site with significant tax arrears in the Town that presents a significant redevelopment opportunity after being secured, and unsafe conditions are remediated and repaired.
Public Purpose and Benefit to be Served
The Property is improved with a 206-room hotel and conference center, previously used by IBM and then sold to HNA. HNA closed the facility several years ago, and the Property has been dormant since 2020. The shuttered Property has not generated significant tax revenue or other public benefits since the closure of the hotel/conference center. To the contrary, there are currently tax arrears totaling approximately $400,000 on the Property.
Since the hotel/conference center closed, various private entities have expressed an interest to the Town in redeveloping the Property. In addition, residents have expressed concern about the Property being dormant. Accordingly, the Town concluded that the Property presents a unique opportunity for a public/private partnership aimed at revitalizing, redeveloping and maximizing the currently underutilized and vacant Property for the benefit of the community. This redevelopment effort would include a use or uses that will enhance the sound growth of the Town, increasing its tax base, preserving key environmental on-site features, providing public amenities and uses, and encouraging good design standards.
In October 2022, the Town entered into the MOU with Reveil with the goal of redeveloping the Property to meet the aforementioned goals. While specific future uses or layout have not yet been identified, Reveil presented a redevelopment concept that could include improving the Property with a refurbished/rebranded hotel, a restaurant/bar, event space, a working farm/test kitchen, co-working spaces, some residential use and the preservation of open space and other public amenities. The MOU contemplated Reveil purchasing the Property, and then pursuing development approvals from the Town to carry out its vision. In the event Reveil was unable to purchase the Property with commercially reasonable effort, the parties contemplated in the MOU the Town being able to utilize its eminent domain authority to acquire the Property for redevelopment.
Despite Reveil’s good faith efforts and negotiations with HNA since executing the MOU, including Reveil executing the PSA and depositing $600,000 in escrow, HNA has failed to release a signed version of the PSA. As such, the purchase and sale contemplated in the MOU to facilitate redevelopment of the Property has not been consummated for almost two years.
During this time, conditions at the Property have worsened. Utilities have been shut off, and a series of mechanical failures have occurred in the buildings. In November 2021, a mechanical failure led to petroleum spilling into the wastewater system at the Property, eventually discharging into the Town’s WWTP. In January and February 2022, the Town Fire Department responding to alarms triggered due to burst pipes discovered multiple sinkholes on access roads, making emergency access to the Property treacherous or impossible. Fire hydrants were also observed leaking and unusable. In addition, a series of break-ins, burglaries and vandalism events have occurred at the Property, including property damage, graffiti and multiple reports of illegal dumping of construction and demolition debris.
Given the apparent stagnation of the PSA execution and the aforementioned public health and safety hazards identified at the Property, the Town has concluded that acquiring the Property in order to secure the Property and remediate the on-going damage, as well as facilitate its redevelopment will serve a public purpose.
General Effect on the Environment and Town Residents / SEQRA Compliance
The Town Board has reviewed the Environmental Assessment Forms (EAF) in the Record prepared for the action being considered by the Town Board – i.e., the acquisition of the Property through eminent domain. The Town Board, as the sole agency with approval authority over the action (the lead agency), classified the action as a Type I action, and issued a Negative Declaration on July 11, 2023. The Town Board finds, for the purposes set forth in the Negative Declaration, that the acquisition of the Property would not result in any significant adverse environmental impacts. Nor will the acquisition result in any significant adverse impacts upon Town residents. Rather, the acquisition would produce several benefits to the community, including being able to secure the Property, resolve on-going safety concerns, and potentially facilitate redevelopment.
Other Relevant Factors
Three public hearings were conducted prior to the Town Board issuing this Determination and Findings. Notice was provided to the Property owner, as well as the Property owner’s attorney. The Property owner did not appear or otherwise present any objections to the Town acquiring the Property through eminent domain, or question the public purpose of such acquisition.
A handful of Town residents did appear at the public hearings, none of whom expressed any objections. The residents corroborated the Town Board’s view that the current state of the Property is problematic, and a desire to see redevelopment. As one speaker put it, redevelopment of the Property can “serve Orangetown in many ways as far as revenue, taxes and all that stuff.” Another commented that the community wants the Property “to go in the right direction and paying property taxes, sales taxes and all of those wonderful things that help everybody.” Others expressed similar support for using eminent domain to facilitate redevelopment at the Property.
Determination and Findings
Based upon due consideration of the Record and the foregoing, it is determined that the Town Board should exercise its authority of eminent domain to acquire the above-described Property because said acquisition would further various public purposes and benefits.
Copies of this Determination and Findings by the Town are available and will be forwarded without cost and upon request, by writing to the Town Clerk.
ATTENTION: ANY PERSON WHO WISHES TO SEEK JUDICIAL REVIEW OF THIS DETERMINATION AND FINDINGS, OR WHO CLAIMS TO BE AGGRIEVED BY SUCH DETERMINATION AND FINDINGS AND WISHES TO CHALLENGE THE SAME, MUST DO SO, IF AT ALL, (1) BY, PURSUANT TO EDPL SECTIONS 207 AND 208, DULY COMMENCING A LEGAL PROCEEDING IN THE N.Y. STATE APPELLATE DIVISION, SECOND DEPARTMENT, 45 MONROE PLACE, BROOKLYN, NEW YORK, 11202, NO LATER THAN THIRTY DAYS AFTER THE SECOND PUBLICATION OF THIS NOTICE IN THE OFFICAL NEWSPAER OF THE TOWN, OTHERWISE ANY SUCH CHALLENGE OR JUDICIAL REVIEW MAY BE TIME BARRED, AND (2) BY DULY SERVING A DEMAND UPON THE TOWN TO FILE THE RECORD UNDERLYING THIS DETERMINATION AND FINDINGS. THE APPELLATE DIVISION MAY CONSIDER THE PUBLIC USE, BENEFIT OR PURPOSE TO BE SERVED BY THE PROPOSED ACQUISITION AND OTHER MATTERS SET FORTH IN NEW YORK EMINENT DOMAIN PROCEDURE LAW SECTION 207. ANYONE WISHING TO CHALLENGE THIS DETERMINATION AND FINDINGS IS ADVISED TO CONSULT AN ATTORNEY PROMPTLY.