Tax settlement over former Dowling College campus creates path for talks about Oakdale property's future
The owner of the former Dowling College in Oakdale and the Town of Islip reached a settlement on Dec. 19 in a tax dispute case. Credit: Newsday/Steve Pfost
Islip Town and the owner of the shuttered Dowling College campus have settled a long-standing tax dispute in an agreement that creates a path for discussions with the community and elected officials about the property's future.
The settlement, which State Supreme Court Justice John J. Leo signed Dec. 19, reduces tax payments on the former Oakdale campus and three smaller parcels by nearly 80%. It requires owner Mercury International to meet with Islip officials and Oakdale residents early next year to discuss redevelopment of the property.
The deal also instructs Mercury to use $250,000 from the tax grievance settlement to upgrade security and maintenance at the former campus, which has been unused since Dowling closed in 2016.
Islip officials and Oakdale residents have complained in recent years that Mercury failed to outline plans for the property and adequately care for it, even as the scenic 25-acre campus and its historic Idle Hour mansion became the targets of vandals and trespassers.
Railroad heir William K. Vanderbilt built the mansion in the early 20th century.
Oakdale community leaders and Suffolk County officials hailed the settlement Wednesday, saying it should nudge Mercury to announce long-awaited redevelopment plans.
Oakdale resident Mike Burke, 50, said he "couldn't be happier" and that the security upgrades definitely will be helpful for the community.
“I’m optimistic that now that some of these legal issues are settled, they are free to pursue something that is both prosperous for them and good for the neighborhood," he added.
Islip officials declined to comment Wednesday.
The campus' future has been in doubt since Dowling closed in 2016, following years of mounting debt and declining enrollment.
The tax dispute began shortly after Mercury and its corporate parent, NCF Capital Inc., purchased the site out of bankruptcy in 2017 for $26.1 million. Mercury now is owned by Beijing-based China Orient Asset Management Co. Ltd.
Mercury contended the college's former main campus on Idle Hour Boulevard and three smaller parcels should be exempt from town property taxes because the company intended to use it for unspecified educational purposes.
The settlement found Islip officials had over-assessed the value of the parcels for tax purposes. It cuts Mercury's current tax bill from $6.49 million to $1.35 million.
The deal directs the Suffolk comptroller's office, which collects taxes on delinquent properties, to reimburse Mercury for excess payments. That amount is not specified in court documents.
But the first $250,000 in reimbursements must be used for maintenance and security, according to the settlement, which adds that Mercury and Islip officials must discuss the exact nature of the upgrades within a month.
Mercury also must meet with Islip officials by Jan. 20 and with Oakdale residents by March 30 to discuss redevelopment plans, the settlement says.
A Mercury attorney, Sean Cronin of Mineola, said in an email that the company "looks forward to working with the town to revitalize this property."
He added that under the settlement, "the taxes will be dramatically reduced and the owners will secure and move forward with the redevelopment of the property."
Suffolk Comptroller John M. Kennedy Jr. said the settlement ends what could have been an even more prolonged legal battle.
“It was such a gorgeous property in its time and a prestigious learning institution. It should be put to good use,” Kennedy said.
He added that he'd like to see the property's future as a blend between income-producing uses and a resource for local residents, such as a community or recreation center.
Some officials and community leaders welcomed the deal but cautioned that Mercury's plans for the site remained unclear.
“What happens now?" asked David Chan, 63, president of Oakdale Civic Association.
Chan said he was pleased the settlement included language requiring Mercury to tell potential future owners that a town historic district designation protects the mansion and other structures on the property.
County Legis. Anthony Piccirillo (R-Holtsville), who earlier this year proposed that the county purchase the property and preserve it as open space, said he was pleased by the settlement.
“I think we have to take a wait-and-see attitude about what’s going to happen next," he added.
Islip Town and the owner of the shuttered Dowling College campus have settled a long-standing tax dispute in an agreement that creates a path for discussions with the community and elected officials about the property's future.
The settlement, which State Supreme Court Justice John J. Leo signed Dec. 19, reduces tax payments on the former Oakdale campus and three smaller parcels by nearly 80%. It requires owner Mercury International to meet with Islip officials and Oakdale residents early next year to discuss redevelopment of the property.
The deal also instructs Mercury to use $250,000 from the tax grievance settlement to upgrade security and maintenance at the former campus, which has been unused since Dowling closed in 2016.
Islip officials and Oakdale residents have complained in recent years that Mercury failed to outline plans for the property and adequately care for it, even as the scenic 25-acre campus and its historic Idle Hour mansion became the targets of vandals and trespassers.
-Islip and the owners of the former Dowling College campus have settled a tax dispute.
-The settlement reduces tax payments by nearly 80%.
-It also paves the way for talks about the property's redevelopment.
Railroad heir William K. Vanderbilt built the mansion in the early 20th century.
Oakdale community leaders and Suffolk County officials hailed the settlement Wednesday, saying it should nudge Mercury to announce long-awaited redevelopment plans.
Oakdale resident Mike Burke, 50, said he "couldn't be happier" and that the security upgrades definitely will be helpful for the community.
“I’m optimistic that now that some of these legal issues are settled, they are free to pursue something that is both prosperous for them and good for the neighborhood," he added.
Islip officials declined to comment Wednesday.
The campus' future has been in doubt since Dowling closed in 2016, following years of mounting debt and declining enrollment.
The tax dispute began shortly after Mercury and its corporate parent, NCF Capital Inc., purchased the site out of bankruptcy in 2017 for $26.1 million. Mercury now is owned by Beijing-based China Orient Asset Management Co. Ltd.
Mercury contended the college's former main campus on Idle Hour Boulevard and three smaller parcels should be exempt from town property taxes because the company intended to use it for unspecified educational purposes.
The settlement found Islip officials had over-assessed the value of the parcels for tax purposes. It cuts Mercury's current tax bill from $6.49 million to $1.35 million.
The deal directs the Suffolk comptroller's office, which collects taxes on delinquent properties, to reimburse Mercury for excess payments. That amount is not specified in court documents.
But the first $250,000 in reimbursements must be used for maintenance and security, according to the settlement, which adds that Mercury and Islip officials must discuss the exact nature of the upgrades within a month.
Mercury also must meet with Islip officials by Jan. 20 and with Oakdale residents by March 30 to discuss redevelopment plans, the settlement says.
A Mercury attorney, Sean Cronin of Mineola, said in an email that the company "looks forward to working with the town to revitalize this property."
He added that under the settlement, "the taxes will be dramatically reduced and the owners will secure and move forward with the redevelopment of the property."
Suffolk Comptroller John M. Kennedy Jr. said the settlement ends what could have been an even more prolonged legal battle.
“It was such a gorgeous property in its time and a prestigious learning institution. It should be put to good use,” Kennedy said.
He added that he'd like to see the property's future as a blend between income-producing uses and a resource for local residents, such as a community or recreation center.
Some officials and community leaders welcomed the deal but cautioned that Mercury's plans for the site remained unclear.
“What happens now?" asked David Chan, 63, president of Oakdale Civic Association.
Chan said he was pleased the settlement included language requiring Mercury to tell potential future owners that a town historic district designation protects the mansion and other structures on the property.
County Legis. Anthony Piccirillo (R-Holtsville), who earlier this year proposed that the county purchase the property and preserve it as open space, said he was pleased by the settlement.
“I think we have to take a wait-and-see attitude about what’s going to happen next," he added.
