Watson settles assessment challenge

WATSON — The town of Watson has reached a rapid out-of-court settlement with Erie Boulevard Hydropower on its assessment challenge.

"We brought it in line," said Raymond A. Meier, Watson's town attorney. "This was really the correction of an error more than anything."

The assessed value of Erie Boulevard's 216-acre hydroelectric facility on Beaver River will be reduced from $10,772,000 to $8 million. That's a 25.7 percent decrease.

In a state Supreme Court lawsuit filed in July by Syracuse attorney Karla M. Corpus, the company sought to have its assessment lowered to $7 million.

The property was assessed at $8.34 million in 2007 and $7.7 million in 2008, according to Lewis County tax records.

The state Office of Real Property Tax Services each year typically provides a suggested assessment range for unusual properties like hydroelectric facilities, Mr. Meier said.

In past years, an Erie Boulevard official always has visited the town assessor prior to completion of the tax roll to discuss the state's suggested values and reach a suitable compromise figure, he said.

However, that person retired this year, nobody else from the company checked with the town and the assessment was set with no input, Mr. Meier said.

Once the lawsuit was filed, both sides worked quickly to reach a compromise assessed value, allowing for correct billing of county and town taxes in January, he said.

The Beaver River Central School District will need to refund the company for its September tax bill.

While the exact amount has not been determined, district officials are projecting a payback of about $27,000, said District Superintendent Leueen Smithling.

While money was included in the 2009-10 budget for refunds, this settlement will likely "max out what we've allotted," Mrs. Smithling said.