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Fox Den Development Corp. v. Town of Yorktown

Citations: 231 A.D.2d 551; 647 N.Y.S.2d 34; 1996 N.Y. App. Div. LEXIS 9259

Court: Appellate Division of the Supreme Court of the State of New York; September 16, 1996; New York; State Appellate Court

Narrative Opinion Summary

This case involves an appeal concerning the legality of certain sections of the Yorktown Code, specifically addressing the imposition of a 'service connection fee' for new water users in the Yorktown Consolidated Water District. The Supreme Court of Westchester County denied the plaintiff's motion for partial summary judgment and upheld the defendant's cross motion for summary judgment, affirming the constitutionality of the contested code sections. The case arose when the Town Board adopted a provision imposing a fee of $3,000 for properties within the district and $6,000 for those outside. The plaintiff, owning lots outside the district, challenged this fee after paying $12,000 for two connections. The court found that Town Law §198 (3)(a) does not apply to out-of-district users and upheld the Town Board's authority under §198 (3)(b) to impose water usage fees on such users. The ruling emphasized the permissible fee differentiation based on district boundaries and construction cost considerations. Ultimately, the court's decision favored the defendant, affirming the legality of the fee structure and the Town Board's authority to levy these charges on out-of-district users. The judgment was concurred by Justices Mangano, P.J., Miller, Sullivan, and Florio.

Legal Issues Addressed

Application of Town Law §198

Application: The decision clarified that Town Law §198 (3)(a) does not apply to out-of-district users, while Town Law §198 (3)(b) permits fees for such users.

Reasoning: Town Law §198 (3)(a) does not apply to out-of-district users, who cannot be taxed for capital improvements while outside the district.

Authority to Impose Fees on Out-of-District Water Users

Application: The court upheld the Town Board's authority to charge higher fees to out-of-district water users, emphasizing the legal distinction between district and non-district properties.

Reasoning: The court agreed with the lower court's ruling that the plaintiff's location outside the Water District permitted the defendant to charge a higher fee.

Constitutionality of Municipal Code Sections

Application: The court affirmed the constitutionality of specific sections of the Yorktown Code, rejecting the plaintiff's claim of illegality.

Reasoning: The order is affirmed, with costs, and the matter is remitted for the entry of a judgment declaring sections 23 (B) and 24 (I) of Chapter A100A of the Code constitutional.

Cost Allocation for Water Works Construction

Application: The court considered the costs borne by district taxpayers and consumers to determine appropriate charges for out-of-district users.

Reasoning: Additionally, the costs of constructing water works for district taxpayers and consumers are relevant in determining charges for outside users.