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Cerro v. Washington County Board of Supervisors

Citations: 247 A.D.2d 726; 669 N.Y.S.2d 385; 1998 N.Y. App. Div. LEXIS 1554

Court: Appellate Division of the Supreme Court of the State of New York; February 18, 1998; New York; State Appellate Court

Narrative Opinion Summary

In this case, the petitioner appealed a decision that dismissed his complaint about the sale of a 49-acre property by the Washington County Board of Supervisors to the Warren and Washington Counties Industrial Development Agency (IDA). The petitioner, who had submitted a lower bid, asserted that the IDA should have been disqualified due to alleged constitutional and procedural violations in the tax sale process. The Supreme Court held that an offer to purchase property does not establish a constitutional right, and found no breach of the Board's sale processes, prioritizing the highest bid. The IDA's tax-exempt status and its compliance with payment requirements guided by the County Treasurer were deemed valid. The court highlighted that procedural deviations related to tax liens are directory, not affecting title validity. The judgment was affirmed without costs, clarifying that while IDA properties are exempt from general property taxes, they are liable for special district taxes.

Legal Issues Addressed

Constitutional Rights in Property Purchase

Application: The court determined that an offer to purchase property does not establish a constitutional right, affirming the dismissal of the petitioner's complaint.

Reasoning: The Supreme Court dismissed the petition, affirming that an offer to purchase property does not establish a constitutional right.

Directory Nature of Tax Lien Provisions

Application: Provisions regarding tax liens were deemed directory rather than mandatory, not affecting the validity of the title, thereby supporting the sale's legality.

Reasoning: The court concluded that any procedural deviations did not violate statutes, reinforcing that time-sensitive provisions regarding tax liens are considered directory rather than mandatory, not affecting the validity of the title.

Payment Timeline and Procedural Compliance

Application: The court found that the IDA's payment of the bid balance was compliant, based on guidance from the County Treasurer, and any procedural deviations did not invalidate the sale.

Reasoning: Further, the court ruled that the IDA's payment of the bid balance was acceptable, as it was based on the County Treasurer's guidance regarding the payment timeline.

Procedural Adherence in Tax Sale Processes

Application: The Board's adherence to its terms of sale was not violated, emphasizing that obtaining the highest price for County property is paramount unless a clear legal violation is demonstrated.

Reasoning: It found no evidence that the Board violated its own terms of sale, noting that the Board must prioritize obtaining the highest price for County property and that a court should not intervene unless a clear legal violation is shown.

Tax-Exempt Status and Payments in Lieu of Taxes

Application: The IDA's tax-exempt status and the nature of payments as payments in lieu of taxes were upheld as valid defenses against the petitioner's claims.

Reasoning: The court emphasized that the IDA's tax-exempt status under General Municipal Law and the nature of payments owed as payments in lieu of taxes were valid defenses.