Lumberland reaches deal with Alliance

LUMBERLAND, NY — Officials in Lumberland have reached a deal with Alliance Energy over the assessed value of the company’s property. When Alliance bought the four reservoirs and a lake in Sullivan County in 2006, they moved to have the assessed value of their Lumberland property reduced from $16 million to $1 million, which resulted in court action.

Lumberland supervisor John LiGreci said under the new agreement the assessment would be lowered to $6 million over the next four years, and the deal would be good for eight years. He said the reduction would mean lower tax revenue for the town as well as the Eldred Central School District, but he said the outcome was better than waging a potentially costly court battle and, perhaps, losing it. Additionally, an appraisal completed in November 2007 put the value of the property at $5.4 million. Therefore, LiGreci said the deal was good for the town.

The largest portion of the company’s holdings in the county are located in the Town of Lumberland, but a large amount are also located in the Town of Forestburgh. Smaller parts are located in the towns of Bethel and Thompson and Highland, and the Town of Deerpark in Orange County. Officials from Alliance are reportedly now negotiating with Forestburgh officials over the assessment in that town.