An attorney for the company that owns the tax-delinquent Riverpark Medical and Dental Center on River Road in North Tonawanda on Tuesday asked the city council a “difficult” question.
That is, to waive half of the roughly $30,000 in back taxes the firm owes the city.
“The building is a viable building,” said Attorney Arc J. Petricca. “It serves patients from the city and surrounding (areas).”
Petricca said his other job as a city attorney in Lackawanna means he understands how reluctant council members likely are to oblige his client’s request.
“It’s an awful assignment and very difficult for a council person to consider that,” he said after insisting that, “I think it would be good for the city to continue that building as a medical center.”
He said there are unfortunate, even tragic circumstances that hobbled the business and that may warrant consideration of financial leniency. For instance, local physician Dr. Robert Reszel, whose practice had been the primary fixture at the location, suffered a disabling stroke prior to the business’ first missed payments that were part of a special payment in lieu of taxes agreement administered through Niagara County a couple of years ago.
“As a result of that several of the practices that surrounded him, one by one, moved out of the building,” Petricca said.
The building is now home to three businesses, of a total of eight available suites: Kaleida blood laboratory, Dr. Reszel’s son who practices dentistry and a urologist.
The total mortgage default (aside from the payments in lieu of taxes) totals roughly $2.1 million.
Petricca is not asking for a reduction on current taxes owed, but is requesting separately that all three taxing entities — the city, the county and the city school district — cut their figure in half so that the company can secure a bank loan to cover that figure.
The bank won’t grant the necessary loan since the back taxes are like a lien on the firm’s credit, he explained.
A judgment resulting from a June court action related to the foreclosure and brought forth by the city and school district removed roughly $230,000 in back taxes owed all three entities. Of that, the city’s portion was ruled to be a little more than $30,000.
“I’ve been in business for most of my life and for a doctor to come in here and ask for a break on a PILOT, that doesn’t sit well with me,” mayor Larry Soos said after the presentation at Tuesday’s council work session, while also making clear the council must decide.
Third-Ward Alderwoman Nancy Donovan didn’t like the sound of it, either.
“I don’t think it looks good for other businesses or practices — to make this our practice,” she said, weighing the message that would be sent if the city were to grant the request.
R.E.R. LLC had not made some $27,242 payments in lieu of taxes to which it agreed back in 1999 early this year. The amount covers the years 2007 and 2008 in terms of city tax alone.
Contact reporter Neale Gulley at 693-1000, ext. 114.
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