There has been a project that the politicians in the Rochester, NY area have been pushing for 5 years now. As part of this project it was announced multiple private properties would be taken using eminent domain laws. 5 years ago, the building which were occupied and had rent paying tenants, now the tenants have all left and the owners of the building owe property taxes that they can’t pay due to the loss of tenants. The owners wanted to sell but nobody would buy the buildings at market prices knowing that the government was going to take them eventually.
Here is the full article
Pittsford couple desperate for payday from vacant RenSquare properties
Edwin Cohen has been a member of Rochester’s downtown real estate scene for about five decades, planning a retirement around his investments.
Now in failing health, Cohen finds his retirement dreams on hold.
His last four investment properties are at East Main Street and North Clinton Avenue and slated to be condemned to make way for Renaissance Square.
Cohen, 82, would be a willing seller, but the project’s delays since it was announced with great fanfare in early 2004 have prompted his tenants to leave, drying up income from the buildings.
He and his wife, Phyllis, are now struggling to get by, waiting for a payday that has thus far eluded them.
Now, that payday will yield far less than originally hoped.
The loss of rental income from the buildings has caused Cohen to fall behind in his taxes. The county sold its liens on the properties to American Tax Funding Services, an action the county took knowingly, said County Attorney Daniel DeLaus. The city worked out a payment agreement for back taxes with Cohen, but he has not fulfilled it, and the city is preparing to sell its liens on the properties to the same company at the end of the month, said City Treasurer Charles Benincasa.
The back taxes, more than $322,366, must be paid back once the buildings are purchased for Renaissance Square.
A price for the buildings hasn’t been agreed on between project planners and Cohen, but the couple’s lawyer said he would press to make sure they are compensated for the building’s value before the project was announced. American Tax Funding Services is not interested in owning property, and tax liens do not prevent the owners from selling and can be paid at closing, said Vice President Tadgh Macaulay.
Edwin Cohen’s parcels — at 170-172 E. Main St., 186 E. Main St., 190-194 E. Main St. and 9-17 N. Clinton — are now assessed at $675,000, according to city records. American Tax Funding is owed about $15,366 in unpaid taxes and the city is owed more than $307,000.
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The reason this project has taken so long is that the local government announced the wish for this project long before any money at any level of government had been allocated. Then the local officials looked to the federal government for funding, since the local politicians will actually never try to pay for something with local money, the money always has to come for the federal government. This is a major problem with America today, local governments are dependent on the federal government for funding of local projects. What value will a new local bus terminal and local community college campus have on the nation as a whole.
This project and every other project around the country like it should be 100% funded by the local government and not the federal government. If the local leaders think it is that necessary for the betterment of the local way of life then let’s pay for it ourselves.
The problem with the project is most of the local people think it will be a colossal waste of money, just like our local fast ferry project was a few years ago.
Any fan of “The Simpson” TV show will know this reference, the local fast ferry was our version of the Springfield monorail.
Thanks to the heavy hand of government two people’s live have been pretty much been destroyed. I am sure similar scenarios are playing out all across America. This is a shame and why people mistrust government.
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