Chobani takes towns and schools to court to reduce taxes by $13 million
CHENANGO COUNTY – After receiving its tax assessment in 2013, Chobani is asking for over 50 percent off in tax reductions for its properties in Norwich and Columbus, totaling a $13 million difference in property value.
In a letter sent to the Columbus Town Board dated September 26, 2017, Chobani Senior Vice President of Corporate Affairs Michael Gonda wrote, “As you are aware, it recently became clear to us that the property-tax valuation set for our facilities is outdated and, we believe, inflated.”
Gonda wrote the letter in response to the $27.24 million dollar assessment by the Town of Columbus tax assessor in 2013. Court records indicate Chobani is petitioning to have its properties in Columbus reassessed down to $17.5 million.
The letter did not address Chobani’s Norwich property reassessment, but court records show the company is requesting around an 80 percent reduction, from $4.9 million dollars to $1.03 million dollars.
“Chobani is already enrolled in a 10-year tax abatement, which reduces the company’s taxes by 50 percent,” said Town of Columbus Supervisor Thomas Grace.
Grace said the property was assessed in 2013 and only after receiving a mortgage of $27.5 million dollars on January, 2017, was the petition for a tax reduction to $17.5 million dollars filed.
In the letter, Gonda indicated that harm to the company’s growth could impact the benefits it offers to the local community.
“As any individual, household or company would, we raised this issue with the relevant parties and have petitioned for a revised assessment of our facilities...What is different from most households, individuals or companies, however, is that our growth is inextricably tied to and benefits our local community,” he wrote.
Chobani has recently been exploring an expansion of the Columbus facility, but has declined to comment on specific details of the potential project, or how it might be affected by the ongoing assessment dispute.
According to Grace, the outcome of the potential reassessment will have a significant impact on the region.
“Chenango County, two towns, two fire districts, two libraries, and two school districts stand to lose much if Chobani prevails in both cases,” said Grace.
He added that both the Unadilla Valley School District and the Norwich School District have offered their support to the towns in the upcoming legal battles.
Unadilla Valley School District Superintendent Robert Mackey confirmed the district’s involvement in the reassessment case.
“After reviewing the financial impact to the school and discussing potential strategies with the school attorney, we’ve decided to get involved and defend Columbus’s assessment,” he said.
Mackey spoke on the issue during a school board hearing, where he said if the assessment is lowered, the school district would be protected by state financial aid.
Norwich City School District Deputy Superintendent Robert Wightman also spoke about his school’s involvement in the reassessment, and its potential impact on the community.
“What happens is, if [the Chobani assessment] is reduced, then the tax burden gets shouldered by everyone else in the community,” Wightman said.
According to Wightman, in the event the Chobani reassessments are granted, Norwich City School District would lose approximately $118,000 from the deal.
Norwich Town Board Deputy Supervisor Charles Brooks, who is heading the Chobani reassessment for the town would not comment.
– Evening Sun Editor Tyler Murphy also contributed to this story.
Pictured: Chobani takes local towns and schools to court to reduce taxes by $13 million. (Zach Meseck Photo)
In a letter sent to the Columbus Town Board dated September 26, 2017, Chobani Senior Vice President of Corporate Affairs Michael Gonda wrote, “As you are aware, it recently became clear to us that the property-tax valuation set for our facilities is outdated and, we believe, inflated.”
Gonda wrote the letter in response to the $27.24 million dollar assessment by the Town of Columbus tax assessor in 2013. Court records indicate Chobani is petitioning to have its properties in Columbus reassessed down to $17.5 million.
The letter did not address Chobani’s Norwich property reassessment, but court records show the company is requesting around an 80 percent reduction, from $4.9 million dollars to $1.03 million dollars.
“Chobani is already enrolled in a 10-year tax abatement, which reduces the company’s taxes by 50 percent,” said Town of Columbus Supervisor Thomas Grace.
Grace said the property was assessed in 2013 and only after receiving a mortgage of $27.5 million dollars on January, 2017, was the petition for a tax reduction to $17.5 million dollars filed.
In the letter, Gonda indicated that harm to the company’s growth could impact the benefits it offers to the local community.
“As any individual, household or company would, we raised this issue with the relevant parties and have petitioned for a revised assessment of our facilities...What is different from most households, individuals or companies, however, is that our growth is inextricably tied to and benefits our local community,” he wrote.
Chobani has recently been exploring an expansion of the Columbus facility, but has declined to comment on specific details of the potential project, or how it might be affected by the ongoing assessment dispute.
According to Grace, the outcome of the potential reassessment will have a significant impact on the region.
“Chenango County, two towns, two fire districts, two libraries, and two school districts stand to lose much if Chobani prevails in both cases,” said Grace.
He added that both the Unadilla Valley School District and the Norwich School District have offered their support to the towns in the upcoming legal battles.
Unadilla Valley School District Superintendent Robert Mackey confirmed the district’s involvement in the reassessment case.
“After reviewing the financial impact to the school and discussing potential strategies with the school attorney, we’ve decided to get involved and defend Columbus’s assessment,” he said.
Mackey spoke on the issue during a school board hearing, where he said if the assessment is lowered, the school district would be protected by state financial aid.
Norwich City School District Deputy Superintendent Robert Wightman also spoke about his school’s involvement in the reassessment, and its potential impact on the community.
“What happens is, if [the Chobani assessment] is reduced, then the tax burden gets shouldered by everyone else in the community,” Wightman said.
According to Wightman, in the event the Chobani reassessments are granted, Norwich City School District would lose approximately $118,000 from the deal.
Norwich Town Board Deputy Supervisor Charles Brooks, who is heading the Chobani reassessment for the town would not comment.
– Evening Sun Editor Tyler Murphy also contributed to this story.
Pictured: Chobani takes local towns and schools to court to reduce taxes by $13 million. (Zach Meseck Photo)
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