Shoreham Land Deal Raises Taxpayer Concerns

The state’s acquisition of 750 acres protects valuable coastal habitat, but questions remain over lost tax revenue.

New York State’s $28.25 million purchase of 750 acres surrounding the former Shoreham Nuclear Power Plant is being celebrated as a major environmental victory, but the deal raises questions about who will make up the property taxes previously paid by National Grid.

The October acquisition by the Department of Environmental Conservation protects a vast stretch of Long Island Sound coastline but potentially removes taxable property from the rolls supporting the Shoreham-Wading River School District, Rocky Point Fire District and other local jurisdictions.

Reached by the South Shore Press, Shoreham-Wading River Superintendent Gerard Poole said he is still gathering information to determine the financial consequences.

“We have a lot of requests out so I can advocate on behalf of our residents,” Poole said. “This transfer should not unfairly burden the taxpayers. We want to see if we’re eligible for payments to make the taxpayers whole.”

One possibility is securing state payments in lieu of taxes to replace revenue previously generated by the property, an arrangement supported by County Executive Ed Romaine, who suggested that payments could be spread out over a number of years.

The amount of annual tax revenue at stake remains unclear, as does whether residents could face higher property taxes to compensate for any shortfall.

The State Office of Real Property Tax Services has not yet determined whether the newly acquired property will remain taxable. Officials reported that the decision is expected in the coming months.

Shoreham taxes have been a bone of contention dating back years, when local opposition led to the closure of the facility, which was loaded with nuclear fuel but never commercially operated. During the 1980s controversy, the Long Island Lighting Company stopped paying taxes on the plant, leading to lawsuits by Brookhaven Town.

National Grid, which acquired the property through its 2007 purchase of KeySpan, paid taxes through November 30, reports show. The company indicated it will continue paying taxes on land and infrastructure it retained.

The environmental benefits of preserving the property are substantial, advocates noted. The area contains rare pine barrens, wetlands, 100-foot bluffs and approximately 40 acres of tidal marshes. Plans call for public trails, parking and beach access.

Critics of the deal argue that the land couldn’t be developed anyway and that the state expenditure wasn’t necessary.

The purchase, announced by Gov. Kathy Hochul just prior to her reelection, is part of an initiative to preserve 30% of New York’s land and waters by 2030.