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News · Suffolk County

Shoreham Land Sale Forces Budget Review for Local School and Fire Districts

New York State's purchase of 750 acres from National Grid for $28.25 million removes a key source of tax revenue from the local tax base.

By Hugo Cook ·

Illustration for: Shoreham Land Sale Forces Budget Review for Local School and Fire Districts
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The transfer of 750 acres of property in Suffolk County from a private utility to the state government has triggered a financial review for local public services. The New York State Department of Environmental Conservation completed the purchase from National Grid on Oct. 1 for $28.25 million. While the transaction secures conservation goals, it removes National Grid from the local tax roll, creating a potential revenue gap for the Shoreham-Wading River School District and the Rocky Point Fire District.

National Grid has owned the site since 2007 following its acquisition of KeySpan. The company paid taxes on the land for the full year through Nov. 30. The land includes 100-foot high bluffs, rare pine barrens, and 40 acres of tidal marshes. The state's acquisition is part of the governor's 30x30 initiative, which aims to protect 30% of the state's land and waters by 2030.

Local leaders are currently assessing the fiscal impact of the sale. Gerard Poole, superintendent of the Shoreham-Wading River School District, stated that the district is in the early stages of gathering information from state and county officials. Poole said the district does not yet know the financial impacts the transaction will have on the local tax base or the school budget. He emphasized that the top priority is to ensure the transfer does not unfairly burden residents.

Suffolk County Executive Ed Romaine, a Republican, acknowledged the loss of revenue from the taxable land. He expressed hope that the state would work to reduce the revenue loss over a period of years rather than allowing the communities to feel the full impact immediately. State Senator Anthony Palumbo, also a Republican running for reelection next week, said his office is in contact with town and school officials to determine the exact impact on the tax levy. Palumbo plans to introduce legislation to hold the school, fire department, and town harmless in perpetuity through state payments.

The State Office of Real Property Taxation Services will determine the taxability of the land in the coming months. A Department of Environmental Conservation spokeswoman noted that certain lands may remain taxable due to their location or classification. National Grid will continue paying taxes on other land and infrastructure it retained in the area.

The department is currently developing a Unit Management Plan for the site, which includes an inventory of natural resources and identifies restoration needs. Staff are also assessing suitable locations for trails and parking. The Region One Environmental Education program may offer field trips to the property if requested by school groups. The land will provide expanded recreational opportunities, including beach access and multiuse trails.

Environmental groups and local politicians have supported the purchase. Adrienne Esposito, executive director of Citizens Campaign for the Environment, called the protection of 750 contiguous acres a cause to celebrate on a densely populated island. John Turner, co-founder of the Long Island Pine Barrens Society Board, described the acquisition as a gift to all Long Islanders.

Source: TBR News Media

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