County Legislators:
In May of this year, you voted to approve a lease with Butterfield Realty, LLC for a 6,000 sq ft facility in the Lahey Pavilion in Cold Spring. The use of the space is poorly defined in the lease. The terms will bind Putnam County taxpayers to poor business terms for which we will be financially liable for at least 15 years.

Similar to the now-scrapped Roger Ailes donation agreement, the lease with Butterfield seems to be intentionally withheld from public scrutiny. And, like the donation agreement, the full costs, financial risks, and potential liabilities of the lease to Putnam County taxpayers are unknown to us, your constituents. Thanks to the Journal News, we’ve gleaned information from a draft of the lease they recently published. We have concerns we hope you will address and resolve in public before any action is taken on the latest version of the lease.

The lease terms we have seen require taxpayers pay the landlord no less than $3 million—over $16,000 per month—over its 15-year term. This is no less than $3 million for single-use facility that isn’t yet built. That monthly price includes:

1.  $6,475 per month in rent, set to increase 2% every year;

2.  $4,475 per month in common area maintenance charges that can increase 3.5% every year;

3.  52% of the County property taxes on the entire 7 acres of the Butterfield property—even though less than 2% of the property will be dedicated to County programming.

Once again, as with the Ailes donation agreement, the Legislature seems to be representing private interests over those of taxpayers. Once again, taxpayers are left to doubt our Legislators’ representation of our interests—the interests you were elected to protect.

This lease should contain business terms that reflect best practices in representing the taxpayers of Putnam County. The following should be included to best protect the taxpayers and our investment:

a.     a shorter term with no penalty for early termination;

b.     no use restrictions or obligations on the leased space;

c.     a share of property taxes proportionate to the amount of space to be used by the County;

d.     a lower rental price, lower maintenance costs and lower administration fee;

e.     the right to audit actual maintenance charges and expenses; as well as a prescribed process for disputing them;

f.      appropriate reimbursement to the taxpayers for labor and materials spent improving the property, such as windows and doors in the Lahey Pavilion—permanent installations that will be owned by the landlord, not the people of Putnam County.

g.     an option for ‘rent-to-own’ that ensures taxpayers are not forced to “buy-back”—or pay twice—for renovations or services we pay for in fitting out and operating the space;

h.     a limitation of liability for public services like water and sewer connections on the private property—costs taxpayers will be on the hook for under this lease.

Taxpayers must have a say in the terms of this lease—the Legislators negotiate it in our names.  You, as our representatives, should ensure the lease conforms to business and legal standards that protect the taxpayer first.

We ask you to deliver on your promises to the taxpayers and deliver a vibrant amenity that will serve the Philipstown community for generations. We call upon the Legislature to provide the taxpayers with a well-defined plan for this facility. Years ago this 6,000 sq ft facility was envisioned as home to multiple County offices; only 2,500 sq ft of which was anticipated for use by the Senior Center, which currently occupies the aging and outgrown 1,800 sq ft American Legion Hall.

We need the Legislature to justify the expense of this space and its lease-restricted use. The plan should describe the specific services and programs to be offered in this new public facility, and provide a more inclusive definition of those entitled to use it. The plan should intelligently analyze average users and demonstrated needs. All of this information should have been prepared in collaboration with the community of Philipstown years ago, and it should be driving the formation of a lease and site renovation.

Without meaningful data and analysis, we have only an expensive and risky proposition that has not been justified to the taxpayers.

We taxpayers call upon the County Legislature and Executive for greater transparency, responsibility, and integrity. We ask that the Legislature make the lease for space at Butterfield available for public scrutiny and public comment prior to taking any further action.

Signed,
Putnam County Taxpayers for Transparency and Integrity