New York Supreme Court Allows Lost PILOT Action Against Non-Municipal Defendants

The New York Supreme Court granted a motion to dismiss a petition by the Farmingdale Union Free School District (School District) against the Town of Babylon (Town) and Town of Babylon Industrial Development Agency (TOBIDA) for money damages for lost payments in lieu of taxes (PILOT), while converting the proceeding to a plenary complaint against the remaining taxpayer defendants. The TOBIDA terminated certain PILOT agreements without informing the School District, which sued for the lost non-tax revenue. The Court ruled that the Town and TOBIDA were immune from the action because they did not receive PILOT payments. The Court ruled ...