East Haven Fights Its Biggest-Ever Property-Assessment Battle

A multi-million-dollar dispute between the town and a landlord is being refereed in a court of law. In the boxing ring is East Haven versus the commercial property owner of 75 Frontage Road. A judgment is expected in a couple of months.

For Town Assessor Mike Milici, this is the heavyweight of all disputed property assessments he’s seen in his 21 years on the job.

The gloves are flying over the value of the four buildings at 75 Frontage, which includes Wendy’s, the now-defunct King Buffet restaurant, Winners gambling parlor, AutoZone and Gelvani Wine & Liquor. The town gave it a market value of $5.2 million, while the landlord claims it’s worth $3.4 million.

“It’s the biggest value-wise trial that we’ve actually gone the distance with since I’ve been here,” said. Milici. “There was such a vast difference between the two (assessment) numbers, even splitting (the difference) there was no way I could justify it.”

Attorney David Weiss, of Cohen & Acampora at 8 Frontage Road, is representing the property owner, East Haven Associates (EHA) of Philadelphia, Penn. The town has New Haven lawyer Hugh Keefe in its corner.

“Our claim is the property is overvalued,” Weiss said during a brief phone interview. “I’m not going to make any comments about the facts of the case.” EHA could not be reached for comment.

Weiss is suing to be reimbursed $107,361 in alleged tax overpayments for 2008, 2009 and 2010, plus legal fees and other expenses.

The case was heard in New Haven Superior Court on March 10. Milici said the verdict should be rendered in about two months.

According to the court transcript, Weiss called the town’s $5,180,000 appraisal  “grossly excessive, disproportionate, and unlawful.“

But Keefe said EHA’s appraiser, Thomas Merola of Centerbrook, submitted a flawed assessment. For one thing, Keefe said Merola didn‘t measure the property.

“We thought there were some defects (in the assessment) and we brought those out systematically and we hope the arguments” were convincing, said Keefe.

Milici said Keefe artfully delivered some swift blows to Merola’s appraisal in court and he was mighty impressed.

“I have to say Hugh Keefe did a masterful job of picking apart the appraiser and appraisal like a chicken,” said Milici. “Keefe took the appraiser to task for not measuring the property. He made him look pretty foolish on that one.”

Milici said when the March 10 hearing concluded, the judge remarked she didn’t find Merola “credible. I’m quite confident we’re going to be fine.”

Backdrop and math

75 Frontage was valued at $10 million in 2006, the year of the town’s last revaluation, said Milici. In 2008, EHA sold roughly half the property to Home Depot, in the spot where a K-Mart once stood. EHA’s portion was given a market value of $5,180,000; Home Depot, $12.9 million.

Claiming the town inflated the worth of its real estate, EHA grieved to the town Board of Assessment Appeals in ‘06, but got no relief, said Milici. Two months later, the Philadelphia concern filed a court appeal.

EHA claims it overpaid a total of $107,361 in its 2008, 2009 and 2010 tax bills. Taxes are based on the assessed value, which is 70 percent of the market price.

The town appraised 75 Frontage at $5.18 million in 2006; the assessed value was $3,656,300. That went on the 2006 grand list which affected tax rates starting in fiscal year 2008.

In 2008, EHA was taxed $83,546; in 2009, $98,135; and in 2010, $107,821 (the amount increased along with the mill rate).

According to EHA appraiser Merola, the 2006 assessed value should have been $2,380,000. The taxes would then have been $54,383 in 2008; $63,879 in 2009; and $63,879 in 2010.

That’s a difference of $107,361. Since EHA has paid the appealed tax bills, which would include the alleged overpayments, no money would transpire if East Haven prevails.

Keefe said he's put a lot of time into the case and his clock's still ticking. Town Finance Director Tom Thompson was unavailable Wednesday to comment on how much Keefe has so far charged for the EHA case.