Cook Gains Support In Power Play

Councilman Eugene Cook, pictured in front of the Northport Power Plant in May, drummed up support from his town board colleagues to research the town’s ability to acquire the plant through eminent domain.

By Connor Beach
cbeach@longislandergroup.com

The Huntington town board approved Tuesday a resolution to consider the possibility of taking over the Northport Power Plant through eminent domain.

The resolution, sponsored by Councilman Eugene Cook and seconded by Councilman Ed Smyth, instructs the town attorney and various department heads to research the procedure for eminent domain and the legality and feasibility of the town taking over the plant.

Cook previously introduced the idea of eminent domain to the town board in May, but the idea did not have enough support at the time.

“I’ve done a lot of research on this and I believe it’s the right thing to do,” Cook said.

Cook said that LIPA’s appraisal of the 243.6-acre power plant undervalues its economic output.

“After the appraisal was submitted with the lawsuit to the judge, I realized that the price they had in there was so good that we should buy this plant,” Cook said.

The Northport Power Plant is owned by National Grid and under contract to the Long Island Power Authority.

Under that contract, LIPA pays all costs to run the plant, including property taxes and provides fuel. In exchange, the utility receives all the electricity and electric market revenues.

Smyth said LIPA recently appraised the property at $193.7 million, a valuation he called an “invitation for the town to explore the condemnation of the plant because the price is so ridiculously low.”

LIPA currently pays $80 million annually in property taxes on the property based on the town’s $3.8-billion valuation.

LIPA challenged the assessment in 2010, seeking to drastically reduce the appraised value of the property and the taxes it pays on the property.

“This is the biggest financial issue the town is facing and probably has faced in its history,” Smyth said. “I don’t want to leave any stone unturned in this lawsuit.”

The town board voted 4-1 to move forward with eminent domain research. Cook and Smyth were joined by Councilwoman Joan Cergol and Supervisor Chad Lupinacci in support of the resolution, while Councilman Mark Cuthbertson was the lone no vote.

Cuthbertson said Cook does not need a resolution to ask town officials to research eminent domain, and the resolution was creating “false hope.” He argued the town should continue to work with local state representatives and the governor to find a solution.

“I believe this resolution brings grandstanding to an Olympic level, and it makes this board look foolish,” Cuthbertson said.

Northport Village deputy mayor Tom Kehoe said he supported the resolution, calling it, “another piece of the puzzle that will put a little pressure on the utility and LIPA to come to a decision that’s good for all of us.”

Huntington, the Northport school district, LIPA and National Grid are currently involved in non-binding mediation with third-party arbitrator Marty F. Scheinman. Cook said the timing of his resolution was not indicative of the progress of those talks.