After years of litigation and a recent Appellate Division decision regarding assessed values and local property taxes, a settlement that resolves the remaining issues in the longstanding dispute among The Osborn, the City of Rye, and the Rye City School District has been reached that ultimately benefits all of the parties and their constituencies.

Originally, the matter focused on tax assessments made by the Assessor of the City of Rye dating to 1997.  The Osborn sought to continue its exemption from real estate taxes that dated back to its opening in 1908 or alternatively, to reduce the assessed value attributed to the property.  The State Appellate Division ruled in October of this year that The Osborn is fully taxable, yet entitled to a one-third reduction in the assessed value of its property.  This decision provided the foundation for the three local partners to work together in resolution.

"The Osborn sought relief for our residents and fair treatment for all of the local taxpayers.  By working cooperatively we have achieved a fair resolution and closure," said Jack Miller, the Chairman of the Board of The Osborn.  "As a non-profit entity that is also the largest taxpayer in the City of Rye, we recognize the importance of our role as protector of our elderly residents and our responsibility to be a good neighbor, and are satisfied with the resolution."

A written settlement, guided by calculations determined by the State Supreme Court, was necessitated by the complex nature of the issue due to changes in tax status and assessments during the time of the litigation and recent court rulings.  For certain periods of time The Osborn was due a refund by the City and the School District, while for others, it owed a refund to the School District.  The final settlement in reconciling the balances calls for a refund by the City of slightly more than $1.3 million to The Osborn, and a refund by The Osborn to the School District of slightly more than $1 million.

While the court only addressed the disputes through 2003, the parties settled all outstanding issues, including pending lawsuits for each year from 2004-2010.

"The Board of Education is pleased to have worked out a fair settlement, guided by the courts, that finally puts this matter to rest," noted Board of Education President Joshua C. Nathan.  "But the most important result is the positive relationship among the School District, the City, and The Osborn, as we work together in the interest of students, residents and taxpayers."

"The community is the big winner here," said Mayor Douglas French of the City of Rye.  "This is a positive step all the way around not only in terms of tax revenues for important School and City services, but the possibilities of what a good relationship can bring in the future," concluded Mayor French.

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