Large office building owes over $10 million in back property taxes


TOWN OF ULSTER – Property at 701 Grant Avenue in the Town of Ulster that once housed IBM offices owes more than $10.1 million in back taxes and penalties and Ulster County has not taken any action to foreclose on it since it was eligible to do so in 2013.

County Comptroller March Gallagher said the delinquent taxes could be going toward county services.

“Our finding is the county had no reason not to foreclose. The property really does not have environmental concerns and the fact that the property owners were challenging the tax assessment during certain periods is not sufficient grounds for not foreclosing on the property,” she said in a just-released report.

A 301,000-square-foot office building remains on the property owned by Ulster Acquisitions 1 LLC. 

No real property taxes have been paid on the land since 2010.

County Legislature Chairwoman Tracey Bartels said she agrees “without hesitation” that the property should be foreclosed on immediately.

County Executive Pat Ryan agrees. “We successfully foreclosed on the former TechCity site, and we are now in the process of engaging the tenants and proceeding with foreclosure on the 701 Grant property.”

Bartels said the county legislature will draft a “comprehensive policy regarding tax foreclosure eligible properties including a process whereby properties are recommended for removal; notification to the legislature of said removal; a comprehensive disposition plan for properties acquired through the ‘in rem’ delinquent tax lien foreclosure process; and related policies to respond to the complex housing needs in our county.”

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