Court upholds ruling on del Lago PILOT

The Fourth Department Appellate Division Court has upheld the August 2016 ruling by Acting State Supreme Court Judge Patrick Falvey denying a legal challenge to the Seneca County Industrial Development Agency’s payment-in-lieu-of-taxes agreement for the del Lago Resort & Casino.

The five-judge panel unanimously upheld Falvey’s ruling in a decision filed July 7.

“With respect to the first cause of action, we reject the petitioners’ contention that the resort and casino development was ineligible for IDA financial assistance because it was not a ‘project’ pursuant to General Municipal Law,” the judges wrote.


“We conclude that the broad statutory terms ‘commercial’ and ‘recreation’ within the definition of the project are ambiguous insofar as they are susceptible to conflicting interpretations. As such, the IDA’s interpretation is entitled to get deference and must be upheld as long as it is reasonable.”

On the second cause of action, the court rejected the petitioners’ contention that the IDA’s award of financial assistance to the del Lago project was arbitrary and capricious or unlawful because such assistance was unnecessary to induce the project respondents to undertake development in Seneca County.

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