Court: Arts center owes Holmdel taxes Judges unanimously agree venue should no longer be exempt BY TOM CAIAZZA Staff Writer The New Jersey Superior Court Appellate Division upheld the state Tax Court's ruling awarding back taxes and the payment of future taxes by PNC Bank Arts Center to Holmdel. In a Sept. 5 decision, a three-judge panel ruled that the New Jersey Turnpike Authority, owners of the PNC Bank Arts Center, were not exempt from property taxes because the current operation of the facility no longer follows the spirit of the law that gave the venue its tax exemption in the first place. In Tax Court, Judge Harold A. Kuskin's decision said that as of October 1996, the Arts Center Amphitheater "operated in a manner foreign to the operation understood and contemplated by the Legislature." The decision stated that as of the tax year 1997, the amphitheater lost its tax exemption. The reception center, also located on the arts center grounds, falls into the same operational situation, as its privatization under Park Caterers and Merri-Makers shows a profitable enterprise not envisioned by the legislation that gave it its tax exemption. "Construction of the reception center appears to be exactly the type of project that the Legislature sought to control in enacting the 1968 legislation," Kuskin said in the decision. The Appellate Court agreed, ruling unanimously for the township. Township Administrator Christopher Schultz said that while it is a big win for Holmdel, it is not a completely decisive victory. "It's another step, a big step, a strong step," Schultz said. "It was a 3-0 decision. The ball is in the Turnpike Authority's court." The Turnpike Authority has the option of appealing the decision to the State Supreme Court. If they choose not to hear the case, Schultz said it would be a victory for the township, and hearings would begin on how much should be paid. "If it stops today," Schultz said, "it will now go into the Tax Court to determine the value." Holmdel Mayor Serena DiMaso has said in the past that the money the township could get in back taxes should be given back to the residents in the form of a rebate. She still feels that is a viable option. "The majority of the Township Committee feels it is a good gesture to return some money, even for one year," DiMaso said. DiMaso said that with impending decline in ratables from the closing of the Lucent/Bell Labs facility, having the arts center on the books would help with rising costs and keep the tax rate from severely hurting the residents. "To have this come back on the books would be tremendous," DiMaso said. While this is a victory for the township, the second in a year, Schultz said that it could be far from over. "Keep your fingers crossed, but it is by no means done. A lot could happen," he said.