TAX REVOLT FIREWORKS, P.2

In the main part of the meeting Commissioner Frankel gave a Power Point presentation for approximately 90 minutes, said attendees. Frankel explained that property-valuation is a mathematical construct not influenced by city attempts to increase revenue, that his data comes from the annual the income/expense statements property owners must provide the city, and that from 2007 to 2011, the figures that are plugged into the formula — called "comparables," i.e., what comparable apartments can rent for — showed that Queens co-ops declined in value by 12 percent while rentals went up 12 percent.

He said, according to attendees, that he agreed the property-tax system is inequitable, and insisted that Queens had been under-assessed in past years. "How was it possible that for 20 years the annual valuations prepared by the Dept. of Finance were wrong?" Friedrich wonders. "Then suddenly in 2011, when the city badly needs revenue, Commissioner Frankel discovers Eastern Queens has been undervalued by, in many cases, triple digits. I couldn't get an answer from him to this question: Has anybody been fired by Frankel for such serious mistakes over a 20-year period?"

"Co-ops and condos are required by state law to be valued as if they were rentals, so their hypothetical rental income should be the same as the rents reported by apartment buildings," DOF spokesperson Miller responded today. "Instead, co-ops and condos had lower incomes than rentals, an obvious sign they were under-assessed.‬‪"

As he wound down, Frankel explained that he capped tax increases at 50 percent because he believed the city was indeed incorrect on 20 percent of the valuations, and that the cap would give the city time to adjust them.

He went on to take questions. However, attendees who found his Power Point presentation confusing or convoluted were prevented from asking for clarification as he spoke, attendees said.

"The Commissioner was making statements and failing to make provide documentation, substantiation or data to back up those the statements," said Friedrich. "So I politely asked him, 'Give us specifics. Tell us how the LeHavre co-op's valuation has increased 122 percent.' Then Kelty jumped up, which he did a few times during the meeting, and said, 'Bob, you must stop, I want the police to escort you from this meeting.'" One of the two officers approached Friedrich and touched him on the shoulder, which triggered the crowd shouting. Friedrich was not thrown out.

Kelty's authority to try to have done so, in any event, is unclear. Aside form the fact he was not the meetings agreed-upon chair, Mazell says, "I spoke to a member of the board, who told me it was a community service to have this meeting at Community Board 7, but that it was not a Community Board 7 meeting."

An unsigned e-mail today from Queens CB7 said, "The fourth Thursday of every month — except July, August and November — is for the District Service Cabinet meeting." The Queens CB7 website makes no mention of the term nor lists any such meetings on the March agenda, and the Board did not respond to a request for clarification.

One thing seems certain: The contentious issue will not go away soon. "I think at this point," says Friedrich, "it's going to require a lawsuit."

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