PLATTSBURGH -- Representatives of Lake Forest Senior Living Center made a final pitch Wednesday to keep their tax-exempt status.

"We believe this petition is without merit as a matter of law because there has been no change in use," Brian McGovern, a New York City attorney representing Lake Forest, told the city's Board of Assessment Review.

The City of Plattsburgh and Plattsburgh City School District are seeking to have Lake Forest put on the tax rolls.

The argument is that Lake Forest residents pay to live there and are not receiving public assistance, therefore no charity is being provided.

Lake Forest has enjoyed tax-exempt status since 2004, when it was granted the exemption by the Clinton County Real Property Office, which was handling the city's assessment duties at the time.

Lake Forest had been denied tax-exempt status in 2001 by then-City Assessor Debra Peda, but the point was moot because the property still belonged to the Plattsburgh Airbase Redevelopment Corp. and was not eligible for taxation.

Peda was fired by the city in late 2003 and not replaced until late 2004, when the current assessor, Brian Dowling, was hired.

The property was transferred to the city from PARC in February 2004. Shortly after that, it was given tax-exempt status by the county.

In addition to saying that Lake Forest is not a charity, the city is also arguing that the original decision to grant tax-exempt status was flawed.

The city notes that Lake Forest has amassed a surplus of about $2.1 million since opening, proving that it is not a charity.

But McGovern told the Review Board that it does not matter if Lake Forest has a surplus; he said the key is how the property is being used.

"The surplus is not a valid basis" for overturning the tax-exempt status, he said, "so long as these funds are set aside for the operation and not paid as a dividend to any employees."

McGovern said the use of Lake Forest has not changed since it opened.

"Once you are granted an exemption, you are entitled to continue that unless you change your use of the property, and we have not."

McGovern said Lake Forest provides living quarters and assistance to "frail, elderly" people, which is a charitable activity.