PLATTSBURGH -- The City of Plattsburgh Board of Assessment Review has ruled that Lake Forest Senior Living Center should be a taxable property.

The board issued its decision late Thursday afternoon after a final hearing Wednesday. Lake Forest will now receive a tax bill.

"They will be on the rolls and responsible for paying taxes," City Assessor Brian Dowling said.

UNANIMOUS VOTE

John Girard, chairman of the review board, said the vote to remove Lake Forest's tax-exempt status was unanimous.

"Based on the testimony and records presented to us, we felt that it did not meet the criteria," he said.

The board also ruled that Pine Harbour, an assisted-living facility next to Lake Forest, would retain its tax-exempt status.

LAWSUIT EXPECTED

Lake Forest is expected to go to court over the issue, which could take a long time to resolve. Dowling noted one similar case downstate that took 10 years to settle.

With that in mind, the city will take the money that Lake Forest pays in taxes -- about $200,000 per year for city, school and county taxes -- and put it in a separate escrow account, where it won't be touched.

If the city loses the court case, the money will be returned to Lake Forest.

If the city wins, it will use the money as revenue.

The review board's decision came after months of controversy surrounding the Lake Forest property.

The city and the City School District both sought to have the facility placed on the tax rolls earlier this year.

The city and school argued that Lake Forest was a business that has amassed a $2.1 million surplus since it opened in 1999.