Judge OKs East Ramapo settlement with yeshivas

• Judge OKs East Ramapo rent credit dispute with yeshivas
• District now free to move on sale of Colton property
• Net gain to the district at least %241.5M less because of settlement

A state Supreme Court justice has signed off on a settlement between East Ramapo and two yeshivas that frees up the school board to sell an elementary school after years of delays and controversy.

But the net gain to the district for the sale of the Colton school property — which was closed to public use in 2009 after what turned out to be a false forecast that public school enrollment was declining — remains unclear.

Under the agreement, East Ramapo will grant the yeshivas more than $1 million in rent credits, waive tens of thousands of dollars in late fees for rent that was never paid and give additional credits for repairs undertaken by the tenants.

At least $1.5 million in credits specified in the settlement document will be deducted from the $6.6 million purchase price, bringing East Ramapo's highest possible profit to $5.1 million. However, several other credits due to the yeshivas in the settlement are not specified, making it difficult to determine the real bottom line.

Justice Margaret Garvey's signature on the settlement, filed in court records Monday, officially ends the latest battle over the lease and sale of the property at 40 Grandview Ave. in New Hempstead.

If the sale to the yeshivas closes as expected by June 30, it also helps East Ramapo balance this year's budget. Officials built in revenue of $5 million from the sale they anticipated while planning the 2013-14 budget a year ago.

School officials and their lawyer, Albert D'Agostino, as well as Paul Savad, the lawyer representing the yeshivas, have declined to comment on their agreement in recent weeks. They did not return messages seeking comment Monday, the first night of Passover.

The lease and sale of Colton were stalled in the past amid opposition from district residents. Many have alleged the school board made a sweetheart deal with the ultra-Orthodox yeshiva community, in which most board members have an interest because their families use the system.

The tenants, Congregation Bais Malka of Monsey and the Hebrew Academy for Special Children, a Brooklyn-based religious school for children with special needs, sued the district last summer, demanding credits toward the purchase of the property for rent paid since 2011.

The deal was further delayed as school officials and lawyers wrangled with each other and New Hempstead officials over the subdivision of the property and the use of several smaller buildings on the site.

The Colton school is on 16 acres that the district intends to sell but it wants to keep 5 adjacent acres that contain the three smaller buildings.

East Ramapo officials settled the rent credit dispute with the religious schools in an apparent reversal of their argument since the lawsuit began that their tenants were not entitled to any rent credit because they were in arrears on the rent.

Garvey, the judge, signed the settlement after rejecting it twice earlier this month because of errors. She also required the lawyers add language that states the court doesn't endorse their findings of fact.

Twitter: @MareesaNicosia