Edited at 10:21 a.m. to include comments from the city assessor.

By JIMMY LAWTON
North Country This Week

OGDENSBURG – An Ogdensburg business owner says a massive hike in his property assessment has forced him to lay off three employees and reassess plans to develop the Ogdensburg Cinema.

Jeffrey Michael Skelly, owner of JMS Mechanical said the city’s proposed assessment roll increases the assessed value of his apartment complex from $80,000 to $785,000, nearly 10 times the previous value. The city tax rate is nearly $20 per $1,000 of assessed property value. The school tax rate is more than $25 per $1,000 and the St. Lawrence County tax rate is more than $8 per $1,000.

That means Skelly will pay more than roughly $37,000 more in property taxes next year, if the assessment and tax rates remain at current levels.

Skelly has made substantial investments in the city in recent years, but said the assessment increase is a major setback for his plans.

In 2015 he purchased the former Washington Elementary School for $25,000.

Skelly invested substantial funds to create 10 high-end apartments there, and is still working to create one more.

This year he purchased the long-defunct Ogdensburg Cinema and had been considering reopening the theater or modifying into a sky-zone style entertainment center, but says those plans are now in jeopardy.

City Manager Sarah Purdy said she could not speak on the details, but did say Skelly will have an opportunity to grieve the proposed hike. She said a contributing factor for the hike was the fact that it when from a vacant building to 10-unit apartment complex.

“His recourse is to make an appointment with the assessor and discuss his assessed value. The assessor will tell him what type of information he needs to have handy,” she said.

City assessor Sue Arquette said a neighborhood revaluation was done this year.

"It consists of west side of Paterson Street to the east side of State Street. It also includes north of Lafayette Street to Crescent Street," she said. "Mike Skelly's property on Rensselaer Avenue was not part of the Neighborhood Revaluation, but instead was due to work done to his property through building permits."

Arquette said  the City does have exemptions for properties that get a building permit with work done.

"The owner would have to apply for the exemption and provide documentation to receive it," she said.

Skelly submitted the following letter to North Country This Week following requests for comment.

“City officials are apparently so cash strapped that they can’t wait to pounce on a local businessman, who is trying to improve properties, the business community and the quality of life in Ogdensburg. Where did they come up with $785,000? For me to take on the tax burden, I will have to literally give away half of the income from the ten rented apartments I now have, leaving little if no profit margin. I don’t want to raise rents because my goal was to create quality but affordable housing for middle income families. The city apparently only cares about taxing its citizens, both homeowners and businesses, to death.

“In addition to remodeling the Washington School building, I also recently purchased the former Ogdensburg Cinemas building with plans to re-open it. I planned to use income from the Washington Street apartments to help defray those costs. But that will not be possible now, because the city couldn’t wait to tax the profits out of the new apartments.

“It is no wonder the city continues to struggle and decline. Who can afford to live here? Who wants to invest, only to see their profits taken by the government at the first opportunity?

“In recent years I have spoken with both the city manager, Sarah Purdy and the city’s planning and development director Andrea Smith, and gave them tours of my Washington Street school project. Both were full of praise for the good I was doing in the community. And this is the thanks I get?

“I am asking all homeowners and businesses in the community who feel they are being over taxed to step forward and be heard. They can reach out to me if they want, or go directly to City Council, the assessor of the city manager. Our voices have to be heard.

“Please join with me in protesting our ridiculous tax burden in the city. As a businessman and Ogdensburg native, I am saddened at how they have re-payed me for my efforts. I’m not going to take it laying down.

“By the way, Notre Dame Church is assessed at $805,000. Maybe I should thank God that my 10 medium income apartments aren’t assessed as high as the Lord’s house on Ford Avenue.”

Earlier this month the Ogdensburg Chamber of Commerce honored Skelly's enterprise with their Business of the Quarter Award for the first quarter of 2019.