Auburn City Council approved a negotiated settlement with Walmart over its 2025 property tax assessment, authorized the sale of a “paper street” to enable new development, and advanced several infrastructure and budget items during its meeting Thursday.
The session also featured pointed public comment over tax fairness, particularly as the city weighed corporate assessment relief against calls to increase senior and disabled homeowner exemptions.
Walmart settlement approved through 2029
Council unanimously authorized a settlement in the tax assessment case involving Walmart’s property at 297 Grant Ave.
Corporation Counsel Nate Garland told council Walmart had sought to reduce its assessment by roughly 45% for the 2025 tax year. After negotiations, the parties agreed to a reduction of about 4%, resulting in an estimated $5,000 per year decrease in tax revenue through 2029, with no refund issued to the company.
Garland framed the settlement as a risk-management decision. He said going to trial would have required costly expert appraisals and could have exposed the city to significantly larger financial losses if Walmart prevailed. Settling the case avoids litigation expenses and locks in certainty for several years, he said.
Councilor Craig Diego acknowledged frustration with granting relief to a major corporation but said the negotiated outcome was far preferable to the potential financial exposure had the case gone to trial.
During public comment, resident James Udall criticized the settlement, arguing that seniors and disabled homeowners have not received updated income thresholds for local tax exemptions while Walmart secured relief. Another speaker questioned the city’s reliance on delinquent tax collections and foreclosures as revenue sources.
Paper street sold to move project forward
Council also approved the sale of an unimproved “paper street” to Pearl River 23 LLC for $100.
City officials said the wooded right-of-way contains no utilities and is undevelopable on its own. Its existence prevents the owner from merging adjacent parcels for a planned project. The city determined the land was surplus and not needed for municipal purposes.
Administration indicated the sale could unlock development in what was described as an economically challenged section of the city.
Infrastructure projects and grant funding
City Manager Jenny Haines provided updates on several major projects.
The Lake Avenue Bridge rehabilitation remains out to bid, with bids due Feb. 10. At the wastewater treatment plant, contractors are preparing for commissioning of the new solids dewatering facility and digester system over the next 60 to 90 days. Large stone excavated from the overflow retention facility is being reused in regional water quality projects.
Haines also said the city is applying for a New York State Municipal Parks and Recreation grant to reconstruct and replace the tennis and pickleball courts at Casey Park. The request seeks just over $572,000 in funding, covering up to 90% of project costs if awarded.
In addition, wholesale water agreement discussions with neighboring municipalities are continuing into 2026, with the goal of developing a transparent and equitable rate structure.
Budget planning underway
Council recently adopted the 2026–27 budget preparation calendar, which sets department submissions for early February and final budget adoption by early June.
Mayor James Giannettino and Councilor Diego also reported on their attendance at the New York Conference of Mayors in Albany, where local officials advocated for increased Aid and Incentives for Municipalities funding in the state budget. Giannettino said both Senate and Assembly members acknowledged the need to increase AIM funding, though no changes have yet been finalized.
Proclamation and public hearing
The meeting opened with a proclamation declaring February 2026 as Black History Month in Auburn, recognizing “A Century of Black History Commemorations” and honoring the contributions of African Americans locally and nationally.
Council also opened a public hearing on the 2026–2027 Community Development Block Grant Annual Action Plan. No residents spoke during the hearing, which remained open during the meeting.
With litigation risk addressed for now and development approvals moving forward, council’s focus now turns to the upcoming budget cycle and continued infrastructure investment amid ongoing pressure on state aid and local tax policy.
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