Millcreek solicitor's representation of property owner raises questions

Source: Erie Times-News, Pa.迷你倉Sept. 29--Lots of lawyers appear before the Erie County Board of Tax Assessment Appeals.Some lawyers represent property owners trying to get their assessments -- and their property taxes -- reduced.Other lawyers represent taxing authorities, such as school districts and municipalities, trying to get the assessments -- and the property tax revenue -- to stay the same or increase.The representation was unusual for a lawyer who appeared before the Assessment Board in a case that is now headed to trial.The solicitor for Millcreek Township, Evan Adair, argued before the board on behalf of a township property owner, Baldwin Brothers Inc., that wanted its assessment on a condominium and apartment complex cut by more than $1.7 million.That change would result in the loss of about $4,300 in annual tax revenue for Millcreek Township.Adair's one client -- Baldwin Brothers, one of the largest property owners in Erie County -- took a position that would, if successful, negatively affect the finances of another Adair client, Millcreek Township.The Assessment Board in October 2012 rejected Adair's request for a lower assessed value on the 160-unit residential complex, called Vineyard Village, in the 5000 block of Old Zuck Road.Adair is continuing to pursue the case on behalf of Baldwin Brothers and related entities in an appeal he filed in November in Erie County Court. In an order on Sept. 17, Senior Judge Michael E. Dunlavey scheduled a trial for April."I can safely say I have not seen any such representation" like Adair's, said Lee Acquista, the solicitor for the Assessment Board for about 13 years."I am not judging. Evan is a very capable attorney. But I have never seen it where it has been done like that."The chairman of the Millcreek Township Board of Supervisors, Joseph Kujawa, said he is not pleased with Adair's representation of Baldwin Brothers.Responding to questions from the Erie Times-News, he said last week that the arrangement stands because he and the other supervisors first approved of it in the mid-2000s, when Adair took over representation of Baldwin Brothers in another assessment case over Vineyard Village -- a case that extended into the current case."I am not happy about it because it looks like it is a conflict," Kujawa said. "It doesn't look good."Kujawa also said he is satisfied that the township's interests in the case are protected because the Millcreek Township School District is challenging Baldwin Brothers' attempt to lower the assessed value of the property, even if the township is not.The school district's lawyer in the assessment case is Michael Visnosky, of Erie. Adair, as the lawyer for Baldwin Brothers, is opposing Visnosky in the case.A victory for the school district would result in an assessed value that would also benefit Erie County and Millcreek Township, which would base their tax revenue from the Vineyard Village property on the same assessed value.Whatever Visnosky gets for the school district "is going to be more money for the township," Kujawa said. "He will do what is best not just for the school district, but for the county and the township."Adair: no conflictAdair, whose salary as township solicitor is $67,226 a year, said he told the township supervisors of his representation of Baldwin Brothers in the Vineyard Village case.Adair has been the township's solicitor since 1992. He also maintains a private practice at 332 E. Sixth St., in Erie.Adair said his representation is not a conflict because the township has not intervened in the assessment appeal, in which a lawyer on behalf of the township would file a notice to make the township a party to the case.Adair said he has generally advised the township supervisors not to have the township intervene in assessment appeals because the amount of tax revenue at issue is relatively small for the township, particularly compared with the revenue for the Millcreek Township School District. Adair said the school district typically takes a position in assessment appeals, as it has done in the Vineyard Village case."Why add to the number of cooks in the kitch文件倉n?" Adair said.Even without the intervention of the township, he said, the intervention of the school district ensures that the taxpayers' interests are considered."It is not like nobody is looking out for the taxpayers," Adair said. "It is not like anyone is trying to steal from the taxpayers."Adair said the Vineyard Village assessment case is the only one of its kind that he is handling for a property owner.The Millcreek Township School District's lawyer, Visnosky, declined to comment on Adair's representation.An official at Baldwin Brothers, Gregory S. Baldwin, who is a lawyer, has appeared in court with Adair to represent the company in the Vineyard Village assessment case. He did not respond to phone messages seeking comment.Revenue at issueThe current Vineyard Village case started with the Erie County Assessment Bureau. As a result of countywide reassessment, which ended in late 2012, the bureau raised the assessed value of Vineyard Village from $6,042,000 to $8,809,940.The director of the Assessment Bureau, Scott Maas, said he based the value of the property partly on rents and other income at the complex.Baldwin Brothers, represented by Adair, filed an appeal with the Assessment Board. Adair is arguing that the value of the complex is $7.1 million, based on an analysis by local appraiser Robert Glowacki, according to assessment records. The Assessment Board heard the appeal on Oct. 17, rejected it, and kept the value at $8.8 million.Adair then appealed to Erie County Court, where Judge Dunlavey will decide which assessed value is correct: $8.8 million or another amount, such as $7.1 million.The assessed value that Baldwin Brothers wants -- $7.1 million -- would drop the assessed value of $8,809,940 by $1,709,940, according to county assessment records.That reduction would reduce the property taxes of Vineyard Village by a total of $34,462, based on current millage rates. That would break down to a drop in revenue of $21,665 for the Millcreek Township School District, $8,430 for Erie County government and $4,367 for Millcreek Township.Reviewing the representationPennsylvania's Rules of Professional Conduct for lawyers prohibit conflicts of interest. One rule states that a conflict exists if "the representation of one client will be directly adverse to another client."The rules allow for a number of exceptions that would allow a lawyer to represent two clients despite a conflict, including if "each affected client gives informed consent."In addition to Kujawa, the board chairman, the Millcreek supervisors are Richard Figaski, in office for three years, and Brian McGrath, a supervisor for 18 years.Figaski said the supervisors first approved the arrangement in the first Vineyard Village case when Figaski was not yet a supervisor. He said he believes that Visnosky's involvement in the case will ensure that the final outcome is fair "to all parties."McGrath said he recalled Adair telling the supervisors that he was representing Baldwin Brothers in the case, but said he did not know when that conversation occurred. McGrath said he understands Visnosky and Adair are opposing each other in the case. He said Visnosky's interests are the same as the township's."It is not that we are not being represented," McGrath said. "We are being represented, though not formally, by the school district, which is typically the case (in assessment appeals). That is not unusual."Kujawa, who has been in office for 18 years, said he has been aware of Adair's representation of Baldwin Brothers since the first Vineyard Village assessment case.That case went to Erie County Court in 2002 and ended with a settlement in July 2010. Adair's signature appears twice on the signature page.Adair signed, along with Gregory S. Baldwin, on behalf of Baldwin Brothers. Adair also signed, along with Kujawa, on behalf of Millcreek Township.ED PALATTELLA can be reached at 870-1813 or by e-mail. Follow him on Twitter at twitter.com/ETNpalattella.Copyright: ___ (c)2013 the Erie Times-News (Erie, Pa.) Visit the Erie Times-News (Erie, Pa.) at .GoErie.com Distributed by MCT Information Services存倉