Palisades Center Set to Receive Millions Following Recent Tax Settlement

The Palisades Center and mall is one of the largest shopping centers in all of the Hudson Valley and also one of the largest in all of America. It's a staple of the region and thousands upon thousands of people visit it every single year.

With that said though, malls in general have hit hard times in recent years with many people opting to avoid the hustle and bustle and instead have switched to online shopping. In addition the Covid-19 pandemic also had a monumental impact on businesses everywhere, which includes malls like the Palisades and even smaller.

These hard times have lead to some interesting financial times for the center, with some speculating the future and whether or not the center would have to shutter its many doors. While there are no definitive answers yet, a recent settlement has yielded positive results and the Palisades Center will be receiving millions of dollars in its tax challenge.

Palisades Center Financial Stress

Back in the Winter of 2023 reports began to surface that the Palisades Center located in Nyack, NY was facing potential foreclosure. According to the reports, the center was facing "...a debt of over $415 million..." and that investors to the center were seeking foreclosure.

The center reportedly had defaulted on a $418.5 million loan which was issued by JPMorgan Chase & Barclay's in 2016 and was set to mature in 2021. A temporary moratorium was requested and granted to the owners of the center and later an agreement was reached that pushed the maturity date of the loan back through October 2022.

The center officially went into default in November of 2022 and by February of 2023 a filing for foreclosure was made. You can read all the details from our original coverage below by clicking on the link.

Looking Back: Massive Lower Hudson Valley Mall Now Facing Foreclosure Questions

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Palisades Center Tax Settlement

This brings us to present day where it appears that the Palisades Center or rather the owners of the property recently settled a long standing tax dispute that will see the center receiving back millions of dollars.

According to the Rockland Business Journal, the settlement out of the Rockland County Supreme Court closes the book on what has been years of tax challenges filled by the Palisades Center and the Shops at Nanuet.

The report states that the Town of Clarkstown agreed to refund the Palisades Center owners $27.5 million dollars in property taxes paid to the town. What's interesting about this settlement is how the center owners will be receiving the refund.

The agreement was confirmed at a special Town of Clarkstown board meeting on July 9, 2024. The Town of Clarkstown, the Clarkstown school district and Rockland will be making the payments over the course of the next four (4) years. The $27.5 million settlement actually is only half of what the original asking price was for the Palisades Center owners in their tax challenge.

The school district will actually be paying the largest portion of $18 million dollars. The Town of Clarkstown is responsible for $7.8 million dollars. Rockland County will pay the smallest portion of $1.7 million dollars.In addition, the Town of Clarkstown will also be paying Shops at Nanuet owners a "yet-to-be-disclosed multi-million dollar settlement".

The Rockland Business Journal report goes into much greater detail explaining all the in's and out's of this settlement agreement, how it all started and the who's who in terms of all the entities involved in the Palisades Center financial drama.

Considering there are many questions as well legal battles left to handle, this story can still be considered on-going. We will continue to do our best to provide update this story if or when new information is revealed.