The Jamestown Board of Public Utilities approved a resolution to appropriate an additional $125,000 in legal fees in Dow Street substation annexation case. If all funds are allocated, the total for the BPU on the annexation case will be $405,000. P-J photo by Dennis Phillips

The total amount spent by the Jamestown Board of Public Utilities on legal fees in an attempt to annex the Dow Street substation could exceed $400,000.

On Monday, the BPU board approved change order number four to fund Bond, Schoeneck & King an additional $125,000 for anticipated legal cost, bringing the total appropriated to $405,000.

David L. Leathers, BPU general manager, said the additional legal fees will cover expenses through June. He said the oral arguments for the case have been scheduled for April with the Fourth Department Supreme Court Appellate Division in Rochester.

After oral arguments, he said it will take eight to 10 weeks for the court to make a decision.

In August 2017, the city passed a resolution approving of the annexation. The village of Falconer and town of Ellicott voted against the annexation in September 2017, which leaves the annexation decision up to the state Appellate Division to decide.

Last year, Sam Teresi, Jamestown mayor, said a preparation meeting with a three-member tribunal was held in September and then a more formal meeting was be held with the panel in October.

The three-member tribunal then created a report that was be given to the five-members of the Fourth Department Supreme Court Appellate Division in Rochester who will rule on the case, Teresi said.

The first payment to the law firm handling the case was $40,000 in 2017. In August 2017, the first change order happened when the BPU appropriated an additional $60,000 for legal fees. The second change order occurred in January 2018 when the BPU allocated another $70,000 to the law firm. In August 2018, the third change order took place when the BPU funded $110,000 to Bond, Schoeneck & King.

The annexation case started in January 2017 when the BPU requested that the Jamestown City Council initiate annexation proceedings for the Dow Street substation, which is currently located in the village of Falconer in the town of Ellicott along the city border.

In August, the Falconer Central School District had spent $112,930, said Stephen Penhollow, Falconer Central School District superintendent. The village of Falconer had appropriated $51,997.34 through the end of May, with June, July and August billing yet to be determined, according to Anna Fales, village clerk. The town of Ellicott had allocated $12,060. The total cost as of August for all three of those municipalities was $176,987.34. Penhollow said officials from the three entities determined how much each would pay for law firm Harris Beach based on the percentage of taxes that will be lost if the BPU substation is annexed into Jamestown.

Officials in Falconer and Ellicott have publicly stated they are against the annexation proposal because it would cost them tax revenue. Currently, the BPU pays a total of around $325,000 in property tax payments to the village of Falconer ($69,000); town of Ellicott ($34,000); Falconer Central Schools ($154,000); and Chautauqua County ($69,000).

If the annexation is approved, the BPU would save around $157,000 in property tax payments annually and the city and the Jamestown Public School District would each start to receive tax equivalency payments of around $79,000 from the BPU.