A judge has rejected Erie County’s attempt to undo a tax settlement between Lackawanna and the owners of the old Bethlehem Steel site.

The county had tried to intervene in an attempt to avoid refunding $2.1 million in taxes and sewer fees. But the City of Lackawanna’s lawyers argued that the county was far too late.

State Supreme Court Justice Donna M. Siwek had agreed to the settlement April 24 to close a case that had gone on for seven years.

The city’s lawyers referred to the county as “Rip Van Erie.”

Meanwhile, county officials could be considering an appeal.

“We are weighing our options and contemplating an appeal based on the strong merits of our case,” Erie County Attorney Cheryl Green said Friday.

To settle the tax challenge, Lackawanna officials struck this compromise: The property’s assessed value would fall from $40 million to zero for 2001-07, then rise again. But the City of Lackawanna and the school system would not have to refund the taxes paid this decade by current owner Mittal Steel Co.

Without a place at the table, Erie County was not spared, however. It is likely the county will have to refund $1.5 million in taxes paid over the years, plus $600,000 paid to one of its sewer districts.

During the administration of County Executive Joel A. Giambra, County Attorney Frederick Wolf decided against involving the county in the many tax assessment challenges.

“Had the county administration been involved in this litigation and settlement, the negative impact to the county could have been reduced or possibly even avoided,” County Comptroller Mark C. Poloncarz said this week.

mgryta@buffnews.com

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