image description
Owners of the Berkshire Mall property are feuding with the Baker Hill Road District over the amount of taxes owed and are delinquent $500,000 owed to Lanesborough.

Half-Million Unpaid Mall Bills Could Fall on Lanesborough Taxpayers

By Brittany PolitoiBerkshires Staff
Print Story | Email Story

Town officials and road district representatives are working on how the town will plug the $500,000 hole in the fiscal 2026 budget. 

PITTSFIELD, Mass.— The Berkshire Mall's unpaid bills to the Baker Hill Road District could fall on taxpayers. 

The Select Board has agreed to an executive session with the road district and Finance Committee, if possible, to discuss how they will account for more than $500,000 missing from the approved fiscal 2026 budget. 

The road district will sue the mall owners for more than $1 million in unpaid taxes for the Routes 7-8 Connector road and, regarding this year's balance, attorney Mark Siegars advised the town to "treat it as though you might not get it." 

This means it would have to be collected through taxes. 

"I think through this process of figuring this problem out, we need to be very clear with the town, with the taxpayers, what we're doing and why," Finance Committee Chair Lyndon Moors said during a joint meeting on Monday. 

"They left the town meeting assuming that their taxes would be here, and now we're saying, 'Guess what? Your taxes may be here instead,' But I think there's a rational explanation for it." 

The road district is an independent municipal district within the town with a governing body that oversees the maintenance of the connector road as a public way. It is charged with ensuring the timely payment of the Berkshire Mall's bond and that the mall meets obligations to the community regardless of ownership.
 
A December 2024 lawsuit filed by the road district seeks $545,000 from the mall owner JMJ Holdings for taxes due in May 2024. JMJ has demanded a jury trial, saying it has no contract with the road district and that the BHRD is acting outside its legal authority.

Siegars, who represents the road district, will bring forward another suit to collect $500,000 in 2025 taxes. He reminded the board, "This is the town's money we are talking about. It isn't the road district money."  

The mall owners reportedly filed a complaint with the Inspector General's Office, and he advised members of the district's prudential committee not to say much "because one of the things the Inspector General could do is refer the matter for criminal proceedings, and I am not going to let them jeopardize their position."

"Litigation is the answer, and my suggestion to you is, why don't we have a meeting to figure out how the town can help the road district collect the money that the town's owed?" Siegars said. 

"I can tell you that I've been to the state Legislature on my own on behalf of the road district to see if we can get some assistance to help the town get paid. I'm asking the town, on behalf of the road district, to join in that effort to collect the town's money." 

At the session, which is not yet scheduled, the BHRD will present the budget shortfall after payments from Target, which owns and operates its building. He said that on Wednesday, "certain decisions will be made with regard to payments that can be made based on the income we have." 

Select Board member Michael Murphy emphasized the need for a plan. 



"An important aspect of that meeting is to have a frank, and at this point, private discussion on what our plan is to recoup that money on behalf of the Baker Hill and ultimately on behalf of the townspeople of Lanesborough," he said. 

The budget approved at the annual town meeting designates $322,825 for police services on the road and $143,985 for Department of Public Works services. Select Board Chair Deborah Maynard explained that it was passed with the understanding that the road district could pay its portions, "and that's in question now." 

The town could include it in the recap sheet as an estimated receipt and be in a deficit, or have it go into the tax rate. 

Maynard reported that a state Division of Local Services representative advised that they don't include the shortfall in estimated receipts and go into deficit. 

"To be honest with you, I would rather not see the town go into deficit. I would rather have it not counted as a recurring estimated receipt on the recap, but put in just the total annual budget," she said. 

"And I know it will affect taxes this year, but collecting the money then will give us that much more free tax at the end of the year." 

The town's counsel, Jeffrey Blake, said it was "probably the best course of action" to assume the town won't collect those funds. 

"Litigation, as we all know, takes a long time, so I don't think that you're going to be getting those monies from the mall," he said. 

"As attorney Siegars indicated, Target is paying you, and I think you can figure whatever they're going to pay and offset it by that, or whatever the Baker Hill Road District is able to pay from the proceeds that they get from Target." 

JMJ Holdings is planning a nine-figure overhaul of the shuttered mall property into 420 to 450 units of senior housing. In a May interview with iBerkshires, project consultant Timothy Grogan said the property is not subject to a normal tax rate system because of the Baker Hill Road District, which he said charges the property six times more taxes than other Lanesborough businesses are subject to.

The district anticipates filing a motion for summary judgment to collect the funds within the next 60 to 90 days. 

"If we get that and they don't pay, then we will move directly to sell the mall to satisfy that judgment like we have in the past. As a matter of fact, in 2019 we paid, the road district paid, for a lawsuit by the Town of Lanesborough to collect money it was owed by then-current owner, Berkshire Real Estate Holdings LLC, and we all got paid," Siegars said. 

"We started that action again with the subsequent owner, and he sold the mall to the current owners, so we all got paid. Typically, what happens with the mall is they get a tax bill, and they sell the real estate and we get paid. There's no certainty that's going to happen this time because this time, there's a mortgage on the property." 


Tags: Berkshire Mall,   deliquent taxes,   fiscal 2026,   

If you would like to contribute information on this article, contact us at info@iberkshires.com.

BRTA Focuses on a New Run Schedule

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The Berkshire Regional Transit Authority is still working on maintaining its run schedules after dropping the route realignment proposal.

Last Thursday's meeting was Administrator Kathleen Lambert's first official meeting taking over the reins; retiring director Robert Malnati stayed during a transition period that ended last month.

Lambert is trying to create a schedule that will lessen cancellations. There was a two-hour meeting the week before with the drivers union to negotiate run bids and Lambert is working with the new operating company Keolis, which is taking over from Transdev.

The board spoke about anonymous emails from drivers, which Lambert said she has not seen. iBerkshires was not able to see those letters, but has received some. 

"They were lengthy emails from someone describing themselves as concerning BRTA employee, and there was a signed letter from a whole group of employees basically stating their concerns. So, you know, to me, it was a set of whistleblowers, and that, what my understanding is that this really triggers a need for some type of process to review the merits of these whistleblowers, not going to call them accusations, but basically expressions of concern," said member Stephen Bannon.

A letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.

Lambert said it's difficult to navigate a new change. She also noted many drivers don't want to do Saturday runs and it has been hard negotiating with drivers on the new runs.

"I would like you all to keep in mind that the process of change is super difficult. Transdev has been here for 20 years, and some of these drivers have never known any other operating company, the way some of the operations have been handled has been archaic," she said. "So getting folks up to speed on how a modern transit system works is going to be painful for them. So I don't want to say that I'm unsympathetic, because I am sympathetic, but I am trying to coax people along with a system that's going to seem very strange to them."

The board spoke about better communication between them and Lambert, citing cooperation will be best moving forward.

"There's just a lot of stuff in the air right now, and there are a lot of fires to put out to make this a coordinated effort. And if we don't keep our communications open and be straightforward, then you get blindsided about how you know the input that you could get from us about your position, and how you know what's going on in your direction, and we get blindsided. And I think that we have to make sure that this is a collaboration," said member Sherry Youngkin.

"Both sides have responsibilities, because in the long run, this advisory board is going to have to make decisions as to how we brought forward and if we've gone forward in a fair and helpful way. And I think that's hopefully what everybody is looking for also." 

Transdev and Keolis held a three-day recruiting event interviewing almost 40 candidates and offering jobs to eight, but only three stayed on to start training. Lambert said it was disappointing but she will keep trying to retain more people.

In her first report to the board, she noted that ridership dipped a little over 10 percent, but still remains higher than last year, adding that was because of cancellations of services because of the lack of drivers.

Like the last meeting, some of the advisory board members were torn over the start of the Link413 service, worried that the start of the service took drivers away and the numbers of riders are low.

Lambert, however, said the ridership has doubled from last month.

"As I've spoken before, we have, generally, a six-month adoption for brand-new service before you can really go in and evaluate, are you being successful based on the grant that my predecessor wrote along with the team for PBTA and RTA, we are ahead of schedule, which is pretty good, so I'm hoping that will continue to improve," she said.

Member Renee Wood said the board never approved the service, adding the only thing she could find in the minutes was a vote to accept the equipment. She said it was supposed to be put on the agenda to discuss.

"The Link413 service has been three years in the making. It's been a grant that was accepted and has been working with our partners, PVTA and FRTA, to put into place. So I don't have the entire history of how that process worked, but it's been three years in the making, and did we not understand that once we accept that grant that we were going to put in new service?" Lambert said.

The board discussed if Title VI, the Civil Rights Act, was followed with an accurate review and accurate amount of time for public comment period on the service changes and if its attorney should review if the  grant conditions were properly followed.

Lambert said changes had the 60-day comment period included in the proposed route realignment packet, giving the opportunity for the community to respond to that as well but will look into the legality of the situation with their attorney.

View Full Story

More Pittsfield Stories