Who decides if nonprofit PILOTS are valid?

Charities that own tax-exempt real estate will often agree with a local taxing authority to provide Payments in Lieu of Taxes (“PILOTS”) to avoid a costly challenge to their exemption or because they believe they ought to contribute at least partially for the services they get from local governments.  But when a dispute arises over the PILOT agreement, who decides the issues?

It certainly isn’t us, a federal District Court in New Jersey has recently ruled.