posted by Mike Madison at 10:48 AM /
From the Tribune-Review:
The Mt. Lebanon School Board on Monday night approved a controversial tax-increment financing plan for a proposed luxury condominium complex.
The board voted, 6-3, to give a $6.1 million tax break to developer Zamagias Properties for the $42.8 million project at Washington and Bower Hill roads.
Board members Mark Hart, Jo Posti and Susan Rose voted against the plan, which moves to the Mt. Lebanon commissioners for consideration.
[MJM note: Hart and Posti were the School Board members of the TIF committee.]
The commissioners will have a public hearing on the proposal at 6 p.m. Monday and vote on the tax break in April.
At least one commissioner told the school board last night that he is in favor of the plan.
"It's important to move forward with this project," Commissioner John Daley said. "It's an important project."
If the commissioners turn down the tax break, Zamagias officials have said the project -- planned on a vacant strip owned by the municipal parking authority -- likely will not happen.
Under tax-increment financing, money that would have been paid as property taxes can be used for infrastructure improvements. The Zamagias project calls for the addition of 50 public parking spaces; a new park, plaza and bus shelter; and road improvements along Bower Hill Road.
"The issue at hand is whether we should divert tax dollars for elements of this project," Hart said.
He explained that he doesn't believe school tax dollars should be used for improvements -- such as building a turning lane -- which he sees as the responsibility of the municipality.
But board President Joseph Rodella and others who supported the plan said it is important to look at the increased revenues the project will bring the school district.
"It's a pretty difficult issue. ... We're a landlocked community with escalating costs," Rodella said.
An independent financial analysis by Janney Montgomery Scott said that the amount of money that would be pledged by the school board and municipality is reasonable because it represents new income rather than an existing revenue source and would not impact their budgets.
The report said that when completed, the assessment of the 1.71-acre site will increase $845,000 to $37.3 million and generate $20.7 million in tax revenue over a 30-year period.
Any revenue generated by increases in the property tax rate would go to the taxing bodies, not the project.
The 72-unit condominium complex would be built in two phases with a total of 14,000 square feet of retail space. Condo units will cost from $290,000 to $1.1 million.
The Mt. Lebanon School Board on Monday night approved a controversial tax-increment financing plan for a proposed luxury condominium complex.
The board voted, 6-3, to give a $6.1 million tax break to developer Zamagias Properties for the $42.8 million project at Washington and Bower Hill roads.
Board members Mark Hart, Jo Posti and Susan Rose voted against the plan, which moves to the Mt. Lebanon commissioners for consideration.
[MJM note: Hart and Posti were the School Board members of the TIF committee.]
The commissioners will have a public hearing on the proposal at 6 p.m. Monday and vote on the tax break in April.
At least one commissioner told the school board last night that he is in favor of the plan.
"It's important to move forward with this project," Commissioner John Daley said. "It's an important project."
If the commissioners turn down the tax break, Zamagias officials have said the project -- planned on a vacant strip owned by the municipal parking authority -- likely will not happen.
Under tax-increment financing, money that would have been paid as property taxes can be used for infrastructure improvements. The Zamagias project calls for the addition of 50 public parking spaces; a new park, plaza and bus shelter; and road improvements along Bower Hill Road.
"The issue at hand is whether we should divert tax dollars for elements of this project," Hart said.
He explained that he doesn't believe school tax dollars should be used for improvements -- such as building a turning lane -- which he sees as the responsibility of the municipality.
But board President Joseph Rodella and others who supported the plan said it is important to look at the increased revenues the project will bring the school district.
"It's a pretty difficult issue. ... We're a landlocked community with escalating costs," Rodella said.
An independent financial analysis by Janney Montgomery Scott said that the amount of money that would be pledged by the school board and municipality is reasonable because it represents new income rather than an existing revenue source and would not impact their budgets.
The report said that when completed, the assessment of the 1.71-acre site will increase $845,000 to $37.3 million and generate $20.7 million in tax revenue over a 30-year period.
Any revenue generated by increases in the property tax rate would go to the taxing bodies, not the project.
The 72-unit condominium complex would be built in two phases with a total of 14,000 square feet of retail space. Condo units will cost from $290,000 to $1.1 million.
Labels: school district, taxes, TIF, washington park
13 Comments:
Yeah! Progress. And, as I've said anonymously so many times in the past, I'm sorry that this is the way the world has to work now. But, as they say, "it is what it is" and it's far better to have these condos built than it is to look at an empty lot and an old former gas station. The extra tax dollars won't hurt either. Now if we could just get somebody to plant a bug in the Dyke family's ear regarding the updating of their storefront.....
It's important to keep the merits of the Washington Park project separate from the merits of the proposed TIF.
I doubt that such an upscale development will succeed in Mt. Lebanon, but I believe that a willing developer should have the right to try.
I do not believe that a TIF for such a project is needed or is in the interests of the community.
What's wrong with the Dyke store? It's not elegant, but so what?
If anyone in SW PA has any doubts - I totally disagree with the position of the School Board last night. That being said, disagree or not, you have to credit the members for putting considerable effort into their individual decisions. Not a single comment was off-the-cuff.
Except for: “I don’t care how money much the developer is going to make” Talk about out-of-character - where did that come from?
On balance though, what am I missing? I cannot begin to come close to thinking the diversion of millions of tax dollars into private property is even remotely a good idea in this case, let alone necessary. (Like Mike said - the issue is the TIF, not the development.)
The lesson here is the value of the Mt. Lebanon education. How important critical thinking is. And that it is learned in the formative years. 2 of 3 no votes were graduates of Mt. Lebanon Senior High School (Heart & Posti).
To me, it was a done deal. As soon as I saw the flippant, silly attitude of some of the frat boys on the school board, I knew how the vote was going to turn out...a rude awakening for Josie Posti probably. All of that hard work for nothing. As for Mr Rodela's end of the meeting sermon...smooth as silk, sincere as polyester. Mark Hart...always the voice of reason.
As much as I disagree with the School Board, this fiasco is not their fault. They were dealt a bad hand by the Municipality - which is totally responsible for the chaos.
The Municipality held the land hostage for all these many years and then used the fact that it has not been developed for all these many years as an argument why it needs a public subsidy.
And then claimed a TIF was not a public subsidy. (??) (See Commissioner Humphreys PowerPoint presentation.)
It occurs to me that government is the only enterprise where failure to try is accepted.
Failure to deliver is rewarded.
And a scheme that wastes taxpayer monies is a victory.
I should be clear after all that - 95% of what goes on under the direction of the Municipality is well done. Remember - I live here by choice, as do +/- 32,000 other folks. If it was so awful I (and others) would live elsewhere. It is the "big" initiatives that get all fouled up. And responsibility for these initiatives rest solely with the MTL Commission. The funny thing about the Commission is I know the folks pretty well and respect the members as neighbors - but something happens when they get behind the rostrum. I cannot figure that part out.
Anonymous at 11:16 -
Couldn't agree with you more. An Auto Parts store has been there for as long as I can remember, and I'm a life long resident of Mt. Lebanon. Different owners/managers, but the businesses are respectful, helpful and pay their taxes. It's an auto parts store, not an interior design gallery, for pete's sake.
Bill - Well said. The municipality tends to muck up big initiatives. Now, should we debate whether the parking authority should exist (Don't open that can of worms!)?
Anonymous Mom of 3
The Parking Authority is a financial mess and totally unresponsive to the Uptown and Beverly Road merchants. One day I was talking with a merchant Uptown and referred to "our friends" at the Parking Authority. He quickly told me the Parking Authority is "no one's" friend.
But yet they are getting +/- $700,000 in construction costs for a new lot -- over and above the market value of their land -- paid for with tax dollars diverted from the School District, via TIF. They must be someone's friend.
The Stevenson family business already got its tax break from Mt. Lebanon - it doesn't need another one.
Several years ago, the family business recorded a 30 year "Recreational Easement" in the name of the Municipality on land it owned that has since been developed as James Place Extension. A generous thing to do.
The only thing is - it never told the Municipality about the easement, until it wanted to sell the land (about 26 or 27 years later).
It came to light about 5 years ago when Tom Stevenson approached the Commission to vacate the easement. Their business had recorded the easement in the Municipality's name without the Municipality's knowledge, but could not take it back at that point, without the Municipality's OK.
Why the easement in the first place if they never told the Municipality?
It appears the land received preferential tax treatment for assessment purposes under the State's clean and green program. For years the assessed value on the 12 acre plot was about $625 (~$2,500 Fair Market Value). Shortly, after the easement was vacated, the business sold the land for $400,000.
I am opposed to the TIF. The developer should pay any taxes due. He's sticking the rest of the taxpayers with his share of the taxes and I object to that.
If he doesn't want to pay any taxes, don't build.
Can I clarify something ......
The tax increment comes from the difference between the taxes today and the taxes after the site is developed. The taxes to be diverted in the TIF are the normal property taxes paid by the new condominium owners.
However, instead of these taxes going to the taxing bodies, 72% are diverted away from the schools and essential government services to pay debt incurred to build the property.
Using TIF debt to fund part of the project enables the developer to NOT use its own money and when the project sells out, the developer keeps +/- $4,500,000 MORE than it would have without a TIF.
$4,500,000! That's a new pool for the school. The Board knows best!
School board members Carol Walton and Rene Garson both voted FOR the TIF, and both are running for re-election this year. If you disagree with the TIF being approved vote them out of office. There are many other issues which will come before the board, and perhaps a vote against these incumbants will send a message to those who remain or are elected.
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