Businessman seeks KOZ status for building
Gary Gearing has been busy the last couple days asking for support to include his Fayette Building in Fayette County’s tax-exempt Keystone Opportunity Zone. He made his pitch to the Uniontown Area School Board on Monday and then to the Downtown Uniontown Business District Authority (DBDA) and Fayette County commissioners on Tuesday.
The school board, county commissioners and Uniontown City Council are the taxing bodies that must approve Gearing’s request, which would abate real estate taxes on the building for 10 years from Jan. 1, 2004, to Dec. 31, 2014. He asked the DBDA for a letter of support.
While Gearing fielded numerous questions from the DBDA and the commissioners, he received no official backing from any of the entities.
Gearing sought the same tax break two years ago but was turned down by the city.
Gearing said the abatements are incentives for out-of-state companies to relocate or for new businesses to open, and having such tax breaks available for his building would help stimulate the Uniontown economy.
He explained that recent state legislation reopened KOZs and allow counties to reallocate existing acreage within the tax-free zones and create sub-zones.
County Commissioner Sean Cavanagh promised his support if the school board and city council agree to the proposal.
Gearing said even if all three taxing bodies approve his request, state approval would still be needed.
Cavanagh said Gearing’s building is Uniontown’s largest building, but is “totally underutilized.”
Only 15 percent of the 220,000 square feet is occupied, Gearing said.
The portion in use houses residential apartments.
Responding to a question from Commissioner Ron Nehls, Gearing said he won the support of two county commissioners and the school board, which voted unanimously in favor it, but city council rejected the idea when he made a similar proposal two years ago.
Gearing said city council approved placing the former Fox Glass building into a KOZ at the same meeting it rejected his proposal.
Responding to question from DBDA Chairman Mark Rafail, Gearing said he would receive the tax abatement even if inclusion in the KOZ didn’t attract a business tenant.
Gearing said a company that moves into a KOZ has to increase its number of employees or invest a percentage of its gross earnings from the previous year in capital improvement for the property it moves into.
Responding to a question from DBDA board member Greg Parsons, Gearing said businesses that move into a KOZ also receive state income tax abatement.
Rafail said the board would respond to Gearing’s request at its April 15 meeting.
Gearing said he will present his request to city council at its April 1 meeting.