Oct 15, 2005 By Amy Karpinsky 4 min read

The assessed values of two properties in North Union Township valued at a total of nearly $6 million – the former Kennedy School and the Holiday Inn – will remain unchanged this year, following separate rulings Friday by the Fayette County Tax Assessment Appeals Board. Owners of the two facilities, each of whom recently purchased the properties, independently sought reductions in their assessed values.

Robert W. Similo, who along with Timothy Mahoney purchased the former Kennedy School for $275,000 at public auction earlier this year, attended a hearing to seek a reduction in its assessed value.

Fayette County Chief Assessor James A. Hercik, CPE, testified that the 10.55 acre piece of land is currently valued at $55,750 and the building is valued at $717,400, for a total assessed value of $773,150.

Similo said the building is currently being rented by the Chestnut Ridge Counseling Service for use as a school for special needs students. He said Chestnut Ridge has entered into a five-year lease for $8,200 per month. Similo said he and Mahoney put less than $5,000 in repairs into the building prior to renting it. He asked for a reduction in the assessed value based on comparable school sales in the area.

After Hercik said an income approach evaluation would more than justify the current assessed value, board members Joseph A. Hardy III and Angela M. Zimmerlink agreed to keep the value the same. Vincent A. Vicites, who is also a member of the board, did not attend the Friday morning hearings.

In a separate matter that ended with the same “no change” result, Eastern Hotel Realty LP, owners of the Holiday Inn, sought a reduced assessed value for the hotel.

The 16.34-acre land parcel is valued at $1,866,900, while the building is valued at $3,140,050, for a total assessed value of $5,006,950, Hercik said.

Jennifer Ivanelli, representing the hotel, said the property was purchased in December 2004 for a total purchase price of $3,214,154. She said no renovations have been done since the sale.

Hercik said the former owners of the hotel undertook a $2 million to $3 million renovation project prior to the sale of the hotel. Hardy and Zimmerlink agreed that the value should remain the same.

The board heard testimony on a variety of other assessment appeals Friday, including First National Bank in Uniontown, Pechin Leasing Company Inc. and Devito Park.

Donald D’Amico appeared before the board to seek a reduction in the assessed values of seven Pechin properties that had been owned by his late father, Sullivan D’Amico. D’Amico said he was seeking lowered assessments on properties that were generally not in good condition.

Hardy and Zimmerlink agreed on reducing assessed values for four of the buildings D’Amico appealed. The decisions each included keeping the assessed value of the property the same. The value of a vacant three-story building in Dunbar Borough will drop from $31,090 to $20,000; the value of a light-industrial zoned building in Masontown will drop from $131,570 to $120,000; the value of a warehouse at the former Broadford Distillery in Connellsville Township will drop from $51,410 to $30,000, and the value of a building on North Arch Street in Connellsville, half of which was destroyed by fire and demolished, will drop from $27,450 to $10,000.

Zimmerlink and Hardy did not rule on three other properties, including the site of the former Pechin’s Shopping Village in Dunbar Township, a building that was formerly restaurant in Masontown and a second parcel that was formerly part of the distillery in Connellsville Township.

The board also heard testimony and is considering a request to reduce the assessed value of the drive-in bank on Route 21 near Gabriel’s Plaza and the First National Bank Building on High Street in Uniontown.

The board opted to keep the values of three parking lots utilized by National City Bank employees in downtown Uniontown the same, at the current assessed values of $43,460, $25,750 and $23,230.

In another appeal, Doug Corteal, owner of Devito Park, testified that his building, valued at $1,259,590, should be valued at a lower rate per square foot, comparable to similar businesses in the area. His examples showed that while Devito Park’s building assessment rate is $13.71 per square foot, Laurel Mall’s rate is $11.09 per square foot, CRH Catering on Route 119 is $11.69 per square foot and Bailey Machine is $6.15 per square foot.

Corteal said his site, which includes a roller rink and ice skating rink, is located off a main highway. He said they are “two gigantic rooms full of air” in addition to a snack bar and locker room. Corteal said his annual income is $200,000 and he is paying $20,000 in property taxes. The current total valuation is $1,364,870, which includes the $105,280 assessed value for the land.

Following each of the hearings, Hercik said the board would issue rulings in a matter of five to 10 days.