Uniontown businesses can take advantage of program
Owners of buildings in downtown Uniontown wishing to take advantage of a program that offers tax exemptions for new construction and improvements can now apply knowing that the program is in place. Earlier this year, the three taxing bodies, the Fayette County board of commissioners, the Uniontown Area School District and the city of Uniontown, separately approved extending the Local Economic Revitalization Tax Assistance Act for downtown Uniontown, although initially there was some confusion as to when the program took effect.
According to Pennsylvania law, the program does not go into effect until all taxing bodies approve it.
The program grants a tax exemption of 100 percent of the valuation of the new construction and improvements to buildings within the downtown business district. The renewed program will expire Dec. 31, 2008. A previous LERTA program for downtown Uniontown expired Dec. 31, 2005.
Uniontown City Council was the first to adopt the program, on April 5. At that time, council also voted to accept two properties into the LERTA program. Both properties are owned by Commercial Center Associates, which is Fayette County Commissioner Joseph Hardy III’s real estate management company, and the renovations had already been completed.
The interior of 7 Morgantown St. was renovated into retail space at a cost of $61,724. The first floor of 35 Morgantown St. was renovated for use as a retail business at a cost of $97,237.
Council voted 4-1 in favor of those LERTA requests. Councilman Joseph Giachetti voted against both resolutions.
A third property, owned by Alvin S. Mundel, was not approved by city council at the April meeting. He applied to have a new facade and outdoor sign installed at Mundel’s Furniture and Appliance Outlet, 31 Morgantown St., at a cost of $160,000. Council initially voted 4-1 in favor of the LERTA request, but then denied at in a 3-2 vote after code enforcement officer Myron Nypaver said Mundel’s construction plans have not yet been approved.
Although city council approved the LERTA requests for Hardy’s two properties, because they were approved before LERTA was officially enacted, the tax assessment office did not approve them.
Since the program has been enacted, Hardy has opted not to reapply. According to Jeff Nobers, vice president of corporate communication for 84 Lumber, Hardy will not participate in any new LERTA designations because he voted to approve the program, and does not want the appearance of a conflict of interest.
Commissioners Hardy and Vincent A. Vicites initially approved the program in April with the effective date of April 27, thinking it had previously been approved by the city and school district. After learning it was not approved by the school district until May 15, during the monthly May meeting, the commissioners changed the wording in the resolution to make the effective date May 15.
Commission Chairwoman Angela M. Zimmerlink voted against the program.
According to Fayette County Chief Assessor James A. Hercik, CPE, since the LERTA was approved by all taxing bodies, only one business has applied for inclusion into the program, namely Mundel’s Furniture on Morgantown Street.