New TIF plan supported by local developer
A tentative agreement between two real estate developers will eliminate a planned hotel for Fayette Crossing in South Union Township but could still allow for a tax incremental financing (TIF) plan to move forward.
In statements issued Monday by attorney Jeffrey A. Mills of ReedSmith of Pittsburgh and Allan Wampler, Synergy Development Fayette manager, the two said a revised development plan has been agreed upon and has the support of both sides.
According to the updated plan, the hotel to be constructed by Cedarwood Development of Ohio on its 27-acre property along Walmart Drive will be replaced by a second retail center.
Wampler, spokesman for a local investment group, said that its project — a Hilton Garden Inn — will go forward.
“We believe all parties recognize the importance of our proposed development to Fayette County,” said Mills, who represents Cedarwood. “As a good community member, we decided to meet with (Synergy) to understand their concerns.
“We have had many constructive meetings, which has allowed Synergy to understand the extraordinary development costs that Cedarwood must incur to develop its proposed development.
“As a result, Cedarwood has contacted the (Fayette County Redevelopment Authority) to revise the TIF plan, which will remove the hotel from the (Cedarwood) development.”
South Union Township, along with Fayette County commissioners and the Laurel Highlands School Board were poised to approve an initial TIF plan for Cedarwood that included a hotel and retail strip mall, until Wampler raised concerns that the local investor group had not sought nor received any subsidy for its construction although it was undertaking a similar project.
“If we are investing in our hometown, is it fair, is it equitable that another hotel gets to be built within two football fields of our location and get subsidized and then some?” he asked during a public meeting held on Feb. 11. “We’re paying for all the same things that (Cedarwood) is paying for.”
Wampler’s statements moved the three taxing bodies to reconsider the in-place TIF, said Bob Schiffbauer, township supervisor, on Monday.
“When you look at the economy in Fayette County we cannot pass up the opportunity to bring jobs and added revenue to the area,” he said. “We have to work with those wanting to bring business to the county.”
The initial TIF plan called for about $230,000 per year of the annual $305,000 future collected real estate taxes be diverted to the repayment of a 20-year, $2 million bond secured by the redevelopment authority. Cedarwood requested the taxing bodies consider the incremental tax program in order to complete the $25 million project. The remaining $70,000 would be retained by the taxing bodies.
Of the $2 million, $740,000 would be used to fill the underground mines with grout to stabilize the surface, while $356,000 will be earmarked for intersection improvements near the Sheetz service station/convenience store located at New Salem Road and Route 40, according to the initial TIF agreement.
Schiffbauer said that while new figures have yet to be finalized, he appreciates the cooperative effort by the two developers and supports the concession made by Cedarwood.
“We have every intention to see that this is done right,” he said.
At its meeting last week, the township hired attorney Jane Burkardt of Weiss Burkardt Kramer of Pittsburgh to draft the TIF agreement. The county is also scheduled to take action today to share in the cost for the legal services provided by the firm.
Schiffbauer added that a local committee will be formed to monitor the developer’s progress and the use of the TIF funding.
The school board is has scheduled a public meeting today at 5 p.m. to discuss the TIF plan.
Wampler, meanwhile, said the new plan has his and the local investment group’s support.
“Now that Synergy’s concerns have been eliminated, I encourage the respective taxing bodies to approve the revised plan,” he said.
It is unclear how soon the new TIF plan will be presented to the taxing bodies for consideration.