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South Union supervisors approve TIF

By Steve Ferris sferris@heraldstandard.Com 2 min read

The South Union Township supervisors approved a tax incremental financing (TIF) plan aimed at helping an Ohio developer bring two national retailers to the Fayette County Business Park.

Supervisors unanimously approved a TIF in which the township agrees to waive the $400 in real estate tax revenue it collects on 27 acres adjacent to Walmart for 20 years to help Cedarwood Development of Ohio pay for the infrastructure to build a Dick’s Sporting Goods and a Hobby Lobby.

The supervisors’ action came last week after the Fayette County commissioners voted 2-1 to chip in the $3,000 the county receives in property taxes from the site for 20 years.

Cedarwood will receive a total of about $965,000 over the 20-year period.

The current assessed value of the property is $672,250. When the retail stores are operational, the property value is expected to rise to $15 million. Based on that figure, the township would receive $8,970 a year in property taxes and the county would receive $67,000 annually.

Hobby Lobby is expected to open in late spring and Dick’s is planning to open in the third quarter next year, said Robert Schiffbauer, township supervisor.

“Two well known chains that will add a lot to the area. It helps make us a destination place having fine stores like Hobby Lobby and Dick’s in our area,” Schiffbauer said. “We’re a secondary market. I’m happy to get what development we can’t get. The TIF is needed for innovating ways for economic development and bringing in tax dollars.”

A TIF with a larger tax break involving the county, township and Laurel Highlands School District fell through after the district declined to participate.

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