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LERTA approved for Brier Hill Steel

By Patty Yauger pyauger@heraldstandard.Com 3 min read

A majority of Fayette County commissioners have joined with Georges Township and Albert Gallatin School District to grant a tax abatement program for a local company.

In action taken on Tuesday, Commissioners Vince Zapotosky and Al Ambrosini approved an amendment to the township Local Economic Revitalization Tax Assistance Act (LERTA) that will allow a 10-year graduated tax exemption to Brier Hill Steel Co. Inc. of Brownsville, owner of the property located in the Fairchance Business Park.

Commissioner Angela M. Zimmerlink abstained from voting in the matter.

While the action drew criticism from some meeting attendees, both Zapotosky and Ambrosini said that allowing the tax break translates into needed jobs.

LERTA authorizes local taxing authorities to exempt improvements to business properties in designated deteriorated areas from real property taxation for a period not to exceed 10 years on a schedule of up to 100 percent annually.

Georges Township initiated a LERTA ordinance in 1999.

Township Supervisor Chairman Mark Migyanko said Thursday that the Brier Hill Steel property is within a LERTA designated area and the only company to make the request.

“(The tax break) is only for the improvements,” he said.

The 10-year plan allows for a 100 percent tax exemption the first year and decrease by 10 percent each year. After the 10th year, the tax exemption will be terminated, according to the agreement signed by the township.

Dunbar Township resident Terry Kriss urged the commissioners not to enter into the agreement.

“You are giving corporate welfare to millionaires in Fayette County,” he said. “You are not giving us a fair shake.

“You keep giving the farm away.”

According to a statement released by Brier Hill Steel on Thursday, the tax assistance program will be used to “stimulate a substantial expansion of our tenant’s current 65,000-square-foot facility.”

“As Fayette County currently has the second highest unemployment rate in the state, it is vital to attract new businesses and encourage established area companies to grow,” said Eli Shumar, company president. “This expansion will not only provide family-sustaining, full-time, direct hires, but also impact numerous local subcontractors and local retail establishments.”

Boeing, the building tenant, manufactures complex electronic assemblies at the site.

According to tax records, Brier Hill purchased the property in 2002 at a cost of $218,250. The manufacturing site was built the following year.

Brier Hill Steel currently owns three industrial properties in the county with a total of 500 employees.

Shumar said that the Georges Township location employs 130 full-time workers and projects a total of 175 others to be hired over the next three years.

Migyanko, meanwhile, said that he was pleased the commissioners and Albert Gallatin School Board joined them in allowing the LERTA.

“We are all about jobs for our township,” he said.

The action by the three taxing bodies to support Brier Hill, added Shumar, will benefit the entire area.

“This reaffirms the area’s appreciation to local businesses that have chosen to make a commitment for increasing jobs in Fayette County,” he said.

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