LH board to hear public comment on proposed TIF project
Directors in the Laurel Highlands School District will hear public input on Tuesday regarding a proposed property development that is seeking a public financing method needed to secure the project.
Beginning at 5 p.m., prior to the regular monthly work session, the board will accept public comment on Cedarwood Development Inc. of Ohio and its proposed commercial retail development known as Fayette Crossing that would utilize a tax increment financing (TIF) plan to defray costs associated with building and infrastructural improvements. The proposed development site along Route 40 lies north of the current Walmart Super Center, the first property developed by the company in 2005. The new site is to include several major retailers, smaller shops, restaurants and a hotel.
“I feel in part what we do as educators is to talk to the public. I don’t want something to be voted on with this depth of implications without hearing what the public has to say,” said Superintendent Jesse Wallace.
Because the property lies within South Union Township, supervisors, along with Fayette County Commissioners and Laurel Highlands School District, must consent to the terms of the agreement that includes the diversion of about $230,000 annually in estimated new real estate revenue due to the taxing bodies to repay the bond.
“What they are recommending is a 70/30 split abatement whereby the developer would retain a 70 percent tax abatement from county, school district and township for 20 years, and that money would go back to paying the debt services for the development,” Wallace said.
According to the TIF plan presented, the taxing bodies will retain their current amounts and share an additional $84,000 in real estate taxes for the 20-year bond repayment. The school district receives about $10,000 in property taxes from the site. When it’s operational and the TIF are in place, the school district is set to receive about $75,800 in real estate tax revenue, with the township agreeing to divert all new revenue to pay off the bond and retain only the current $400 it receives from the property. The county will recoup a total of about $6,000, according to the yet-to-be approved TIF plan.
Representatives from both the county and South Union Township have spoken in favor of the project; however, a local construction company owner and a McKeesport real estate developer recently questioned supervisors why the taxing bodies would offer the deal to Cedarwood when others undertaking related projects have not been given a similar offer. Now all governing bodies are agreeing to take a deeper look at the TIF plan.
“I think all parties agree that their interest needs to be represented, and, until now, that hasn’t been done,” Wallace said.
South Union Township supervisors have temporarily put on hold the TIF initiative that will divert future real estate tax revenues to repay a $2 million bond secured by the county redevelopment authority. The supervisors intend to act as a mediator to sort out potential differences between affected parties.
“At least now we’re in an agreement to slow the talks down to find an agreement suitable to all,” said Wallace.
Wallace also indicated he will ask the board to retain independent counsel to review the agreement and make the appropriate recommendation for the district.
While TIFs have been used by other counties in the state, this is the first time it has been considered for a Fayette County project.
Cedarwood has requested the agreement be in place for 20 years. Should the taxing bodies partner with the developer for the financing, the construction project will start in the spring.
Planners have estimated about 600 jobs — 200 for the construction and 400 for the operation of the businesses — would be created.
Wallace said although there could be an additional payoff in tax revenue through added earned income and mercantile taxes, he is not certain the developers numbers are accurate.
He is encouraging public attendance and participation in the meeting on Tuesday in order for the directors to have an idea how taxpayers feel about the potential TIF plan.
“The public’s views are important to the district and we want to hear them.”
Staff writers Patty Yauger and Miles Layton contributed to this report.