Highlands to lose $260K in yearly revenue after Heights Plaza assessment drops

An assessment appeal that slashed nearly $11 million from the value of the Heights Plaza shopping center will cost the Highlands School District $260,000 in revenue each year, according to district Business Manager Lori Byron.

The total value of four parcels making up the plaza dropped from $17.3 million to $6.6 million — or 62% — according to data from the Allegheny County Board of Property Assessments and Appeals Review, which approved the change.

The value of the buildings was lowered by nearly 77%, from about $13 million to $3.1 million. Land value was reduced by 19%, from $4.3 million to $3.5 million.

Richard Lubkin, manager of plaza receiver Pretium Property Management, did not respond to a request for comment.

The Heights Plaza is under Pretium’s management because its owner, Wild Blue Management, defaulted on its mortgage. The case is still making its way through the courts, with Wild Blue Management appealing a foreclosure order against it to state Superior Court, according to court records.

The appeal seeking the assessment reduction was filed by Wild Blue Management, said Dave Montgomery, solicitor for the Board of Property Assessments and Appeals Review.

Wild Blue submitted an appraisal putting a current market value on the four properties of $7.5 million, according to Montgomery. Based on the 2012 base year that Allegheny County uses to set tax assessment values, that comes down to taxable value of about $6.6 million.

“The hearing officer thought it was a good appraisal, and the board agreed,” Montgomery said.

Jeff Lalama, an attorney for Wild Blue, could not be reached for comment.

The taxing bodies can appeal the decision to the Board of Viewers within 30 days. That deadline is Tuesday , Montgomery said.

Because of the assessment reduction, the Highlands School Board has been asked to refund nearly $40,000 in property taxes that was paid on the four parcels in 2019. The refunds range from about $32,000 on one parcel to $877 on another.

The school board discussed holding off on approving the refunds while the district checks for past unpaid taxes.

School board President Misty Chybrzynski said Byron is still looking into the plaza’s tax payments with the district’s solicitor.

Byron did not respond to a request for additional comment beyond what she said at a recent board meeting.

Township Manager Rich Hill could not be reached for comment on how the assessment reduction will affect Harrison Township.

Harrison commissioners Chairman William Heasley said he hopes that any money the plaza owner or receiver retains through lowered property taxes will be put toward repairs and filling its vacant storefronts.

The shopping plaza is “very important” to the township, and officials are hopeful new tenants can be brought in to generate revenue and serve residents, he said.

A large stretch of the plaza is vacant. During the holidays, that area was pitch-black, with the only light coming from Christmas wreaths the township put up, Heasley said.

“It’s right in the center of town. It’s an eyesore,” he said. “It’s something that needs to be developed one way or another, either razed or reused. I hate to have people driving through town and seeing that big eyesore right there.”