Man who redeveloped former Tarentum church gets some relief after tax bill soared $13K

Phillip Rhodes has become accustomed to dealing with problems such as a leaking roof, cracked sidewalks and chipping paint at The Clement in Tarentum.

But seeing the property’s annual tax bill soar by nearly $13,000 after its assessed value spiked nearly 700% was a shock for which he was not prepared.

“It’s expensive to maintain,” Rhodes said of the former church and school he has redeveloped on West Ninth Street. “I’m still not bringing any money home from this.”

Rhodes appealed in 2019 and 2020 after the county’s Office of Property Assessment increased the value on The Clement from $55,000 to $421,600 in 2018.

That increased the total property tax bill, before discounts, from just under $2,000 to about $14,800.

After negotiations, three taxing bodies — Allegheny County, Tarentum and Highlands School District — have agreed to a $302,911 taxable value for the property. At that value, the total tax bill is about $10,600.

“It’s just about fairness,” Rhodes said. “I do understand I have to support the schools and everything.”

Rhodes bought the long-vacant building at auction in 2015 with plans to make it an event venue and rent space to tenants.

Rhodes said he was told the value increased not necessarily because of the improvements he made to the property but because it was generating money.

Andrews & Price, solicitor for Highlands School District, started negotiations with Rhodes’ attorney and “attempted to minimize any tax reduction for the district,” according to a November memo the school district recently released in response to a Right-to-Know request filed by the Tribune-Review.

According to the memo, Rhodes’ counsel provided an appraisal report estimating the property had a fair market value of $240,000.

“Ultimately … we reached a tentative agreement of an assessment of $302,911,” the memo said. The school board voted to accept that value in December.

Tarentum Manager Michael Nestico said the borough consented to the settlement negotiated by the school district.

“The school district has a larger stake in the property taxes, so we ultimately left it up to them to negotiate a resolution for this matter,” Nestico said.

Allegheny County spokeswoman Amie Downs said the county also consented to the final settlement agreement on the property.

The reduction in value means the district will receive about $2,950 a year less than it would have, had the property been assessed at $421,600, while the borough will receive $650 a year less and the county $560 a year less.

However, all three have gained from the property’s redevelopment. Highlands will receive nearly $6,200 a year more than it would have if the property had remained vacant and assessed at $55,000, while Tarentum will receive almost $1,200 more annually and Allegheny County will receive about $1,100 per year more.

Tarentum Council President Scott Dadowski said he recognizes that everyone would rather pay less in taxes, but property owners should expect their properties’ taxable value to go up as they’re improved.

“As a representative of the borough, I’m pleased when any new business comes in. Our goal is to have all of our business district filled up, all of our vacant properties rehabilitated and people living in our vacant homes,” he said.

Taxes owed to Allegheny County for 2019 and 2020 are marked as unpaid on the county’s real estate website. Rhodes said he had not paid them because of the appeal and the increased cost.

“We’re working on it,” Rhodes said. “It’s really a challenge.”

Rhodes said work on the building is never-ending, but he has been able to fill it with nine tenants.

The latest addition, the dance studio Twirl Time, opened at The Clement in late August 2020 after moving from Pittsburgh Mills mall in Frazer. Twirl Time occupies two tenant spots, Rhodes said.

Twirl Time owner Marianne Rieg said her studio has grown from about 90 students in early September to about 120 today.

“It’s working out very well,” Rieg said. “I couldn’t ask for a better landlord. He’s amazing.”