At least 3 Jeannette projects in the works if tax breaks are approved, official says

Developers in at least three projects in Jeannette are waiting for a tax break program to be approved before getting work underway, according to fire Chief Bill Frye.

Council could vote Thursday to establish 19 Local Economic Revitalization Tax Assistance zones around the city in an effort to spur redevelopment in specific areas. The group discussed a proposed ordinance during a work session Tuesday and appeared to favor a three-year program that would give developers a break on increased property taxes in exchange for their investment in the city.

Under the proposal, the developer or property owner would continue paying taxes on the original assessed property value for three years. After the third year, 100% of the new assessed value would be due.

“We have at least three jobs that are waiting right now,” Frye said. “They ask us on a weekly basis what’s going on with the LERTA.”

Council and city officials have been working on the program since publicly discussing it in November. They created the 19 zones in places that include Penn, Clay and Magee avenues and the Division Street area.

“Three years is plenty, I think,” said Mayor Curtis Antoniak. “It’s going to pay off down the road.”

Jeannette City School District and Westmoreland County officials must approve the LERTA before developers can request the tax exemption. Taxes will not be reduced through the program.

Construction work, whether it be renovations or new development, should not start until that approval process is finalized, solicitor Tim Witt said.

“Anybody looking to take advantage of the program needs to make sure their application is received by the city with their building permit and no work is started,” he said.

Several other municipalities around Westmoreland County have LERTA zones, including East Huntingdon, New Stanton and Scottdale. The LERTA status on a property would be transferred in the event of ownership change, Witt said.

Council initially was considering a five-year LERTA program that would have required developers or owners to pay an increasing portion of property taxes annually. But the group changed course after school Superintendent Matt Jones suggested a reduction to three years. The district, like many across Pennsylvania, is facing budget cuts and unknowns, and the program could help boost coffers.

“If we can create a foundation of commercial development in the city, then we know we’ve got a foundation” and can make solid budget projections, Jones said.

He suggested creating LERTA zones for residential areas, too, an idea that Witt said would be similar to the current proposal. Council already has discussed that option and may want to continue to do so, Witt said.

Once the program is finalized with buy-in from all three taxing bodies, developers would need to submit their LERTA requests with building permits before any work begins. The applications will be handled administratively.