Greensburg expected to approve extension on tax reduction program

Three Greensburg commercial properties have been improved through a tax incentive program during the past 10 years and officials are hoping to attract more participation so progress can continue.

Greensburg Community Development Corp. Executive Director Nancy Ligus is seeking a 10-year extension of the LERTA program, which is set to expire this year. So far, it seems that city council and Greensburg Salem school officials are on board to extend it through 2035.

“The LERTA program has significantly produced results in downtown and attracted new development and supported existing businesses to grow and sustain,” Ligus told council this week. “Those are all hallmarks of good revitalization programs.”

Local Economic Revitalization Tax Abatement programs allow commercial developers or property owners an opportunity to get a break on increased property taxes in exchange for investing in improvements to existing buildings or dilapidated parcels. After a set time period is up, the full tax amount for the new assessed property value is paid.

“It’s available to all commercial property owners and is a temporary tax exemption based on property improvements, specifically for renovations that modify the building’s footprint or is for new construction,” Ligus said. “It’s also financial incentive to the property owner making these improvements to an existing commercial or vacant lot that will significantly raise the assessed property value and allow the owner to continue to reinvest in the property over the abatement period.”

Greensburg’s program calls for a 10-year abatement on property taxes. During that time, the property owner pays 10% of the difference in taxes between old and new assessed values, Ligus said. That 10% is split proportionally among the three taxing bodies: city, school district and county.

Since 2017, apartments at 112 College Ave. have replaced blighted properties, a medical marijuana dispensary has taken over what was an empty lot and dilapidated building on East Pittsburgh Street and Beeghly & Company Jewelers has expanded its building on South Main Street. Tax abatement periods end in 2026, 2028 and 2030, respectively, Ligus said.

“Once the property would exit the program, all the taxing bodies fully capitalize on the new higher assessed property value,” she said.

The program has been positive for the community, said Greensburg Salem Superintendent Ken Bissell.

“I know there’s only been three properties so far, but when those properties are done with their 10-year, the value that will come back is going to be a lot better for the whole community and for us — the revenue on that property will be better also,” he said. “It’s giving up a little now to benefit later, so I’m supportive of it.”

Ligus plans to attend September’s school board meeting to discuss the request and district officials have already met with her.

A bill extending the program’s duration is expected to be introduced by city council Monday.

“We’re not going to have any problem with it at all,” Mayor Robb Bell told Ligus this week.

A unique facet to Greensburg’s LERTA program helps multiply the economic impact.

Of the remaining 90% difference between assessed values, 75% of that amount goes into the GCDC’s Greensburg Revitalization Fund and the applicant keeps the rest, Ligus said. That has helped the GCDC invest about $150,000 into building renovations, facade improvements, modernized lighting and other projects through a grant program for property owners and developers.

Known as the G-Fund, money has been directed to projects by City Cribs, the Westmoreland Bar Association, the Troutman building annex and McDowell Associates, among others.

Staff writer Quincey Reese contributed.