Jeannette extends tax break program for commercial properties

A five-year extension on a tax break program for commercial properties in Jeannette has been approved by city council.

Now, Jeannette City school directors and the Westmoreland County commissioners have to follow suit for the Local Economic Revitalization Tax Assistance, or LERTA, program to continue.

It was established in Jeannette three years ago to allow developers the opportunity to get a break on increased property taxes in exchange for investing in the city.

No one has taken advantage of it so far, said City Manager Ethan Keedy.

But there are a few properties that could benefit from it in the future, as long as the other taxing bodies approve extending it for five more years. That includes the now-vacant land previously home to the old Fort Pitt Brewery, which has been demolished, he said.

“There’s a lot of potential for new development now,” he said.

Jeannette’s LERTA originally was established for three years. Property owners in certain areas that qualify for the program would continue paying taxes on the original assessed property value during that time. After that time period is up, the developer will begin paying the full tax amount for the new assessed property value.

There were applicants for the program over the past three years, but Keedy said the projects were more cosmetic improvements that didn’t meet the requirements.

To qualify, a project has to be big enough that it would trigger a property tax reassessment, such as a new building or substantial improvements to an existing one.

In addition to the former Fort Pitt Brewery property in West Jeannette, officials said the program could help with expected construction at a lot at South Fourth Street and Chambers Avenue and a new business being considered for an empty lot on Clay Avenue.

“These are the ones that we know that there’s interest in at the moment,” Keedy said. “This LERTA ordinance is a huge attraction for somebody to build.”

Jeannette City School District Superintendent Matt Jones said the matter will be discussed at Monday’s school board meeting. Directors understand that when the city does well, that means increased opportunities for the school district, he said. The board approved the program when it first was proposed a few years ago.

“That was seen as a long-term attempt to create stability in the district, by the district I mean the city,” Jones said.

Jeannette also has a residential LERTA that provides incentives for building homes on vacant lots in certain areas.

Several other municipalities around Westmoreland County have LERTA zones, including East Huntingdon, New Stanton and Scottdale. Greensburg city council and Greensburg Salem school directors recently approved extending a commercial LERTA there for 10 years. Three applicants qualified for the program during its first 10 years.