School board to vote on renewing tax incentive program for Greensburg developers

Greensburg Salem school board will vote next week on renewing a tax incentive program intended to encourage commercial developments in Greensburg.

The LERTA — Local Economic Revitalization Tax Assistance — program is a 10-year property tax abatement available to those building new developments or expanding the footprint of existing ones, said Nancy Ligus, executive director of the Greensburg Community Development Corp.

Three properties have qualified for the program since its inception — apartment buildings at 112 College Ave., the Sunnyside Medical Cannabis Dispensary at 303 E. Pittsburgh St. and Beeghly & Co. Jewelers at 401 S. Main St.

During the 10-year period, qualified property owners pay yearly taxes against 10% of the difference in taxes between old and new assessed values, Ligus said. Of the remaining 90% difference between assessed values, 75% goes into the GCDC’s Greensburg Revitalization Fund, used to improve the city’s storefronts and infrastructure.

After the properties exit the program, all three taxing bodies — the school district, Greensburg and Westmoreland County — receive the full property tax rate based on the new assessed value.

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About $157,500 was directed to nine property revitalization projects — including at the Westmoreland Bar Association, the Troutman Building, Cutie’s Coffee and Wicks & Wax Studio, Ligus said.

Nearly $7,000 was given to the Westmoreland Land Bank.

“What we’re showing here is how significant this program has been to produce results in downtown Greensburg in revitalization, new development and supporting existing businesses,” Ligus said. “These are all really very valuable hallmarks of revitalization programs.”

GCDC renews program push under new leadership

School board member Frank Gazze expressed concern that only three projects have taken advantage of the LERTA since its inception.

Ligus, hired in March, said recent turnover in the GCDC’s leadership is partially to blame. She is the fifth person to head the nonprofit since 2015, when then-executive director Steve Gifford initiated the program.

“Since Steve left, we’ve had a number of executive directors come through the GCDC, so it’s been highs and lows,” she said, “but besides that, I think it’s been a program that Steve had such a good handle on.

“He’s been my mentor in this, which I really appreciate, and I think moving forward, we’re in a better place now having an executive director on board again who gets how LERTA is an economic development tool.”

Gifford said recent efforts to demolish vacant structures — such as the former Advance Furniture building on South Main Street — and open up lots for new developments will increase LERTA possibilities.

“That’s a development opportunity that Nancy and her team will be marketing to people, not just in Westmoreland County, but outside of the area, to come in and hopefully build on this footprint.”

School board weighs in on LERTA

Gazze said he would support the program’s renewal.

“When I look at the great improvements here, there’s some good stuff happening in the city of Greensburg,” he said. “I don’t want to hold you back.”

School board member Tyler Courtney said the program is an incentive for developers to come to Greensburg.

“I’m personally in favor of it,” he said. “These cities have so much trouble driving economic development.”

Brian Conway, who serves on the school and GCDC boards, sees the program as a long-term investment in Greensburg — and in turn the district.

“When I first got on the GCDC board and I started looking at this LERTA program, I was like ‘Well what is this? Why are we giving up tax revenue?’”

He continued: “We’re still getting the same tax revenue that we’ve always gotten from that property. Whatever it increases in value…we get a little bit of that increase, and then after 10 years, we get all of it at that point.”

The school board will vote on the matter at its next meeting, scheduled for 7 p.m. at Greensburg Salem Middle School. City council and Westmoreland County commissioners also have to vote to renew the program.