Blairsville Borough council receives feedback on proposed LERTA ordinance | News | indianagazette.com

2022-07-21 04:53:31 By : Mr. Lake Li

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Mixed clouds and sun with scattered thunderstorms. High 83F. Winds W at 10 to 15 mph. Chance of rain 40%..

Clear skies. Low 66F. Winds WSW at 5 to 10 mph.

Blairsville Borough council paused its regular meeting Tuesday to host a public comment hearing for the borough’s proposed LERTA tax abatement ordinance.

Council president John Bertolino opened the floor for public comment to discuss the specifics of the proposed ordinance and any changes that could be made. The hearing yielded a number of potential revisions to the drafted ordinance, and council will advertise for another public comment hearing after finalizing a new LERTA draft.

According to Byron Stauffer, executive director of the Indiana County Office of Planning and Development, LERTA legislation “allows for the temporary abatement of taxation on improvements that are made to qualifying properties that meet whatever criteria (the council) sets forth under the program.”

Basically, capital improvements that raise the assessed value of a property, whether residential or commercial, may qualify that property for tax abatement over a specified period of time.

At the time of the hearing, the borough’s proposed LERTA ordinance had a 10-year time frame, with tax abatement decreasing by 10 percent each year, and a $50,000 threshold to qualify for the program. Modular homes did not qualify for the program, and there were no application fees.

Although homeowners/developers would have to spend $50,000 in property improvements to qualify, tax abatement would apply only to the assessed value of the property improvements.

In other words, if a homeowner spent $50,000 renovating a $100,000 home, and the home’s assessed value increased to $140,000, LERTA tax abatement would apply only to the $40,000 increase in value — not the total amount spent on improvements or the total assessed value of the home after improvements.

“That $50,000 is only the threshold to get into the program,” said borough solicitor Patrick Dougherty. “ If, after construction, you spent $50,000, but your assessed value (is) only $40,000, you’re still going to get the abatement, (but) it’s just going to be on that $40,000.”

Dougherty explained that because council cannot control properties’ assessed values, their ordinance should focus on the amount of money property owners must spend to qualify for the program.

“I don’t want you to get caught up on meeting the threshold of the program versus what the assessed value increased to, because we don’t control the assessed value,” Dougherty said. “What we can control is telling the property owner, ‘you have to spend X to qualify for our abatement program.’”

Bertolino said the council’s primary goal in wanting to adopt a LERTA ordinance is to encourage new development in the borough, “whether it’s fixing distressed properties or building new construction.” He emphasized that the LERTA ordinance is meant to apply to larger-scale projects rather than general maintenance.

William Sanders, who moved to Blairsville roughly three months ago, asked why council won’t extend tax abatement to smaller-scale projects.

“With the economy the way it is, why are you so concerned on ... putting a cap on the program,” Sanders asked. “I’m a father, got five children; I’m trying to improve two properties and hopefully purchase another property. ... Why is it such a big issue if I spend $5,000, $10,000 getting some kind of a tax break? If you’re trying to appeal right now, I don’t see anybody in the downtown area that can go spend $50,000 with the given economy.

“Like nobody’s painting because they can’t afford it. Nobody’s making the improvements because they can’t afford it. I mean people aren’t even cutting their grass because they can’t afford it.”

Other residents echoed Sanders’ sentiments, suggesting that such a high threshold would eliminate people who renovate their own properties and low-income residents from the program.

For instance, with some homes in the borough costing around $30,000, if a homeowner made $30,000 worth of repairs, doubling the property’s value, that property would still not qualify for the council’s proposed LERTA ordinance.

Council members suggested a few ways to resolve the issue, such as decreasing the LERTA threshold or having separate thresholds for residential and commercial properties. But Bertolino emphasized again that the ordinance is meant to target large capital improvements, not maintenance projects.

“I wouldn’t go below (a) $25,000 (threshold),” Bertolino said. “Our encouragement, again, it’s not for remodeling. This is to fix distressed properties.”

During the regular borough council meeting Tuesday, council members unanimously approved authorizing Dougherty to draft a letter of understanding outlining the borough’s commitment to turn the Murphy lot, a vacant lot at East Market and South Stewart streets where the former G.C. Murphy building once stood, into a public park.

The Blairsville Development Community Authority (BCDA) purchased the property in 2018 for potential development. But after six months of surveying and four community meetings in 2021, Blairsville residents indicated that they’d rather see the vacant lot turned into a park.

“If you went back to that particular survey, there was a question that said, ‘What is the (Murphy lot’s) intention after seven years in the community,’” Janusek said. “Unanimously, (residents) said to keep it as a park. ... I mean, there was no one in the survey, there wasn’t even a percentage of people that wanted to see it turned into a business, a high rise or a parking lot.”

The Murphy lot is classified as a green space, which restricts building permanent structures on the property for seven years. The BCDA, in collaboration with the Indiana County Office of Planning and Development, gathered community input and established a multi-tier group, including a fundraising committee, to fundraise for the goal of building a park in the green space.

“So, currently, BCDA has approximately $15,000 in money that has been fundraised specifically for the development (and maintenance) of a park for the Murphy lot,” said BCDA member Jennifer Nadzadi.

Nadzadi said fundraising has been difficult due to donors not knowing what will happen to the lot after the green space restrictions end.

Nadzadi outlined a two-pronged plan to turn the Murphy lot into a permanent public park.

“First, the BCDA would establish the Murphy lot as a park by dedicating it under the Donated and Dedicated Property Act (DDPA),” Nadzadi said. “Second, the BCDA, in coordination with the borough, would put the Murphy lot parcel into a public trust. The Murphy lot would then be under the borough’s authority at that point.

“The park development would be coordinated by a development committee and the borough to minimize long-term maintenance cost, and the development cost would continue to be part of the fundraising efforts of the development committee.”

Nadzadi said the parcel is not large and should be easily managed. And by complying with the DDPA, which utilizes the public trust doctrine, future borough councils would have a difficult time disposing of the property or transforming it into something else, Nadzadi explained.

In other matters Tuesday, council members:

• Discussed the National Night Out, hosted by the Blairsville Borough Police, which will take place from 6-8 p.m. Aug. 2 at the Blairsville Diamond. The event will include emergency vehicle tours, a meet-and-greet with local first responders, DJ Keith Davis, bounce houses, face painting and Kona Ice. The Blairsville Fire Department will be selling food.

• Approved hiring Ian Swanson, 23, as a full-time police officer.

• Discussed working with Blairsville’s American Legion Auxiliary to better preserve and maintain military banners posted around the borough.

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