Basalyga appeals property values to save on taxes

Borys Krawczeniuk, The Times-Tribune, Scranton, Pa.
Updated ·3 min read

Oct. 11—Developer John Basalyga is seeking lower taxes on some of his highest-profile projects.

Forms appealing their assessed values say Basalyga's real estate holding companies will provide the values they seek with justification at appeal hearings, but they want the assessed values reduced on 10 properties starting next year.

The 10 properties' taxes total $521,852.07, based on current city, school district and Lackawanna County tax rates and county valuations.

Basalyga said his financial staff determined the property assessments are too high "if you look at the comparable (properties) and look at the appraisals."

"The property taxes are out of control," he said.

The hearings before the county Board of Assessment Appeals are scheduled for Oct. 25 at 2 p.m.

The properties are:

—Parodi Scranton, 1015 N. Main Ave., Scranton, the three-story, brick former cigar factory he converted to 41 one- and two-bedroom apartments. Current assessed value: $578,650. Current tax bill: $155,018.26.

In this case, county assessors increased the property's assessed value in June from $64,725 once the conversion from factory to apartment building was completed.

The nine-fold increase in the valuation threatens to make the project unprofitable, Basalyga said.

—Former warehouse, 300 Brook St., Scranton, four parcels, two with buildings, two just land. Current total assessed value: $137,600. Current tax bill: $41,556.46.

—Former Tink's bar and restaurant, 515-517-519 Linden St., Scranton. Current total assessed value: $125,000. Current tax bill: $44,029.97.

—Former Southern Union headquarters, 417 Lackawanna Ave., Scranton. Current total assessed value: $408,100. Current tax bill: $121,928.30.

—Rock Creek Corporate Center, 1444 E. Lackawanna Ave., Olyphant, two parcels. Current total assessed value: $325,000. Current tax bill: $67,677.12.

—The Shoppes at Rock Creek, 1446 E. Lackawanna Ave., Olyphant. Current total assessed value: $138,000. Current tax bill: $28,728.06.

Basalyga also wants a reduction in the assessed value of Electric City Parking, the massive downtown Scranton parking garage he acquired in August 2016 as part of a complex deal with the city, the Scranton Parking Authority and the National Development Council.

The garage's current assessed value is $200,000 with a total tax bill of $62,913.90.

It's the second time Basalyga has sought a reduction in the assessed value of the parking garage.

The last time was in 2018. Basalyga succeeded in getting the value reduced from $503,150 to $200,000 starting in 2019.

JBAS, Basalyga's company, remains in county court appealing the new assessed value of The Roosevelt, a former elementary school in Archbald that Basalyga converted to 19 luxury apartments. The county assessor's office increased the value to $275,000 from $25,000 in July 2022 after the building opened. JBAS appealed and the assessment appeals board lowered the value to $196,000 in November 2022. Unhappy with that, JBAS appealed to county court.

Patrick Tobin, the county assessment director, could not specifically comment about Basalyga's appeals because they're pending, but said lengthy monthly lists of appeals symbolize how out of whack the county's assessments are. County assessed values are tied to 1968 values and the county has a company, Tyler Technologies, collecting data to update values by 2026.

"What reassessment is going to do is it's going to bring everybody to market values," Tobin said. "That way, everyone will be taxed fairly. Some people are overpaying and some people are underpaying. Hopefully, reassessment will cut down on appeals."

Contact the writer: bkrawczeniuk@timesshamrock.com; 570-348-9147; @BorysBlogTT on Twitter.