Board hears Millennium Park assessment appeal
Oct. 18—(First of two parts)
The Lawrence County Economic Development Corporation's executive director said that pre-existing problems with developing the Millennium Park property were discovered after it purchased the land in the 2000s.
Part of the still-undeveloped tract of more than 300 acres in Neshannock Township lies in a flood zone, there are wetlands, an area of archaeological significance and lead contamination at a former sportsman's association property from skeet shooting. There is no natural gas line to one section of the property, and the site has limited accessibility to Interstate 376. Those are all reasons why marketing the land has been unsuccessful, Linda Nitch told members of Lawrence County's Board of Assessment Appeals last week.
The corporation is seeking a lower assessed value for more than 300 acres of vacant land that is divided into two sections or phases of the never-developed industrial board, for the appeal board's consideration. If granted, the amount of property taxes the corporation would pay to the township, school district and Lawrence County would be reduced from the current total amount of $21,275 to $4,893.
A portion of the northern section, known as Phase II, is currently being leased to Hilcorp Energy for a natural gas well pad and the corporation is receiving payments for it, Nitch said.
According to county chief assessor J.R. Hardester, the current assessed value of Phase 1, involving 73.38 acres, is $440,300 and its current fair market value is $636,271. The economic development corporation is seeking to have the assessed value of that tract reduced to $15,000 and the fair market value lowered to $21,600. The current annual taxes are $12,332 for all three taxing bodies. Should the reduction occur, the taxes would be reduced to a total of $420 per year for all three taxing bodies.
The second and larger section, comprised of 245 acres in multiple parcels, has a lower total assessed value of $319,300, with a total market value of $461,416. The current annual taxes for all three taxing bodies taxes on that section are $8,943. The agency is seeking to have the assessment lowered to $159,700 and the fair market value reduced to $230,750. Should that be granted, the taxes on that tract would be $4,473, almost half of the current rate.
Manolis requested that if the change is granted that it be retroactive to Jan. 1 this year. This is the first year the economic development agency would be responsible for paying taxes on the land.
The appeals board made no decision on the request after Wednesday's lengthy hearing. Instead, the two members attending agreed to review the information and render a decision at a separate meeting at 10:30 a.m., Oct. 25.
Presiding over the hearing were board members Tom Dean, chairman, and member Cheryl Watters-Kelliher. Member Joseph Carofino was absent. According to Hardester, Carofino will not be permitted to vote on the Millennium Park decision because he did not hear the presentation.
Nitch was one of three people providing information to the board about the property Wednesday during a public hearing in the commissioners meeting room. An engineer and an appraiser also attended to answer questions posed by the corporation's solicitor, James W. Manolis.
Solicitors for the three taxing bodies — Jason Medure representing the county, Louis M. Perotta representing Neshannock Township and Michael Bonner for the Neshannock Township School District — also attended and asked questions about the reasons for the requested assessment reduction.
Nitch told the appeals board that the corporation is looking to have its vacant land assessment reduced because the property no longer is tax-free. The Keystone Opportunity Expansion Zone designation, which allowed tax exempt status expired in 2020 and the Neshannock supervisors did not approve the renewal of it by the deadline. Now the corporation, which claims to be marketing the property, must pay the property taxes on it.
Manolis and Nitch had told the appeals board that the access to the site was further limited because Keystone Drive, a road leading into the proposed development, was not ordained and maintained. Nitch said the corporation was negotiating with the township to try to get the road upgraded and ordained.
That was contrary to information provided by Perrotta, who informed them at the hearing the township supervisors ordained the road on June 16.
Typically, the meetings consist of the board members, the county's chief assessor and the property owner appealing to have his assessment and ultimately, property taxes lowered.
The land that the corporation is seeking the assessment reduction for include multiple properties on the two tracts of land, which was purchased in anticipation of a semiconductor plant locating there.
Nitch said the economic development corporation bought the property, coined as Millennium Park, with the hope — but no guarantee — of attracting the semiconductor plant by a company that ultimately chose to locate it outside of Lawrence County.
Nitch said the agency has since made efforts to market the property by placing it on the state and the Pittsburgh Regional Alliance websites, but those efforts have been unsuccessful.
Perrotta asked if the property had ever been put on the market through a realtor, and Nitch said it had not.
Perrotta asked if the corporation has a mortgage on the property. Nitch said the mortgage is with the Commonwealth of Pennsylvania for $3.7 million and it is accruing interest of $72,000 a year. She said no payments have been made on the property except for $150,000 that developer Angelo Medure paid for land where the Steelite building is located.
That property, and the site of a spec building the agency owns and rents to Steelite for offices, are not part of the assessment appeal.
Wednesday's meeting involved easel drawings and nearly three hours of discussions.
When either the property owners or the taxing bodies are dissatisfied with the assessment appeal board's decision, they can appeal it to the Lawrence County Court of Common Pleas de novo, meaning it starts over, with evidence presented again, and new evidence can be offered, he said.
(Next: A look at the history of Millennium Park)
