City, school officials challenge tax assessment of FedEx property

David L. Dye, The Herald, Sharon, Pa.
·3 min read

Jan. 11—HERMITAGE — Local city and school officials believe the recently-developed FedEx property in Hermitage is worth more than its current assessed value, and plan to challenge the assessment.

The 25,000 square-foot FedEx distribution center, located at 2978 S. Hermitage Road, Hermitage, opened for business last fall.

According to information from Mercer County's Assessment Office, the 40-acre property — formerly the site of Tam O'Shanter Golf Course's driving range — was originally assessed at $9,000.

Following the property's redevelopment, which included the distribution center and other additions, the property was reassessed at a total of $2,632,000.

According to the Mercer County Tax Parcel Viewer, the property was purchased on May 10, 2022, for $2,445,600.

However, officials with two of the property's taxing bodies, the Hermitage city and school district, don't believe that reassessment truly reflects the current value of the land, Hermitage City Manager Gary Hinkson said.

"Before, it was basically just a parcel of land, and now it has improvements on it, like the building, the parking lot, et cetera," Hinkson said.

In prior property assessment appeals throughout Hermitage over the years, property owners often sought out reassessments by the county.

These reassessments usually resulted in lower property values, and thus lower taxes to be paid by the property owners. The reassessments were then challenged by the city and school district in court.

Mercer County's last county-wide reassessment was in the 1970s. A new reassessment is expected to begin later this summer, with the new values to take effect in 2027.

But in the case of the FedEx property, Hinkson said the reassessment was triggered by the large-scale development that took place on the property.

Once the development was complete, county officials initiated the reassessment to determine the property's new value.

"If you owned a lot and built a house on it, the county would come out and do an assessment. That's pretty much the same thing that happened here," Hinkson said.

At their December meeting, the Hermitage Board of Commissioners voted unanimously to retain Tony Giglio, Esquire, to represent the city in the property assessment appeal.

Giglio will also represent the Hermitage School District in the appeal. Hermitage school Superintendent Dr. Dan Bell said the school board is expected to vote on retaining Giglio at their January meeting.

The cost for Giglio's services will be shared between the city and school district, with the division based on the property tax revenue each entity would receive.

This means the school district will cover 92.5% of the cost for Giglio's services, while the city will cover 7.5%, Bell said.

"We had the same questions about the assessed amount as the city, and when we spoke with our legal counsel, it was recommended we appeal the assessment," Bell said.

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