LECOM agrees to payments in lieu of taxes for former Porreco Center property in Millcreek
Lake Erie College of Osteopathic Medicine will make voluntary annual payments in lieu of taxes to the Millcreek Township School District and Millcreek Township for the former Porreco Center property on West 38th Street.
The agreement, approved by the Millcreek Township School Board on Monday and by Millcreek Township supervisors in December, settles their appeals of the property's tax-exempt status filed in the Erie County Court of Common Pleas in 2021.
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Under the agreement, LECOM will pay the Millcreek Township School District about $14,000 each year for three fiscal years retroactive to July 1, 2022, according terms of the agreement. The amount is 35% of what the taxes would be for the property, based on its assessed value and the district millage rate.
Millcreek School Director Mike Kobylka voted against the agreement Monday, saying the district has been working toward nonprofits contributing 50% of what their tax bill would be for properties that are tax exempt.
"I don't believe 35% is a fair amount," Kobylka said. "I'm glad we have the PILOT, don't get me wrong. But I disagree with the amount."
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The School Board approved the agreement by a 7-1 vote. School Director Jason Dean was absent.
LECOM will pay Millcreek Township about $5,976 and $6,648 in the first two years of the three-year agreement retroactive to Jan. 1, 2022. The amount, again, is 35% of what the taxes would be for the property, based on its assessed value and the township millage rate.
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Township supervisors unanimously approved the agreement Dec. 20.
The township appreciates LECOM's decision to make voluntary payments to the township in lieu of taxes and appreciates its relationship with the medical school, Supervisor Kim Clear said in a statement Monday.
"The Lake Erie College of Osteopathic Medicine brings a diverse and educated population to Millcreek," Clear said. "It is an absolute asset to the community."
LECOM bought the 26-acre Porreco Center property from Edinboro University of Pennsylvania for $3.2 million in July 2021. The property includes four parcels, including the Red Barn classroom building, the Mary Porreco house, parking lot, soccer field and vacant land.
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The property provides additional classrooms and outdoor space for student recreation and wellness programs, medical school officials said in a statement after the purchase.
The property had been tax-exempt when it was owned by Edinboro University, according to Erie County property records. LECOM filed applications for tax exemptions after it bought the parcels.
The Erie County Board of Assessment Appeals granted the exemptions on Nov. 3, 2021.
The Millcreek Township School District and Millcreek Township appealed that decision to the Erie County Court of Common Pleas. Both have agreed not to challenge the property's tax-exempt status while the PILOT agreement remains in effect.
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The three-year agreement will be automatically renewed for another three years each time it expires, until 2031, unless any of the parties involved opt out of the agreement. The property will become taxable in 2031, when LECOM could again apply for tax exemption.
Contact Valerie Myers at vmyers@timesnews.com.
This article originally appeared on Erie Times-News: LECOM to make payments in lieu of taxes for Porreco Center property
