HERMITAGE, PA. Official: Park needs high-tech businesses

The tax-break offer is also expected to include stricter zoning regulations.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
HERMITAGE, Pa. -- City commissioners may be willing to extend a property tax break program to new construction in the LindenPointe business park, but they don't want just anyone moving in there.
City Commissioner Joseph Augustine said he wants to see high-technology companies build in the 117-acre park off Pa. Route 18.
He doesn't want small doctor or dentist offices moving there to take advantage of tax breaks, he said during a public hearing Monday on setting boundaries for a new property tax abatement district in the park.
As it stands now, "Anyone can move up there," Augustine said.
That's why the Hermitage Economic Development Commission, an advisory group to the city commissioners, recommended some additional zoning restrictions for the tax abatement area, said Gary Gulla, assistant city manager.
The city can enact zoning regulations that limit access to the new tax abatement area to technology companies, he said.
Hermitage has four property tax abatement areas in the Broadway Avenue industrial corridor.
The city and Mercer County offer a six-year abatement plan of 100 percent for the first three years, 75 percent in the fourth, 50 percent in the fifth and 25 percent in the sixth.
The Hermitage School District offers a three-year abatement package in those areas of 50 percent for the first and second years and 25 percent in the third.
City Manager Gary Hinkson said the city is looking at offering the same tax break in part of LindenPointe.
The city owns 58 acres in the park and KAKE Development Inc. of Hermitage owns 59.
There's only one tenant there so far, Regional Cardiology Associates, and offering tax abatement would be an incentive for others to come in, Hinkson said.
The plan presented Monday shows that 60 percent of the park would get abatement and an accompanying more stringent zoning regulation.
The abatement area would cover about 43 acres of city-owned land and about 25 acres of KAKE land, Gulla said.
Marcia Hirschmann, city director of planning and zoning, said zoning regulations for the site allow professional offices there and that's something Augustine and Commissioner Bill Scanlon don't want.
Job-producing high-technology companies are the targeted developers and the city should stick to that plan, Augustine said.
"Office buildings -- no way should they be in that area," Scanlon said.
Commissioner Pat White agreed that high technology is what the city wants.
"We don't want doctors from Kerrwood moving over there," he said. A large number of doctors' offices are on Kerrwood Drive.
Tough zoning restrictions for the abatement area need to be in place before abatement is offered, he said.
Hinkson said the city is working on new zoning regulations that could eliminate things such as individual professional offices from the area.
Commissioners can enact both that change and tax abatement at the same time, he said.
The abatement plan has the support of Penn-Northwest Development Corp., Mercer County's designated lead economic development agency.
Larry Reichard, executive director, said it "puts another tool in the toolbox" of economic development.