HERMITAGE Panel to look at tax abatement plan

The city plans to allow only high-tech companies into the abatement area.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
HERMITAGE, Pa. -- City commissioners are looking at a tax abatement plan they hope will help attract developers to LindenPointe, the city's planned technical park on South Hermitage Road.
The commissioners voted Wednesday to introduce the abatement ordinance covering 71 of the park's 115 acres.
It would offer a 100-percent break on city property taxes on new construction for a period of five years, followed by a 75-percent break in the fourth year, a 50-percent break in the fifth and a 25-percent break in the sixth year.
Mercer County is expected to offer the same break on county taxes but the Hermitage School Board is expected to offer a lesser deal, if it offers any.
The school board favors a three-year abatement program offering a 50-percent break in the first and second years and 25 percent in the third.
The ordinance goes to the city planning commission for review.
Hermitage owns half of the park and KAKE Development Co. of Hermitage owns the rest.
The abatement would cover about 43 city acres and about 28 acres of KAKE land.
Companion ordinance
In a related move, the commissioners introduced a companion ordinance that sets up some stringent guidelines on just what type of high-tech businesses are eligible to locate in the abatement area.
General offices would be ruled out. Electronic manufacturing, data processing equipment, computer software and hardware, communication and navigation equipment, radio and television equipment, scientific and medical instruments, precision optics, robotics, research labs, pharmaceutical production and corporate offices of at least 15,000 square feet would be acceptable.
That ordinance was also sent to the planning commission for review.
In related matters, the commissioners:
UApproved a seven-lot subdivision for KAKE in the park, ranging in size from 1.5 to 3.3 acres per lot. Three of those lots are in the proposed tax abatement area.
UApproved a land development plan for the construction of an 8,000-square foot building on one of those three lots. SEED Inc., Subscribers Encouraging Economic Development, a local, private development group, will put up the building and has a prospective high-tech tenant for the site.