TOWNSHIP OF SADSBURY – The Township of Sadsbury Supervisory Board has rejected a request to consider passing a real estate tax break to help a mixed-use commercial and residential development project for a large vacant lot on the east side of the lake Conneaut.
Members voted 3-0 on Tuesday against passing a Local Economic Revitalization Tax Assistance (LERTA) ordinance for the township at present.
Under Pennsylvania law, an LERTA program can be implemented by ordinance or resolution for certain deteriorated industrial, commercial, and other commercial property, and for new construction in deteriorated areas of economically disadvantaged communities.
With an LERTA, property taxes on improvements to a property are exempt for a specified period on a sliding scale. Taxes are levied on a percentage, usually 10 or 20 percent, until the full property tax collection rate is reached. The LERTA only applies to the newly assessed value after the improvements have been made.
Real estate developer Todd Joseph had asked township supervisors on their Sept. 14 to pass an LERTA ordinance to help a mixed-use and residential commercial development he is planning on 18 acres of land at Iroquois Road and Highway 18. Joseph told supervisors that an LERTA program would help his project and drive the development and redevelopment of properties in the township.
Township supervisors filed an action on the issue at their September meeting, but suggested that Joseph also propose LERTA to the Conneaut school board. The school board should not act on the matter until at least November after a review by its lawyer.
Preliminary plans for Joseph’s development had still not been submitted to Sadsbury Township on Tuesday, supervisors said.
Joseph briefly described the project at the supervisors meeting on September 14. The proposed development would include 56 single-family homes and 24 one-bedroom apartments or condominiums with a mixed-use commercial building. Joseph said the project would be marketed to people 55 and older.
“It doesn’t meet the LERTA criteria, so I think it’s not valid,” President Lyle Hoovler said ahead of Tuesday’s vote to deny the idea of ââenacting an LERTA in the township. Other supervisors Bonnie Smith and Kevin VanHonk have agreed that the township should not adopt LERTA at this time.
Tribune’s messages to Joseph for comment by phone and text were not returned on Tuesday.
Joseph, whose limited liability company Keldon Holdings LLC bought Conneaut Lake Park in March, bought the Iroquois Road and Route 18 site in August through another limited liability company he owns . The site was purchased for $ 230,000 by KLR Assets LLC, according to county property records.
Keith Gushard can be reached at (814) 724-6370 or by email at [email protected]