UPMC, South Fayette agree to tax deal

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Children's Hospital of Pittsburgh of UPMC will include the South Fayette School District in a tax deal for its planned $20.5 million outpatient pediatric center on Route 50 adjacent to the Interstate 79 Bridgeville interchange.

The site is adjacent to the former Star City Cinemas, now closed.

The Children's Hospital building is expected to contain some nonprofit facilities, but the deal will guarantee that UPMC pays real estate tax on at least half the building's assessed value regardless of nonprofit status.

Township attorney Jonathan Kamin told commissioners Feb. 20 that UPMC officials have confirmed the hospital will pay property taxes to both the township and the schools.

"They would be at least 50 percent taxable to us and at least 50 percent taxable to the school district," Mr. Kamin said.

The school district will be the bigger beneficiary of tax revenues because South Fayette property owners pay about seven times more in school taxes than in township taxes.

The township is proposing a tax rate of 3.48 mills this year, and the school district is considering a rate of 24.6361 mills for 2013-14.

Mr. Kamin said that he and township staff, including manager Ryan Eggleston and engineer Mike Benton, met last week with UPMC representatives to "hammer down" details of a developer's agreement, which will include details of the tax deal.

The agreement could be finalized in late March, he said.

Also, commissioners voted 5-0 last week to authorize execution of a land sales agreement for UPMC to purchase 2.6 acres to build the center.

Tentative closing date is April 5, Mr. Kamin said.

The purchase price is $1.65 million, plus a $100,000 donation to South Fayette if the township converts the theater into a civic center within five years.

The township also was working on an agreement with UPMC that defines the shared use and cost of the driveway and parking lots at Star City, Mr. Kamin said.

Pediatric center plans include a four-story, 60,000-square-foot medical office building with access from Hickory Grade Road and Route 50.

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Andrea Iglar, freelance writer: suburbanliving@post-gazette.com.


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