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Resolution supports creation of tax-free zone for Westinghouse
Friday, December 29, 2006

A resolution adopted yesterday by Butler County commissioners supporting the possible creation of a tax-free zone in Cranberry was the outgrowth of a closed-door meeting convened last week by Westinghouse Electric executives at the company's Monroeville campus.

Similar resolutions are expected soon from all of the taxing bodies involved in Westinghouse's pending decision to expand in Cranberry or at its current headquarters in Monroeville, said company spokesman Vaughn Gilbert.

"Our indications are that the [tax incentive program] would be accepted by all the parties. That is essential to the process,'' Mr. Gilbert said yesterday.

He confirmed that Westinghouse executives convened separate meetings Dec. 19 with contingents from Allegheny County and Butler County to discuss the company's expansion plans. He said both groups were told a final decision would be made by March 15, though he said the company hopes to come to a quicker conclusion.

The resolution adopted yesterday by Butler County Commissioners was drafted by Cranberry Manager Jerry Andree in response to a specific request from the company and representatives of the governor's office. Copies are to be adopted by Cranberry supervisors and the Seneca Valley School District at separate public meetings Jan. 2 and Jan. 8, respectively.

While the resolution does not guarantee Westinghouse that each of the taxing bodies will ultimately approve the creation of the Strategic Development Area that has been promoted by the state for Westinghouse, it pledges consideration of the 15-year tax-free zone and commits "to work cooperatively and timely with each other ... and Westinghouse."

Both the state House and Senate gave their overwhelming support to the tax incentive program and Gov. Ed Rendell signed the legislation establishing the special district in November as an inducement to Westinghouse to pick Pennsylvania for a planned expansion of its nuclear business. The firm already employs about 3,000 in Monroeville and between 1,000 and 2,000 more jobs are to be added as part of the company's expansion plan.

For the development district to work as envisioned, though, all taxing bodies including the county, school district and local municipality must sign on to the program. The state has agreed to relinquish receipt of sales taxes, corporate net income taxes, and capital stock and franchise taxes.

Mr. Andree said he has heard indications from elected officials and administrators that most of those in Butler County who would be asked to vote on the tax-free program would vote in favor.

"We've been dealing with the governor's economic people for months and we all understand the importance of keeping Westinghouse in Pennsylvania. We're all on the same page here. There's little decision to make,'' he said, noting he believes there would be unanimous support from Cranberry supervisors though the township has never before enacted a tax-incentive program for any business.

Likewise, Monroeville spokesman Joel Palaschak said municipal staff and officials of Gateway School District have been discussing the Westinghouse plans and "I know Monroeville has been doing what it can to keep Westinghouse here."

Monroeville council's next public meeting is Jan. 9. Mr. Palaschak said an agenda has not yet been drafted so he doesn't know whether a resolution regarding the district will be presented.

Government and economic leaders from Allegheny and Butler counties were invited to separate meetings with Westinghouse officials Dec. 19, during which they were asked to approve resolutions of support by Jan. 15.

The company had confirmed earlier this month that it had narrowed its search to two possible sites: Cranberry Woods in Cranberry and its existing corporate campus in Monroeville.

Though officials from Allegheny County have been vocal in demanding that Westinghouse remain and expand in Monroeville, counterparts to the north have been careful to make no public statement that could be perceived as competitive in tone.

In fact, the resolution approved yesterday by Butler County commissioners notes: " ... [T]his resolution shall not be considered as any attempt to attract Westinghouse Electric Co. from its current location in the Municipality of Monroeville, but, is in response to the Westinghouse Electric Co. and the Commonwealth of Pennsylvania request to allow the site selection process to move forward to stay in southwest Pennsylvania."

First published on December 29, 2006 at 12:00 am
Karen Kane can be reached at kkane@post-gazette.com or 724-772-9180.
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