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Proposed bill challenges tax-exempt property status
Tuesday, December 01, 2009

Allegheny County Councilman Chuck McCullough plans to introduce legislation today challenging the status of all tax-exempt property in the county -- specifically property owned by the University of Pittsburgh Medical Center -- and calling for an embargo on all county bond issuances on behalf of the health provider.

Mr. McCullough, R-Upper St. Clair, said that all three pieces of legislation "are of tremendous importance," in evaluating the activities, contributions and role of nonprofit organizations to county government, the city, and the region.

"We as council members owe the residents of the county no less than our fullest measure of diligence in evaluating the activities of our nonprofit entities. When one acts to the detriment of our residents -- as UPMC has in unilaterally deciding to close the UPMC Braddock Hospital -- we simply must respond," said Mr. McCullough.

But if Mr. McCullough's objective is to leverage the county's borrowing power against UPMC for its decision to close its Braddock facility, county Executive Dan Onorato has consistently said such a move would not be in the interest of the county or its residents.

The county, Mr. Onorato said last month, has a vested interest in borrowing money on behalf of the health provider and other nonprofits like the universities, because those entities could use other government structures as borrowing conduits.

fact, on council's agenda tonight is a request by Mr. Onorato to approve $1,175 billion in bonds to be financed by the Allegheny County Hospital Development Authority on behalf of UPMC "to benefit the health and welfare of the citizens of Allegheny County."

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First published on December 1, 2009 at 12:00 am