The Herald, Sharon, PA Published Friday, April 18, 2003

Marketing tools proposed
for Gateway Commerce Park

By Joe Pinchot
Herald Staff Writer

As Hermitage officials prepare a marketing plan for the Gateway Commerce Park along South Hermitage Road, they hope that tax abatements and low-interest loans will be part of the package.

City officials approached the commissioners Thursday and asked them to add the technical park to the Shenango Valley Enterprise Zone and the city's tax abatement district.

If commissioners go along with the zone request, the city would have to officially ask the zone committee, with the communities that make up the zone having the final say, said Assistant City Manager Gary M. Gulla.

The zone offers low-interest loans for construction and equipment for projects that will create jobs.

The school board and county also would be asked to go along with the tax abatement plan, although solicitor Thomas Kuster said he believed the city could abate its property tax levy without the school district and county forgoing theirs'.

The school board and county have not been approached with the idea, Gulla said.

The city and county offer total tax abatement for three years, followed by a 75 percent abatement in the fourth year, a 50 percent abatement in the fifth year and a 25 percent abatement in the sixth year.

The school district offers only a three-year abatement: 50 percent the first two years and 25 percent the third year.

The abatements are good for improvements, such as construction of a new building or addition to an existing building.

Commissioner Larry Gurrera said he thought the plan was a good idea.

"It would be a hell of a kicker," he said.

But Commissioner Joe Augustine said he's against the abatement.

"If you want tax abatements, go down on Broadway," he said, referring to the core tax abatement district.

"We have to use every tool we can to get this thing (Gateway) working," Gurrera said.

"That's a tool I don't like to use," Augustine responded.

"I'd go along with it," said Commissioner Sylvia Stull. "I think it's a good way to go."

The city would have to hold a public hearing before it could amend its tax abatement ordinance.

The park, on the former Chadderton Airport property, is about 116 acres and has one tenant, Radiology Associates.

Rudzik Excavating of Struthers, Ohio, is building roads, sewer lines and landscaping, and utilities also will be extended to prepare for development.

A walking trail also will be built for use by residents.

The project is funded by the city, the state through its Capital Budget program, and KAKE Development Corp., a corporation established by Fred George of George-White Properties.

Gulla described the park as a partnership with KAKE, and the city has agreed in principle to sell 10 acres to KAKE, giving each side ownership of half the park.

KAKE and the city will work with Penn-Northwest Economic Development Corp. to market the park.

Officials hope the park will attract businesses such as computer hardware and software companies, offices, research firms and laboratories.



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