The Herald, Sharon, PA Published Thursday, April 24, 2003

Tax break gateway opening slowly

By Joe Pinchot
Herald Staff Writer

Hermitage commissioners have decided to slow a proposal to add Gateway Commerce Park to the city's tax abatement district.

Commissioners had agreed at a recent work session to allow the matter to come to a vote Wednesday, but City Manager Gary P. Hinkson asked for more time to study the idea.

Hinkson asked to have the question put to the Hermitage Economic Development Commission and allow it to make a recommendation to the commissioners.

"I think we need to make sure what we're doing is what we want to do," he said.

Hinkson said the current tax abatement district is in the industrial area and adding Gateway to it would make a number of other kinds of land uses eligible for tax abatement.

Solicitor Thomas W. Kuster said tax abatements generally are to encourage opportunities to create jobs.

"Not all of them (land uses) would necessarily be job-creating businesses," Hinkson said.

In a tax abatement district, commissioners could not pick and choose which businesses get the abatement, he said. Any business within the district would be eligible.

Gateway, along South Hermitage Road, is in a zone that allows a number of uses, even though officials hope that it will attract computer and other high-technology firms, research and medical firms and laboratories.

Commissioners said they hope Gateway creates good-paying jobs for all of the Shenango Valley.

"We need to protect ourselves from anybody coming in and not creating good-paying jobs," said Commissioner James P. "Pat" White.

Hinkson said officials had discussed changing the zoning to conform with Gateway's marketing plan, which hasn't been formulated.

"We're on the right track," said Commissioner Larry Gurrera. "We might want to fine-tune it."

Commissioners agreed to proceed with another proposed marketing tool for Gateway: Asking the Shenango Valley Enterprise Zone Corp. board to include the 117-acre technical park in its borders, which would make businesses that locate in the park eligible for low-interest loans.

Also Wednesday, commissioners sold 10 acres of the park to KAKE Development Inc., the city's private partner in developing the park, for $250,250. 0KAKE was established by Fred George of George-White Properties. With the sale, KAKE and the city each own half of the park.



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