[Adopted 7-6-1983 by Ord. No. 691]
This article is a Local Economic Revitalization Tax Assistance Ordinance and shall be known and cited as the "North East Borough LERTA Ordinance."
As used in this article, the following terms shall have the meanings indicated:
DETERIORATED COMMERCIAL PROPERTY
Any industrial, commercial or other business property owned by an individual, association or corporation which is located in an investment opportunity area as hereinafter provided.
DETERIORATED RESIDENTIAL PROPERTY
Any multiple-family dwelling or dwelling unit within a commercial/residential structure which is located in an investment opportunity area, as hereinafter provided.
DWELLING UNIT
One or more rooms for living purposes, together with separate cooking and sanitary facilities, used or intended to be used by one or more persons living together and maintaining a common household and accessible from the outdoors either directly or through an entrance hall shared with other dwelling units.
DWELLING, MULTIPLE FAMILY
A building arranged or used as a residence for two or more families living independently of each other and doing their own cooking therein, including apartment houses, flats, group houses, condominiums.
IMPROVEMENTS
Repair, construction or reconstruction, including alterations and additions, having an effect of rehabilitating a deteriorated property so that it becomes habitable or attains higher standards of safety, health, economic use or amenity or is brought into compliance with laws, ordinances or regulations governing such standards and increases its assessments. Ordinary upkeep and maintenance shall not be deemed an improvement.
INVESTMENT OPPORTUNITY AREA
That area, recommended as the proposed LERTA District on Page 110 of the North East Regional Comprehensive Plan update, adopted by North East Borough Council (pursuant to a public hearing) on February 14, 1983, within North East Borough which is eligible for tax exemption under PA Act 76 of 1977 and PA Act 42 of 1977 and PA Act 34 of 1971.[1]
LOCAL TAXING AUTHORITY
North East Borough or the North East School District or the County of Erie, Erie County Pennsylvania.
NEW RESIDENTIAL CONSTRUCTION
Any new multiple-family dwelling or new dwelling unit within a commercial/residential structure built or erected, upon vacant land existing structures, after the adoption of this article by North East Borough Council located within the investment opportunity area.
[1]
Editor's Note: See 72 P.S. § 4722 et seq. and 72 P.S. § 4711-101 et seq.
[Amended 4-3-1995 by Ord. No. 756]
The following specific properties encompass the North East Borough LERTA District, which is generally situated at or near the intersection of Route 20 and Route 89. These properties are delineated by their Erie County Assessment Reference Numbers and any subsequent changes to these properties by replotting of lot lines or subdivision into smaller lots shall also be included in the North East Borough LERTA District.
District
Map
Block
Parcels
35
2
16
12, 13, 14
35
5
27
6
35
5
28
1, 1.01, 2, 3, 4, 5, 6, 7
35
5
29
1, 2, 3, 4, 5, 6, 7, 8
35
8
55
3, 4, 5, 9, 11, 16
35
7
54
10, 11, 12, 14
35
7
53
16, 17
36
2
15
23, 24, 24, 26, 27, 29, 30, 31, 32, 33, 34, 35, 36
36
5
30
1, 3, 4, 5, 6, 7, 13, 14
36
5
31
1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 13.01, 14
36
5
32
1, 2, 30, 31
36
5
33
1, 2, 3, 4, 5, 6, 7, 8, 9, 27, 28, 29, 31, 32, 33
36
5
43
1, 1.0
36
4
6, 7, 8
36
4
36
10.02, 12, 13, 14.01
36
10
38
7, 8, 9, 10, 11
36
10
63
1, 2, 3, 3.01, 4
36
10
62
1, 2
36
10
60
12
36
10
44
4, 5, 6, 7, 8, 9, 10, 11
36
10
41
9, 10
36
11
64
1, 2, 3, 4, 4.01, 5, 13, 14
A. 
The exemption from real property taxes shall be limited to:
(1) 
That portion of the additional assessment attributable to the actual cost of improvements to deteriorated commercial property.
(2) 
That portion of the additional assessment attributable to the actual cost of improvements.
(3) 
That portion of the additional assessment attributable to the actual cost of new residential construction over and above the original assessed value of the vacant land or land which is specifically prepared to receive such new structures.
B. 
In all cases, the exemption from real property taxes shall be limited to that portion of the additional assessment to the improvement or new construction, as the case may be, for which a separate assessment has been made by the Erie County Assessment Office and for which an exemption has been separately requested. No tax exemption shall be granted if the owner does not secure the necessary and proper permits prior to improving the property. No tax exemption shall be granted if the property as completed does not comply with the minimum standards of Chapter 500, Zoning, Chapter 400, Subdivision and Land Development, or other codes of the Borough.
C. 
In any case after the adoption of this article, where deteriorated commercial property or deteriorated residential property is damaged, destroyed or demolished, by any cause or for any reason including the building or erection of new construction and the assessed valuation of the property affected has been reduced as a result of the said damage, destruction or demolition, the exemption from real property taxation authorized by this article shall be limited to that portion of new assessment attributable to the actual cost of improvements or construction that is in excess of the original assessment that existed prior to damage, destruction or demolition of the property.
[Amended 9-8-1987 by Ord. No. 723]
A. 
The exemption from real property taxes shall be according to the following schedule. This exemption shall commence in the tax year in which the improvement is completed which shall for purposes of this article be the year following the issuance of the building permit or, if a permit is not required, in the year immediately following the year in which construction commences unless the owner certifies in writing that the improvement has not been completed. In that event the completed portion of the improvement shall be fully assessed and taxed and the exemption shall commence in the year following the year in which the owner certifies in writing completion of the improvement.
(1) 
Deteriorated commercial property. For the first five years during which the improvement becomes assessable, 100% of the eligible assessment shall be exempted.
(2) 
New residential construction. For the first three years during which the improvement becomes assessable, 100% of the eligible assessment.
(3) 
Deteriorated residential property. For the first five years during which the improvement becomes assessable, the following shall apply:
(a) 
First year: 100% exemption.
(b) 
Second year: 80% exemption.
(c) 
Third year: 60% exemption.
(d) 
Fourth year: 40% exemption.
(e) 
Fifth year: 20% exemption.
B. 
The exemption from taxes granted under this article upon a property shall not terminate upon the sale or exchange of the property.
C. 
If an eligible improvement is granted tax exemption pursuant to this article, the improvement shall not, during the exemption period, be considered as a factor in assessing either other subsequent improvements to the same property or other properties.
A. 
Any person desiring tax exemption pursuant to this article should apply to North East Borough at the time a building permit is secured for construction of the improvement or new residential construction, as the case may be. The application must be in writing upon forms specified by North East Borough setting forth the following information:
(1) 
The date the building permit was issued for said improvement.
(2) 
The location of the property to be improved.
(3) 
The nature of the property to be improved.
(4) 
The type of improvements (commercial, residential or both).
(5) 
The summary of the plan of the improvements.
(6) 
The cost of the improvements.
(7) 
Whether the property has been condemned by any governmental body for noncompliance to laws or ordinances.
(8) 
Verification that the property has been inspected by the Zoning Officer of the Borough and other additional information as may be required.
(9) 
There shall be on the application form for a building permit the following notice:
"Notice to Taxpayer: By North East Borough Ord. 691, 1983, you may be entitled to exemption from tax on your contemplated improvement by reassessment. An application for exemption may be secured from the Zoning Officer or other properly designated official and must be filed at the time the building permit is secured."
B. 
A copy of the exemption request shall be forwarded to the Erie County Assessment Office by the Zoning Officer. The Assessment Office shall determine whether the exemption shall be granted and shall, upon completion of the improvement, assess the improvements and shall otherwise perform its duties as above provided for construction of improvements to residential and commercial properties.
C. 
Appeals from the reassessment and the amount eligible for the exemption may be taken by North East Borough or by the taxpayer as provided by law.