[Adopted 4-28-2020 by Ord. No. 2020-10; amended in its entirety 12-6-2022 by Ord. No. 2022-14]
As used in this article, the following words and phrases shall have the meaning set forth below:
DETERIORATED AREA
An area, the boundaries of which are determined by a local taxing authority in which improvements to deteriorated properties are eligible for tax exemption.
DETERIORATED PROPERTY
Any industrial, commercial or other business property owned by an individual, association or corporation, and located in a "deteriorated area," as provided by resolution of the Council of the City of Hazleton, or any such property which has been the subject of an order by the City of Hazleton or agency thereof requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations.
IMPROVEMENT
Repair, construction or reconstruction, including alterations or additions, having the 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. Ordinary upkeep and maintenance shall not be deemed an improvement.
LOCAL GOVERNING BODY
City of Hazleton.
LOCAL TAXING AUTHORITY
City of Hazleton, Hazleton Area School District and County of Luzerne or any other governmental entity having the authority to levy real property taxes within the City of Hazleton.
The following zoned area in the City of Hazleton is hereby specifically designated as being a deteriorated area: GI. All commercial, industrial, or local business properties located in the GI Zoning District are eligible to participate in this tax exemption program, so long as they meet the prerequisites for the program as hereinafter described.
A. 
The amount to be exempted shall be limited to that portion of the additional assessment valuation attributable to the actual costs of the improvement to the deteriorated property.
B. 
The exemption shall be limited to the improvement for which the exemption has been requested in the manner set forth below and for which a separate tax assessment has been made by the Luzerne County Board of Assessment Appeals. Tax exemption shall only be granted if the property, as completed, complies with the various codes of the City of Hazleton and has been approved as a land development by the Council of the City of Hazleton.
A. 
In order to provide flexibility for developers and to minimize any adverse impact on the City, the City offers a developer two options from which they may choose:
(1) 
An escalating scale as follows:
(a) 
For the first year immediately following the date upon which the improvement becomes assessable, 100% of the assessed valuation of the eligible improvement shall be exempted.
(b) 
For the second year immediately following the date upon which the improvement becomes assessable, 90% of the assessed valuation of the eligible improvement shall be exempted.
(c) 
For the third year immediately following the date upon which the improvement becomes assessable, 80% of the assessed valuation of the eligible improvement shall be exempted.
(d) 
For the fourth year immediately following the date upon which the improvement becomes assessable, 70% of the assessed valuation of the eligible improvement shall be exempted.
(e) 
For the fifth year immediately following the date upon which the improvement becomes assessable, 60% of the assessed valuation of the eligible improvement shall be exempted.
(f) 
For the sixth year immediately following the date upon which the improvement becomes assessable, 50% of the assessed valuation of the eligible improvement shall be exempted.
(g) 
For the seventh year immediately following the date upon which the improvement becomes assessable, 40% of the assessed valuation of the eligible improvement shall be exempted.
(h) 
For the eighth year immediately following the date upon which the improvement becomes assessable, 30% of the assessed valuation of the eligible improvement shall be exempted.
(i) 
For the ninth year immediately following the date upon which the improvement becomes assessable, 20% of the assessed valuation of the eligible improvement shall be exempted.
(j) 
For the 10th year immediately following the date upon which the improvement becomes assessable, 10% of the assessed valuation of the eligible improvement shall be exempted.
(k) 
For the 11th year immediately following the date upon which the improvement becomes assessable, the exemption shall terminate.
(l) 
The exemption from taxes granted under this article shall be upon the property and shall not terminate upon the sale or exchange of the property.
(2) 
A one-time payment calculated as follows:
(a) 
Due within 30 days of plan submission a one-time payment to the City equivalent to three years at 100% of the current land value plus the estimate of total construction cost.
(b) 
For the sixth year immediately following the date upon which the improvement becomes assessable, if the total construction cost used to make the calculation is less than the current assessed value, the current owner agrees to make whole on the original one-time payment amount.
A. 
Under the provisions of this article, you may be entitled to a property tax exemption on your contemplated alteration or new construction. An application for exemption may be secured from the City of Hazleton, 40 North Church Street, Hazleton, Pennsylvania, and must be filed with the City of Hazleton at the time a building or alteration permit is secured, or, if no building or alteration permit is required, then at the time that construction commences.
B. 
At the time a building or alteration permit is secured for the construction of an improvement for which an exemption is requested, or at the time construction commences if no permit is required, the taxpayer shall apply to the City of Hazleton for the exemption provided for in this article. Request for the exemption must be in writing certified in full setting forth the following information:
(1) 
The date the building permit or alteration permit was issued for said improvements.
(2) 
The location of the property to be improved.
(3) 
The nature of the property to be improved.
(4) 
The type of improvement.
(5) 
The summary of the plan of the improvement.
(6) 
The cost of the improvement.
(7) 
Any and all additional information the City may require.
The mandate for eligibility for this program shall be the following:
A. 
The creation of no less than 100 jobs; or
B. 
The expenditure of no less than $2,000,000 for the improvement.
A copy of the application for exemption shall be forwarded to the Luzerne County Board of Assessment Appeals by the City of Hazleton. Upon completion of the improvement or new construction, the taxpayer shall notify the City and the Luzerne County Tax Assessor, so that the Assessor can assess the improvements separately for the purpose of calculating the amount of assessment eligible for tax exemption in accordance with the limits established in this article. The City will then obtain from the Assessor the amount of the assessment eligible for exemption and will notify the taxpayer. Appeals from the assessments and the amount eligible for the exemption may be taken by the taxpayer or the City as provided by law. However, after the initial assessment, the applicant waives the right to appeal the assessment for the term of the program or exemption.
Unless otherwise repealed by City Council, this article shall terminate on December 31, 2040. Nothing contained herein shall prohibit City Council from enacting a similar ordinance or extending this one. Any property tax exemptions granted under the provisions of this article shall be permitted to continue according to the exemption schedule even if this article expires or is repealed.
The Council of the City of Hazleton is hereby authorized and empowered to prepare, promulgate, and enforce rules and regulations made pursuant to the provision of this article. Such rules and regulations shall have the full force and effect of law unless modified, revoked, or repealed by City Council.
Any and all other ordinances or parts of ordinances in violation or in conflict with the terms, conditions and provisions of this article are hereby repealed to the extent of such irreconcilable conflict.
The terms, conditions and provisions of this article are hereby declared to be severable, and, should any portion, part or provision of this article be found by a court of competent jurisdiction to be invalid, nonenforceable or unconstitutional, the Council hereby declares its intent that the ordinance shall have been enacted without regard to the invalid, nonenforceable, or unconstitutional portion, part or provision of this article.