[Adopted 7-19-2023 by Ord. No. 1-2023]
The City of Pittston hereby creates and establishes an annual
allocation as calculated per the terms and conditions of the Revenue
Sharing Policy with the Redevelopment Authority of the City of Pittston
as attached in Exhibit A.[1]
All relevant ordinances, regulations and policies of the City
of Pittston, Pennsylvania not amended per the attached shall remain
in full force and effect.
If any section, subsection, sentence or clause of this article
is held for any reason to be invalid, such decision shall not affect
the validity of the remaining portions of the article.
This article shall take effect immediately upon adoption.
A.
Findings.
(1)
Whereas, the City of Pittston has experienced positive redevelopment
in and around the City's Downtown and Business District that
has improved the economic environment of the Downtown and led to improvements
in the collection of taxes in the City; and
(2)
Whereas, the Redevelopment Authority, and in cooperation with the
City of Pittston, has been instrumental in the redevelopment of the
City and has started and has additional plans for the future to continue
the redevelopment and to expand it to include the neighborhoods; and
(3)
Whereas, as grant funds become more scarce and operating costs of
the Redevelopment Authority continue to increase as the Redevelopment
Authority takes on more property to develop; cash flow to continue
the redevelopment; and to introduce new programs becomes challenging;
and
(4)
Whereas, the City recognizes the importance in continuing the redevelopment
of the City and ensuring the fiscal ability to deliver programs to
the City's residents and taxpayers.
B.
Calculation of annual allocation. The City of Pittston hereby establishes
an annual allocation to the Redevelopment Authority which shall be
calculated as set forth below:
(1)
When the Redevelopment Authority returns a tax-exempt property to
the tax rolls or provides financial assistance to a developer or property
owner with a project, the City shall share the new real estate tax
revenue for the property in the following manner:
(a)
100% of real estate tax revenue in year one.
(b)
90% of real estate tax revenue in year two.
(c)
Eighty percent of real estate tax revenue in year three.
(d)
Sixty five percent of real estate tax revenue in year four.
(e)
Fifty percent of real estate tax revenue in year five.
(f)
After the fifth year, the City will retain 100% of the real
estate tax revenue there forward.
(g)
To calculate new revenue the year in which the assistance was
provided or the final year of the project shall be defined as year
zero and provide the baseline.
(h)
The revenues shall be calculated and prepared by the Redevelopment
Authority and reviewed by the City each May 1. If there are any discrepancies
in the calculations, the City and Redevelopment Authority officials
shall negotiate an amicable solution. In the event an amicable solution
cannot be reached, the Mayor shall render a binding decision.
(i)
The revenues shall be paid to the Redevelopment Authority on
or about June 30 of each year.
(2)
When a project completed by and/or made possible by financial assistance
by the Redevelopment Authority includes residential, the City shall
share the new earned income tax revenue of the residents in the following
manner:
(a)
One hundred percent of earned income tax revenue in year one.
(b)
Ninety percent of earned income tax revenue in year two.
(c)
Eighty percent of earned income tax revenue in year three.
(d)
Sixty percent of earned income tax revenue in year four.
(e)
Fifty percent of earned income tax revenue in year five.
(f)
After the fifth year, the City will retain 100% of the earned
income tax revenue there forward.
(g)
To calculate new revenue the year in which the assistance was
provided or the final year of the project shall be defined as year
zero and provide the baseline.
(h)
The revenues shall be calculated and prepared by the Redevelopment
Authority and reviewed by the City each June 1. If there are any discrepancies
in the calculations, the City and Redevelopment Authority officials
shall negotiate an amicable solution. In the event an amicable solution
cannot be reached, the Mayor shall render a binding decision.
(i)
The revenues shall be paid to the Redevelopment Authority on
or about August 31 of each year.
(3)
The Redevelopment Authority is required to report to the City on
an annual basis of how the previous year's funds were expended.
The report shall be detailed and provide relevant information as to
the impact of the funds on the improvement of the City.
(4)
Any project or assistance made since January 1, 2023, shall commence
the revenue sharing and the tax assessment and earned income taxes
received shall be measured as of December 31, 2022, for the baseline.
The first revenue share shall be paid by the City to the Redevelopment
Authority on or about June 30, 2024, (real estate) and on or about
August 31, 2024 (earned income).
(5)
The Redevelopment Authority shall provide a list of projects assisted
or completed by the Redevelopment Authority in the previous year (year
zero) to the City on or about February 15 of every year. This list
shall also include existing revenue sharing projects and will list
he current year of the share and that years revenue share percentage.
(6)
The City may terminate this policy by repealing the ordinance adopting
it, but shall be responsible to complete the revenue sharing already
commenced through the fifth year of each respective property/project,
but no new revenue sharing shall occur once the ordinance is repealed.
