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Allegheny County Council

Walnut Capital to get a $1.2 million tax break from the county.

Written by Amy Whipple

Despite expressing misgivings during discussion, council authorized $1.2 million in tax relief for a prominent local developer.

The resolution grants Walnut Capital a 10-year tax abatement for a development that is already in-process in Oakland using the Local Economic Revitalization Tax Assistance Act (LERTA).

LERTA temporarily exempts property owners from paying property taxes. Instead the money is supposed to be used for repairs, construction or reconstruction of buildings in designated deteriorated areas. The theory is that the tax reduction will encourage development.

Walnut Capital will not have to pay any property taxes on the development for the first two years on its 160-unit, 480-bed complex designed for college students. After that the company’s tax bill will incrementally increase to 40% of the full taxes over the remaining eight years.

Council Member Jordan Botta of Friendship said the developers pledged to designate at least 10% of units as “deeply affordable.” The development will not solve the University of Pittsburgh’s on-campus housing shortage, but it will address undergraduate students’ demand for off-campus housing in Central Oakland.

Council’s extended discussion focused on the council’s inconsistent definition of “deteriorated,” how long a LERTA should be in effect and subsidizing developments like the one in Oakland that would happen even without county assistance.

Council Member Paul Klein of Point Breeze said, “We have looked the other way for too long.” While he supported authorizing abatement for this development, he suggested council begin the new year “bringing some focus to what the requirements of the LERTA are and then acting in a way that is consistent with that.”

Connections to this story

Elected officials:
Jordan BottaPaul Klein
Topics:
Economic Development
Governments:
Allegheny County Council
Sources:
Resolution 13745-25 — A Resolution providing for a program of temporary exemption from County real property taxes for improvements, including…

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