Borough of Quakertown, PA Part 5 LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE

§ 501 Short Title.

[Ord. 1176, 1/5/2011]

This document is a local economic revitalization tax assistance ordinance and shall be known and cited as the "Borough of Quakertown LERTA Ordinance."

§ 502 Definitions.

[Ord. 1176, 1/5/2011]

As used in this Part 5, the following terms shall have the meanings indicated:

ASSESSED VALUATION

The value of a parcel of real property as established by the Office of Property Assessment of the County of Bucks for the purpose of the assessment and levy of real property upon which the building is located.

BROWNFIELDS

Abandoned or underutilized industrial or commercial facilities available for reuse. Expansion or redevelopment may be complicated by real or perceived environmental contaminations.

CONSTRUCTION/IMPROVEMENT

New construction, repair, construction or reconstruction, including alteration and 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."

COUNTY

The County of Bucks.

DETERIORATED AREA

Those specific geographic areas within the Borough of Quakertown, marked on the attached map (Attachment A),[1] which have been determined to be physically impaired on the basis of one or more standards, including but not limited to the following:

A. The buildings, by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, have become economic or social liabilities.

B. The buildings are substandard, unsanitary, unhealthy or unsafe.

C. The buildings are overcrowded, poorly spaced or so lacking in light, space and air as to be unwholesome.

D. The buildings are faultily arranged, cover the land to an excessive extent, show a deleterious use of land or exhibit any combination of the above which is detrimental to health, safety or welfare.

E. A significant percentage of buildings are more than 40 years of age.

F. A substantial amount of unimproved, overgrown and unsightly vacant land exists which has remained so for a period of five years or more indicating a growing and total lack of utilization of land for economically desirable purposes.

DETERIORATED PROPERTY

Any industrial, commercial or other business property owned by a property owner and located in a deteriorated area, as herein provided, or any such property which has been the subject of any order by a government agency requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances and regulations.

EXEMPTION

The nonliability for the payment of additional real property taxes to the local taxing authorities resulting from increased assessed valuation attributable to the actual cost of improvement(s), as defined herein, made to deteriorated property within a deteriorated area for the period of time as set forth herein.

GREYFIELD

Economically obsolete, outdated, failing, moribund and/or underutilized real estate assets or land.

IMPROVEMENT(S)

Repair, construction or reconstruction, including alterations and additions, having the effect or rehabilitating a deteriorated property so that it becomes habitable or attains higher standards of safety, health, economic use or amenity or is brought to compliance with laws, ordinances or regulations governing such standards. Ordinary upkeep and maintenance shall not be deemed an "improvement."

LOCAL TAXING AUTHORITY

The County of Bucks, the Quakertown Area School District and the Borough of Quakertown.

MIXED-USE DEVELOPMENT (SINGLE BUILDING)

Mixed-use developments (single building) incorporate a mix of uses in a single building. This type of development is intended to allow for efficient use of land and public services in an urban setting; encourage human interaction and sense of place; create safe, attractive and convenient environments; and increase development alternatives.

MUNICIPALITY

The Borough of Quakertown.

OFFICE

The Office of Property Assessment of Bucks County, Pennsylvania, or such successor entity responsible by law or by ordinance for determining the validity of a valuation of real estate for the assessment and levy of real estate taxes in Bucks County.

PROJECT

The improvement of a deteriorated property carried out during a single continuous period of time according to a common plan.

PROPERTY OWNER

Any natural person, partnership, unincorporated association, limited liability company or corporation, nonprofit or otherwise. Whenever used in any provision of this Part 5, the word "property owner," as applied to partnerships, shall mean and include all members thereof, or as applied to corporations, shall mean and include all officials or officers thereof. The term "property owner" used in this Part 5 is synonymous with "taxpayer."

RECONSTRUCTION

The rebuilding or renovation of a building(s) previously erected for the purpose of changing the economic use or amenity of such structure or to obtain higher standards of safety or heath.

SCHOOL DISTRICT

The Quakertown Area School District.

TAX COLLECTOR

The Tax Collector of the Borough of Quakertown.

TAX DELINQUENCY

All property taxes, charges, fees, rents or claims due and unpaid by the owner of the deteriorated property or with respect to the deteriorated property as of the time of the application for an exemption or at any time thereafter during the term of the exemption. The term includes all penalties, additions, interest, attorneys' fees and costs due on such delinquent taxes, charges, rents or claims.

TAX YEAR

The twelve-month period from January 1 to December 31 annually.

[1] Editor's Note: Attachment A is on file in the Borough offices.

§ 503 Deteriorated Area.

[Ord. 1176, 1/5/2011]

The areas designated by the local taxing authorities set forth in Attachment A located within the Borough of Quakertown constitute the deteriorated area.

§ 504 Exemptions.

[Ord. 1176, 1/5/2011]

1. Any property owner, who does not have a tax delinquency on any property located within the Borough of Quakertown, undertaking a project within the deteriorated area which is qualified as a construction or reconstruction or improvement(s) project may apply for and receive from the Borough an exemption from Borough real property taxes due to the increased or additional assessed valuation attributable to construction or reconstruction or improvement(s), in the amounts and in accordance with the provisions and limitations set forth in this Part 5. The exemption from Borough real estate taxes shall be specifically limited to the additional assessed valuation attributable to the actual costs of the construction or reconstruction or improvement(s) to the property within the deteriorated area.

2. Any property with a tax delinquency is not eligible for the relief set forth in this Part 5.

§ 505 Exemption Schedule.

[Ord. 1176, 1/5/2011]

1. Any property owner whose property is located within the deteriorated area set forth in Attachment A; whose property is considered a brownfield or greyfield, and who makes construction, reconstruction or improvement(s) to such property, may apply for an receive from the Borough an exemption from real property taxes due to the increased or additional tax assessment attributable to the construction, reconstruction or improvement(s) made, in the amounts and in accordance with the provisions and limitations set forth in this Part 5.

A. Mixed-Use Building/Redevelopment. The exemption from Borough real estate taxes granted for construction, reconstruction or improvement(s) for a mixed-use single building/redevelopment plan within the deteriorated area described in Attachment A shall be in accordance with the following conditions and schedule:

	Year	Exemption
	First year	100%
	Second year	90%
	Third year	80%
	Fourth year	70%
	Fifth year	60%
	Sixth year	50%
	Seventh year	40%
	Eighth year	30%
	Ninth year	20%
	Tenth year	10%

B. Single-Use Building/Redevelopment. The exemption from Borough real estate taxes granted for construction, reconstruction or improvement(s) for a single-use building/redevelopment plan within the deteriorated area described in Attachment A shall be in accordance with the following conditions and schedule:

	Year	Exemption
	First year	80%
	Second year	60%
	Third year	40%
	Fourth year	20%

C. Residential Real Estate Tax Exemption. Homeowners living in newly improved mixed-use single buildings constructed, renovated or improved under Subsection 1A, and located within the target area, as shown on the attached Map B,[1] shall receive the following real estate tax exemptions:

	Year	Exemption
	First year	100%
	Second year	100%
	Third year	100%

[1] Map B is on file in the Borough offices.

2. There is no exemption granted on the assessed valuation attributable to land. There is no exemption granted, and any existing exemption shall be permanently revoked, if there exists any tax delinquency with respect to the property or other property owned in the Borough by the property owner.

§ 506 Procedure for Obtaining Exemption.

[Ord. 1176, 1/5/2011]

1. At the time that a property owner secures a building permit for construction use, the property owner desiring the temporary real estate tax exemption pursuant to this Part 5 shall file a request, in writing for exemption on a form (exemption request) proscribed by the municipality. The property owner shall file the form with the Municipality, and a copy shall be delivered to the Bucks County Office of Property Assessment (Office).

2. The property owner must provide and certify on the exemption request the following information:

A. The name and address of the property owner.

B. The lot and block number of the property.

C. The initial assessed valuation of the property.

D. The current year taxes on the property.

E. The date of the building permit was issued for the construction, reconstruction or improvement(s).

F. The summary of the plan of construction, plan of improvement(s) or reconstruction.

G. The anticipated date of completion.

H. The actual costs of construction, reconstruction or improvement(s).

I. A statement indicating that there is not a tax delinquency on the property.

J. Such other information as may be necessary to process such application for exemption.

K. The planned use of the property or properties and certification that said use will be in compliance with the provisions and limitations set forth in this Part 5.

3. The exemption request shall be filed by the property owner with the Office no later than 90 days after the date the building permit is issued.

4. When the construction, reconstruction or improvement(s) has been completed, the property owner shall notify the Office in writing. Such notice must occur within 90 days of completion. Failure to submit such exemption request within this time period shall give the Borough the right to deny any exemption claimed pursuant to this Part 5 for the initial tax year after completion of the construction, reconstruction or improvement(s), thereby limiting the length of the schedule of taxes exempted to less than the ten-year period established under this Part 5. The notice of completion shall include the following information:

A. The name and address of the property owner.

B. The lot and block number of the property.

C. The date that the construction, reconstruction or improvement(s) was completed.

D. Any modification to the plan of construction, reconstruction or improvement(s) as previously submitted.

E. The final, adjusted, actual costs of construction, reconstruction or improvement(s).

F. Certification that the use of the properties is or will be in compliance with the provisions and limitations set forth in this Part 5.

5. The Office shall, after notice in writing and with prior physical inspection, assess the property to determine the valuation attributable to the construction, reconstruction or improvement(s) eligible for exemption under this Part 5.

6. The Office shall provide to the Borough and the property owner the following information, in writing:

A. The assessed valuation of the property prior to construction, reconstruction or improvement(s).

B. The increased in assessed valuation attributed to the construction, reconstruction or improvement(s).

C. The amount of assessed valuation increase eligible for exemption.

D. The calendar year the exemption shall commence.

§ 507 Transferability.

[Ord. 1176, 1/5/2011]

The exemption from taxes authorized by this Part 5 shall be upon the property exempted and shall not terminate upon the sale, exchange or other alienation of such property, unless otherwise provided.

§ 508 Intergovernmental Cooperation Agreement.

[Ord. 1176, 1/5/2011]

The proper officials of the Borough of Quakertown are hereby authorized to enter into an intergovernmental agreement pursuant to the Intergovernmental Cooperation Act, 53 P.A.C.S.A. § 2301 et seq., with the school district and the county to implement the exemption from real property taxation established under this Part 5. The intergovernmental cooperation agreement shall be subject to review and approval as to form by the Solicitors of each taxing body.

§ 509 Revocation of LERTA Exemption.

[Ord. 1176, 1/5/2011]

The exemption from real estate taxes provided for herein shall be forfeited by the applicant and/or subsequent owner of the real estate for the failure to pay any nonexempt real estate taxes by the last day of the time period to pay such taxes in the penalty period. Upon receipt of the notice of nonpayment of nonexempt real estate taxes, the Quakertown Tax Collector shall discontinue the LERTA exemption and shall notify the Bucks County Tax Assessment Office of such discontinuance, which shall notify the Quakertown Area School District Tax Collector and Bucks County Treasurer.

§ 510 Term; Applicability.

[Ord. 1176, 1/5/2011]

1. This Part 5 shall take effect immediately following its adoption. The provisions of this Part 5 shall apply to all applications filed from and after the effective date hereof for a period of 10 years from the effective date of this Part 5, unless otherwise terminated by the Borough in accordance with applicable law.

2. The cost of improvement(s) to be exempted and the schedule of taxes exempted existing at the time of the initial request for tax exemption shall be applicable to that exemption request; and subsequent amendment of this Part 5, if any, shall not apply to requests initiated prior to its adoption.