RIMERSBURG, Pa. (EYT) — During the Union School Board meeting on Thursday night, a tax exoneration for M & C Real Estate LLC was considered, and a meeting was set to discuss the proposed major renovations of Union High School and Sligo Elementary School.
Tax Exoneration Request from M & C Real Estate LLC
The board considered a request from M & C Real Estate LLC for a tax exoneration for the former Rimersburg Elementary School building; however, they ultimately tabled the matter until more information could be obtained from the company.
M & C Real Estate previously bought the building for $100,000.00 in January of this year, following the elementary school’s closure at the end of the 2020 school year.
Board President Brenda Brinker told exploreClarion.com the board received a letter from M & C asking for a reduction of the property taxes on the former school from $44,000.00 to $2,000.00 based on a reassessment of the property M & C had conducted earlier this year.
Originally assessed at over $800,000.00, M & C’s reassessment put the value of the property at $33,000.00.
Although the reassessment would lower M & C’s tax burden for the coming fiscal years, they would still have to pay $44,000.00 in taxes this year.
“We did do our budgeting based on the $44,000.00 in revenue,” said Brinker. “They also had in their letter they would appreciate any reduction.”
Board members’ reactions to the tax exoneration request were mixed.
“Maybe it’s just a matter of how much to reduce it,” said board member John Creese. “They’ve been pretty nice. This is the first test of us working with them. We stick it to them, they could turn around and stick it to us the first time they get a chance. I think something just in good faith.”
Brinker proposed cutting the tax burden in half, to $22,000.00, but other board members raised concerns about this course of action.
“I’m thinking whenever I buy a property, one of the first things I ask is, ‘What’s the taxes?'” said board member Jeff Shirey. “I factor that into my negotiations. We’ve already budgeted that money.”
“When they bought it for $100,000.00,” said board member Steve Wiencek, “they got a really good deal. I think Jeff’s right. They knew what the taxes would be at that time.”
Board member Brade Guntrum raised the point that the district still uses the baseball fields, playground, and basketball court located on the property for school activities.
“I just really hope they don’t do something to the youth programs down there. That’s a big concern of mine,” he said.
Brinker then proposed to invite representatives from M & C to confer with the district during the board’s work session on November 11, but it was noted the taxes are due at the end of October.
If M & C were to not pay their taxes on time, they would have to pay a penalty, as well.
“But, we get that penalty,” said Wiencek, arguing the board could wait until November to act on the issue after they heard from M & C.
“That’s the way they should do it,” he continued. “Make the payment, then ask for a refund. That’s the way that it’s usually done.”
Both Guntrum and Wiencek brought up the point that granting the tax exoneration to M & C might create a slippery slope where other individuals and businesses would ask the board for lower taxes.
“This would be precedent-setting,” said Shirey. “That’s got to be part of the business plan. It’s the cost of doing business.”
It was ultimately decided to wait and hear from M & C at the November work session before any action is taken.
Major Building Renovations
The school board again discussed proposed major renovations to Union High School and Sligo Elementary School but did not come to a consensus as to which improvements needed to be made.
As in previous meetings, the main issue was how to finance the renovations.
“We’re on a timeline,” said Brinker, explaining to the board they only had a limited amount of time left if they wanted the renovations to start at the end of the 2021-2022 school year.
The board again discussed the two proposals submitted to them by McClure Company, the company that Union School District has been working with on the renovations project, with Brinker saying they had landed on the least expensive of the two, which would focus mainly on Sligo Elementary while taking care of the necessities at Union High School.
This proposal by McClure Company has a total cost of $6,214,211.00 with total operational and energy savings of $1,436,896.00.
“We can’t afford to do this,” said Guntrum. “I don’t really want to vote in this and pass the new debt to a new board.”
Wiencek argued the board could get a better deal for the project.
“I still maintain you’re paying $6 million for a $5 million project,” he said. “You’re obligating a future board to a huge tax increase.”
Wiencek also stated the board needed to know exactly what they were paying for and said he did not want to hand McClure Company “a blank check” to do the renovations.
Union Superintendent Dr. John Kimmel told Wiencek it was hard to get to that level of detail as there was no contract with McClure Company. He explained they needed to specifically tell McClure what it is they want to be done and how much they are willing to spend.
Brinker then set a special, public meeting on October 28 at 7:00 p.m. at Union High School with McClure Company to again discuss the renovations.
“I know things need to be done,” she said. “The can has been kicked down the road for a long time.”
In other business, the board:
• Approved the agreement between the Union School District and Pyramid Healthcare, Inc. Soaring Heights School, effective September 24, 2021.
• Hired Debra Rudiger as an Educational Aide, effective, November 1, 2021, at Step 1 of the Union Education Support Personnel Association Bargaining Agreement.
• Hired Katie Hibbard as Mentor Teacher for the 2021-2022 School year at a salary of $500.00.
• Approved Katie Bearfield, Cheryl Best, William Priester, and Sheena Priester as PTO Volunteers/Chaperones.
• Hired Brandon Ferris as a substitute custodian for the 2021-2022 school year.
• Hired David Gibson as the 2021-2022 Play/Musical Director at the salary of $2,180.00. (Up $60.00 from last year)
• Approved the purchase of a kiln from Kurtz Bros. at the cost of $3,938.75.
• Approved the purchase of decals for the high school building from Clark Vinyl Graphics in the amount of $2,227.50.
• Approved Elizabeth Montgomery, Cindy Carr, and Linda Lewis as substitute van drivers for Weaver Transportation.
• Approved Lynne Jones as a substitute bus driver for Rick Myers Busing, LLC.
• Accepted the resignation of Head Jr. High Boys Basketball Coach, Tonya Fleming, effective September 22, 2021.
• Hired Kolby Montgomery as the 2021-2022 Head Jr. High Boys Basketball Coach at the salary of $1,450.00.
• Approved the Girls’ and Boys’ Track Athletic Cooperative Agreement between Allegheny-Clarion Valley School District and the Union School District. This agreement will be effective with the start of the 2021-2022 school year and continue through the 2023-2024 school year.
• Approved Ryan Wilson, Dustin Kifer, Matt Bish, and Brian Runyan as Youth Sports Clinic Volunteers, for grades 4-6 for the 2021-2022 school year.
• Approved Matt Bish as a Varsity Boys Basketball Volunteer for the 2021-2022 school year.
• Hired Alexandra Bell as the 2021-2022 Softball Manager at the salary of $2,220.00. (This is up $60.00 from last year.)
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