Oakmont Residents Question TIF

Representatives from Rothschild Doyno Architects presented proposed changes to The River’s Edge of Oakmont’s plan at Monday’s Oakmont council work session. However, it wasn’t the changes Oakmont residents questioned, it was the possible funding of the project with Pennsylvania’s Tax Increment Financing (TIF) Guarantee Program.

“We want to know what [TIF] is about,” Oakmont resident Lois Hlavac said. “We want to know what’s happening.”

Oakmont Council President Tim Milberger said council plans to have meetings to discuss the TIF. A previous presentation from Brooks and Blair Waterfront Properties, LP, the developer for the project, delivered , will be made available on the Oakmont Borough web site and at the .

According to Pennsylvania’s web site, a TIF:

“Promotes and stimulates the general economic welfare of various regions and communities in the Commonwealth and assists in the development, redevelopment and revitalization of Brownfield and Greenfield sites in accordance with the TIF Act. The program provides credit enhancement for TIF projects to improve market access and lower capital costs through the use of guarantees to issuers of bonds or other indebtedness.”

According to Milberger, the land where The River’s Edge of Oakmont development will be is a brownfield.

“TIF is a tool used to convert brownfields and develop them,” Councilman Tim Favo said. “It’s a complicated matter. No one is acting on this quickly.”

Several other Oakmont residents questioned council about the TIF plan and who is responsible for paying back the funds received from taking advantage of the program.

Under the TIF, the property’s three taxing bodies—the school district, Allegheny County and Oakmont Borough—would divert a portion of taxes collected from the property to put it back into financing the project.

The state’s TIF act gives local taxing bodies the authority to cooperate in providing financing for development of blighted areas to increase the tax base, provide new employment opportunities and improve the general economy.

If approved, the Rivers Edge TIF would be the first residential one in the state.

According to Favo, a TIF bond is not a loan, and Oakmont residents are not responsible for paying funds received from a TIF bond.

“A future portion of the tax revenue from residents of the development will pay the bond back,” Favo said.

According to Milberger, it’s the decision of council, Riverview School District and Allegheny County to accept a TIF bond or not, and the project can still move forward without the bond if the developer decides to continue with other financing.

“This is a great application of TIF,” Ken Doyno, principal engineer with the architecture firm, said. As of Aug. 9, the previous TIF presentation from Brooks and Blair Waterfront Properties was not posted on the borough’s web site and no new meetings about TIF have been advertised.