Assessment appeal by Hillcrest Shopping Center’s owners to cost Burrell School District $19,000

Burrell School District will lose nearly $20,000 in tax revenue following an assessment appeal settlement with the owner of Hillcrest Shopping Center.

A settlement between the school district and the owners of the shopping center nestled between the Route 56 Bypass and Leechburg and Wildlife Lodge roads was approved by the board.

Board Solicitor Lee Price said the property is owned by U.S. Bank National Association.

“The assessment will be reduced for 2024, which will cost (more than) $19,000 in reduced taxes,” Price said.

The new tax amount is $62,160, according to Jennifer Callahan, the district’s business manager.

Callahan said the previous tax paid by U.S. Bank National Association was $81,918 — which was based on a tax assessment of $738,000. The new assessment will be $560,000, she said.

Commercial and industrial property owners can file for a reduction in assessment when such properties experience a decline in commercial or industrial activity.

In recent years, Hillcrest — once filled with shops and businesses — has seen a steady rise in vacant storefronts as tenants moved out or went out of business.

The shopping center’s most recent assessment appeal was filed in 2023.

Callahan said there also was an appeal filed by U.S. Bank on the 2020 taxes that was settled in 2022.

The assessed value then was $1.8 million with taxes of $190,000, she said. The settlement resulted in an assessment of $738,000 and taxes of $76,752. The real estate tax rate has been increased since then, resulting in the more recent tax amount of almost $82,000.

Lower Burrell City Manager Greg Primm said in 2023, with Hillcrest’s assessed value at $738,000, U.S. Bank paid $18,266 in city taxes. This year’s assessment of $678,960 would have U.S. Bank paying $16,804, according to Primm. All figures were based on a millage rate of 24.75 mills each year.

Primm said with a $560,000 assessment, the city taxes would be $13,860.

Price said the most recent settlement may end up being a one-year proposition if U.S. Bank is able to find tenants for the shopping center over the next year.