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Penn Manor Wins
Court Appeal and Settles Safe Harbor & Holtwood Tax Assessment Case May 13, 2003 Fresh off its successful appeal to Pennsylvania’s Commonwealth Court, last evening the Penn Manor School Board approved a settlement with PPL, ending the longstanding tax assessment case involving the Safe Harbor and Holtwood hydroelectric power plants. Last year, Judge James P. Cullen of the Lancaster Court of Common Pleas entered a decision in favor of PPL, the owner of Holtwood and the part-owner of Safe Harbor. Judge Cullen decision of June 28, 2002 adopted PPL’s valuation of $4,625,000 for Safe Harbor and $2,775,000 for Holtwood. Afterward, the Penn Manor School Board authorized its Special Counsel, Howard L. Kelin of Kegel Kelin Almy & Grimm LLP, to appeal Judge Cullen’s ruling to the Commonwealth Court. The Commonwealth Court’s decision of April 30, 2003 concluded that PPL’s appraisal methodology, which Judge Cullen had approved, violates Pennsylvania law on the proper way to value real estate for tax assessment cases. It reversed Judge Cullen’s decision, and remanded the case for a new trial. In response to the Commonwealth Court’s decision, the School Board and PPL entered into settlement negotiations. Pursuant to the agreement approved by both PPL and the School Board, the assessment of Safe Harbor will be $15,000,000 and the assessment of Holtwood will be $5,000,000. The agreement will extend for seven years, covering the school years of 2000-01 through 2006-07. Stephen B. Skrocki, Business Manager for the School District, explained that the court victory and settlement are good news for Penn Manor taxpayers. “We are very pleased with the Commonwealth Court’s decision,” said Skrocki. He noted that based on its settlement with PPL, the School District will receive approximately $1.25 million dollars more in tax revenue over the seven-year period than it would have received based on Judge Cullen’s initial decision. According to Skrocki, “This settlement will certainly help as we continue to hold the line as best we can against tax rate increases.” A written settlement stipulation is being prepared, and is expected to be completed and signed within the next few weeks. The School District will receive an initial payment of over $500,000, covering additional tax owed for the years 2000-01 through 2002-03. Skrocki noted that entering the settlement at this time is helpful in preparing the School District’s 2003-04 budget. “It is good to know that this matter is finally resolved, and in a successful manner for our District,” he said. |
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