The mall, valued at $17 million since 2003, will be assessed at $30 million for 2006, $31 million for 2007, and $32 million for 2008, said Mt. Lebanon manager Steve Feller. The mall is owned by a partnership based in Columbus and Chicago.
Commissioners approved the settlement agreement with the owners of the Galleria on April 28. Since the assessment or market value is used to calculate property taxes, the settlement means an increase in county, municipal and school tax revenues.
In 1980 the Galleria property was assessed as high as $52 million. Up through 2000, several owners and a less than favorable leasing market brought that value down to $21.9 million. The partially vacant mall was purchased by Continental Development Co. for $17 million in 2001, and Continental promptly filed and won an assessment appeal based on its purchase price of $17 million.
Since then, several new restaurants have opened, and the mall appears to have turned the corner financially.
The additional tax revenues generated by the assessment agreement to the municipality and county pale in comparison to the revenues which will come to the school district.
With school taxes currently at 23.56 mills, the district stands to reap an additional $1 million in new revenue from the settlement, receiving future tax years $750,000 from the Galleria opposed to the $400,000 received yearly before the settlement.
The week of April 14 the school district received about $1.1 million in new revenue from two outstanding tax appeals. These awards did not include the Galleria settlement.
Board President Mark Hart said the new revenues could be used to balance the budget without a tax increase.