City Council Disputes UPMC Lock Haven Hospital Tax Abatement Request


By Scott Johnson

LOCK HAVEN – The city is looking at a possible loss of tens of thousands of real estate tax dollars, as UPMC-Susquehanna is seeking tax-exempt status for its property in Lock Haven (Lock Haven Hospital.) The UPMC request was to be heard this week by the Clinton County Commissioners in their capacity as the county board of assessment appeals.


City Manager Greg Wilson said at Monday’s council meeting the hospital is the largest tax-paying entity in the city at $72,000 in property and land taxes. The next-highest parcel is Fairview Inn and Suites at about $35,000 less, he said.


”Basically, what they (UPMC) are stating is they want all services from the city, from fire protection, paved roads, water and sewer, just not pay for them,” Wilson said.


A letter to the Clinton County Board of Assessment appeals from the city, dated Oct. 6, states, “UPMC Susquehanna is seeking exemption on the basis of operating as an ‘institution of purely public charity.'”
The city’s letter states UPMC-Susquehanna must pass all five tests listed in a Pennsylvania Supreme Court case in 1985. In test one, the city’s Solicitor, Justin Houser, believes it “advances a charitable purpose,” and four other tests and sub-tests.


However, the letter states UPMC did not “adequately enable a determination as to whether test No. 2 subtest 2, and test No.2 subtest, and test No. 3 have been met.”
The first debatable test, by the city, is test No. 2 subtest 2 that requires the institution prove that it “applies or reserves all revenue, including contributions, in excess of expenses in furtherance of it charitable purpose or to funding of other institutions which meet the provisions of this subsection and subsection (b).”


Test No. 2 subtest 3 requires that “compensation, including benefits, of any director, officer or employee is not based primarily upon the financial performance of the institution.”
Test No. 3 requires that the institution “donates and renders gratuitously a substantial portion of services.”


The city disputes all three tests and subtests. “It’s imperative they rise to the occasion,” Wilson said during the meeting. “If they want the tax abatement, they need to provide documentation.”
”It’s the same building, the same land and improvements, so why are they trying to reduce taxes?” Council member Steve Stevenson questioned.
In other matters from Monday night’s meeting, Department of Public Works Director Tony Stopper reported the city has solicited new requests for proposals from five new firms for a possible solar array at the Lock Haven Sewer Plant. He said three responded – Tangent Electricity, YGS Solar and Constallation. He said all three are in an energy audit phase and the city should receive proposals in the next two weeks.


Wilson noted the plan will not be implemented by the end of the year, so the city requested new proposals from the first two companies who addressed City Council this summer, IGS Solar of State College and RER Energy Group of Reading. Council tabled further action on the possible solar arrays in August.


Stopper announced leaf pick-up will be from Nov. 4-14.
Wilson noted the city’s police department will post that on its Facebook page, along with a reminder of the city’s ordinance against burning of trash and leaves.


Director of Community Life Kasey Campbell said the city is looking for a new Christmas tree for Triangle Park this year. “We’re looking for a tree 20-30 feet tall, preferably from a city resident,” said Campbell. “Look at it as free tree removal from the city, if successful,” Wilson said.
Council member Doug Byerly announced the official completion of the city seal and updates and corrections to the portraits and plaque for past mayors. He noted two are still missing, Mayors Bridgens and Claywater. He thanked Speed Pro, Addie’s Trophies and Awards, Lou Bernard and Joby Topper. Both Bernard and Topper are noted historians in the area.


Bernard said he is still working on securing a picture of Bridgens, but conceded there may not be any available picture for Claywater. “We may never get a picture of Claywater,” Bernard said. “There is no historical record of him being mayor.” Bernard thanked Topper for information on Claywater. Council applauded all involved twice.