Trinity:
BSI tax argument just BS
BY LINDA METZ,
Staff writer
Ballpark Scholarships Inc. on Thursday
made its pitch to the Washington County Tax Assessment Appeals
Board for relief from nearly $70,000 in annual real estate taxes.
But it's possible the board will balk at BSI's request for tax-exempt
status, especially since it was met with opposition from Trinity
School District.
Attorneys for BSI and Trinity presented their cases to the board,
made up of three new members who were sworn into office just
last week.
In addition to the tax-exempt status, BSI is appealing a nearly
$136,000 Revenue Allocation Program assessment and all back
real estate taxes on Falconi Field owed to Trinity for part
of 2002 and all of 2003. Falconi Field is home to the Washington
Wild Things.
BSI believes it should be exempt from paying property tax because
it is providing an invaluable charitable service to the county
by hosting the minor league team at the field in North Franklin
Township.
"We use the Wild Things to deliver our charitable contribution
to the community," said BSI attorney Colin Fitch.
The Frontier League team is the primary lessee of the ballpark,
having priority to use the field during its season that spans
May through August. Fitch said the team also helps BSI in managing
the stadium.
"The Wild Things are an integral part of BSI," Fitch
said. "The stadium could not have been built without the
Wild Things."
But while the team is a for-profit entity, Fitch explained that
BSI, the owner of the ballpark, is a not-for-profit group. And
while the Wild Things have priority for use of the stadium,
BSI has made sure that the facility is available for use by
California University of Pennsylvania and Trinity High School
baseball teams. California University signed a 30-year, $450,000
contract for use of the field. On March 18, BSI agreed to allow
Trinity to use the field for its 12 home games at no cost. That
offer came after Trinity turned down a request to waive the
RAP assessment in exchange for use of the field. More importantly,
Fitch said, BSI provides $15,000 annually in scholarships, and
it holds clinics and other charitable events throughout the
year.
"It's pretty clear BSI has a charitable purpose,"
he said.
Fitch provided the board with BSI's articles of incorporation,
which he said stipulates that the ballpark be turned over to
a government entity. But, in the meantime, he said BSI is fulfilling
government's role.
"We are actually serving as a government entity, because
we are relieving the government of this burden to provide this
service," said Fitch. He added that if BSI were not providing
baseball to the general public, county government would have
to spend money to provide other entertainment and recreational
opportunities for the public.
Fitch also argued that BSI has passed all the criteria needed
to be declared exempt from state sales tax and, therefore, it
should be exempt from paying property tax on the ball field.
However, he later agreed that it is "theoretically possible
to have a sales tax exemption but not real estate exemption."
After Fitch completed his presentation, he contended that school
district representatives should not be given the opportunity
to oppose BSI's request because it already participates in the
Local Economic Revitalization Tax Assistance zone, which includes
Falconi Field. However, district solicitor Don Walsh, of the
law firm of Maiello, Brungo and Maiello of Pittsburgh, argued
that the purpose of LERTA is to offer temporary tax breaks to
developers with the intention of full tax payment eventually.
Walsh said he did not dispute BSI's nonprofit status, but it
should not be considered in this case. Instead, he said that
under state law, real estate tax exemption should be determined
by the use of the property.
Walsh argued that the Wild Things have control over the facility
to make a profit. In addition to the regular season, the team
is responsible for renting out the ballpark's other facilities,
including the luxury suites and hot tub deck.
District solicitor Michael Brungo questioned the purpose of
luxury suites and a hot tub if the facility's primary purpose
is for charity.
Brungo also said that while BSI often refers to the tax-exempt
status of other stadiums, such as those in Pittsburgh, that
falls under specific state legislation. "There is no such
statute here," he said.
BSI and Trinity agreed to waive a five-day time limit for the
tax assessment appeal board to make its decision.
"We sit here and we're overwhelmed by the whole thing,"
said board Chairman Bob Lusk. "It's going to take some
time to sift through all this information."
Also during the hearing, accountant Randy Guthrie said BSI no
longer was interested in having the county guarantee a $6 million
long-term bond issue.
"We're not going to go with the county. We're going on
our own," he said.
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