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The South Fayette Township Board of Commissioners on Sept. 16 voted to approve selling the former Star City Cinemas property for $5 million to Horizon Properties Group LLC. The site is located at Route 50 and Interstate 79 in South Fayette.
Horizon plans to demolish the former theater and redevelop the 8.5-acre site into a mixed-use commercial project to include a 30,000-square-foot office building, a nationally branded hotel and 10,000 to 15,000 square feet of restaurants and retail stores. The facilities are expected to open within 18 to 24 months.
“The sale brings the Star City property back onto the commercial tax rolls,” South Fayette Board President Joseph Horowitz said. “And the development will create an attractive gateway to our community.”
South Fayette Township staff estimates the Horizon project will generate at least $25 million worth of new commercial taxable property.
Horizon will pay for the theater demolition. Sale approval was subject to the township solicitor’s final review. The township plans to use the sale proceeds toward a community center expansion and renovation at 515 Millers Run Rd.
Horizon Properties is the real estate development company responsible for projects such as the Hilton Hampton Inn & Suites in South Fayette; Southpointe Town Center in Cecil; and the Dick’s Sporting Goods headquarters in Findlay.
The Horizon project continues the trend of business growth in the township. The past 3 ½ years of township building permits have shown a greater amount of new commercial construction investment than during the entire prior decade.
Also, total assessed commercial value in South Fayette Township increased more than 40 percent ($63 million) during the 3 years of 2012 through 2014, according to Allegheny County certified figures:
Total Taxable Commercial Growth, 2012-2014: 40.3%Total Taxable Commercial Growth, 2012-2014 (in millions): $63.1Commercial Real Estate Valuation 2012 (in millions): $156.5Commercial Real Estate Valuation 2014 (in millions): $219.6
South Fayette Township strives to achieve a healthy balance of residential and commercial development, and to add revenue without increasing the property tax millage rate. Every year since 2001, the township’s property tax millage rate has either held steady or been reduced, according to Allegheny County data.