Mar 15, 2018 3 min read

MONESSEN – Monessen School Board voted Tuesday to rescind its action on the tax assessment for the former Monessen Municipal Complex building, which was sold last year to a developer.

The settlement of the tax assessment appeal was approved at the board’s Feb. 13 meeting. Vice President Roberta Bergstedt said when the board discussed the tax assessment appeal, members were not aware it was for the former Monessen municipal complex at 1 Wendell Ramey Way, which was purchased by Krishnan Suthanthiran of Virginia.

“When we were discussing the item there was a miscommunication. We were confused on the property because our solicitor (John Toohey) is not from the area and he said that (it was) the police station or the city building,” Bergstedt said. The only city building he was aware of was the former police station on Third Street.

Former state representative Ted Harhai addressed the board regarding its original vote to approve the settlement and voiced his concerns about the parties involved with the purchase of the property The building was purchased by Suthanthiran, owner of Gunston Hall Realty, for $425,000.

He said an online search will reveal Gunston Hall Realty previously filed for bankruptcy. Harhai said the original appraisal value determined for the property was $250,000, but after a city council member expressed concern about the low value, it was reassessed in 2016 by CBRE at $1.9 million, if occupied, and at $900,000 if empty.

“Why are we so benevolent in the city of Monessen, not the school board, to sell a building for $425,000, accept $235,000 as a down payment, which by third-class city code is illegal, and then take a promissory note that says we pay $900 a quarter (in interest) for five years?” Harhai said.

Harhai said no taxes have been paid on the property since its purchase. Bergstedt said even if the building was reassessed at a higher price, the school district still isn’t guaranteed to receive tax payments on the property.

“This is a backdoor way to get these taxes reduced, and it hurts us. It’s hurt our schools; it hurts our city,” Harhai said.

Superintendent Dr. Leanne Spazak said with the confusion in communication surrounding the property and the additional information added at the meeting, the board had to rethink its original vote.

Toohey said after the board approved the appeal in February, he was advised the city also approved it and it was sent on to the county. “This action tonight rescinds the consent by the school district,” Toohey said. He said the school district, the city and the county all have to agree.

Suthanthiran is out of the country on business, said a spokeswoman for his company TeamBest Medical, and could not comment.