School board passes tax diversions.

Byline: Reid Kanaley

Jul. 20--Marc Hargraves, jolted into action by a surprise move of the Coatesville Area school board, was scrambling yesterday.

The director of marketing for Chetty Builders, of Kennett Square, worked his phone to line up a mobile sales office and a billboard. Both will be parked in downtown Coatesville in the coming weeks to promote Chetty's proposed 270-unit condominium project at Third Avenue and East Lincoln Highway.

The school board on Monday abruptly agreed to steer a portion of future tax revenue, over a 20-year period, toward repayment of $11 million in loans to support the Chetty project and two others in Coatesville's unprecedented revitalization plan.

"I must admit I didn't anticipate this happening," Hargraves said. "I hoped it would, but I thought it might be a month or so away."

In a series of votes amid a mixture of audience applause and catcalls, school directors approved the tax diversions that supporters say will break a logjam in Coatesville's six-year-old redevelopment hopes.

The plan for Tax Increment Financing, or TIF, still faces reviews by the Chester County Commissioners and the Coatesville City Council, but city officials considered the school board approval most critical, as school real estate tax revenue will make up the bulk of the funds.