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Phoenixville approves settlement with hospital owner; voluntary $202,600 contribution agreed
Summary
Council approved a settlement and voluntary contribution agreement with Phoenixville Hospital LLC/Tower Health that designates about 23% of the site as taxable (office building) and 77% exempt (hospital) and provides a $202,600 voluntary contribution offset to reimbursements for prior tax years.
Phoenixville Borough Council on Aug. 12 approved a settlement and voluntary contribution agreement between the borough and Phoenixville Hospital LLC (owned by Tower Health) resolving parts of litigation over the property's tax status.
Borough counsel summarized the terms: the school district’s appeal of the hospital property's tax‑exempt status led to parallel settlement terms between Tower Health and the borough. Under the agreement, roughly 23% of the parcel (the portion containing an office building) will be treated as taxable; approximately 77% (the hospital portion) will remain exempt. The borough will refund taxes paid by Tower Health for the exempt portion for tax years 2023, 2024 and 2025, but Tower Health will provide a voluntary contribution of $202,600 that can be deducted from that reimbursement. The agreement’s term runs through the end of the 2026 tax year.
Council discussion was limited; the solicitor recommended the settlement as a reasonable resolution and council approved the agreement by voice vote with no recorded opposition.
Next steps: The borough will execute the settlement and handle reimbursements per the agreement; staff indicated the $202,600 voluntary contribution will offset part of the refunds due to Tower Health for the stated years.
