The Dallastown Area school board voted Thursday to stay within the tax cap set by the state, and to approve tax relief for a development project on Queen Street.

The board followed the recommendation of the budget and finance committee not to exceed the property tax increase cap of 2.6 percent for the 2014-2015 school year.

Board member Ronald Blevins said at a previous school board meeting the board will still have to decide if it will raise property taxes by the full percentage permitted by the state Department of Education.

For a homeowner with a property valued at $150,000, a raise of 2.6 percent would be an increase of 0.58 mills, or $87.

The board also voted to approve a Local Economic Revitalization Tax Abatement, or LERTA, project in the district.

According to the LERTA agreement, the development company for the property at 2157 S. Queen St., Queen Pauline, will pay the current rate of property taxes. When the improvements are completed, the property will be reassessed by the county. The owner will pay an additional 10 percent of the increased rate every year, until the district receives 100 percent of the taxes from the reassessed value after 10 years.

The property is slated to be a new hotel, and could increase the value of the property by $8 million, district solicitor Jeffrey Rehmeyer said at the board meeting last week.

Other business: Assistant Superintendent Joshua Doll said the district is looking for six community members who are interested in serving on the district-wide comprehensive planning team.

The team will be made up of district administrators, teachers, students and parents, among others. It will work to create long-term goals for the district over the course of several years.

The kickoff meeting for the team will be Wednesday, Jan. 8. Doll said community members interested in being a part of the planning should contact his office for more information.

-- Reach Nikelle Snader at