L. Towamensing hears more details of tax deferral plan
The Lower Towamensing Township supervisors heard information about a tax increment financing plan Tuesday evening from an attorney for Blue Mountain Resort.
C. Peter Carlucci Jr., an attorney with Eckert Seamans in Harrisburg, told the supervisors that Blue Mountain Resort would like to use a TIF to divert taxes on the development of its proposed hotel until after it is completed and loans are being paid off. Payment of the taxes on the hotel portion could be deferred for up to 20 years. A TIF allows the developer to use funds it would pay in taxes to the county, township and school district to instead pay off the loans.
This tax exempt platform has been used in recent years by Camelback Mountain Resort in Tannersville to build its hotel, Kalahari Resorts Pocono in Pocono Mountain, as well as the Charles Chrin Co. in 2011 when it sought to finance the construction of an interchange on Route 33 near Tatamy.
Base taxes would continue to be paid as they exist today for the county, township and school district, he said.
Carlucci said he is asking the township, county and school district to appoint a representative to be on a TIF committee and explore this option. The TIF committee would work with a TIF consultant and the Carbon County chapter of the Pennsylvania Industrial Development Agency, which will then come back to the township with a report. The process should take a couple of months, he said.
“If one taxing body opts out, can the project move forward?” Supervisor Ron Walbert asked.
“It could, depending on the taxing body,” Carlucci said.
For instance, if the school district would opt out, then it could affect the project, he said.
Blue Mountain wants to build a 130-room hotel and condominium building near its Skytop Lodge at the top of the mountain ski trails. The project hit a snag when the Appalachian Trail Conservancy challenged the project due to its location near the trail. The Lower Towamensing Township Zoning and Hearing Board granted seven of the eight variances sought by the resort.
Brent Green, chairman of the supervisors, asked if road improvements can be included under the debt being covered by the TIF. Carlucci said it can, as long as the road improvement is related to building construction.
“A TIF enhances the ability of the developer to take on the project,” Carlucci said.
“It is a viable financing option,” Walbert said after few more questions were answered.
Barbara Green, the owner of Blue Mountain Resort, said, “It does say to the lenders that the taxing bodies are behind it.”
The supervisors agreed to discuss who they would like to appoint to the committee and will get back to him and Blue Mountain Resort with their answer.
In other business
Supervisors also approved three items for work that need to be done on township vehicles. The first item is replacing the clutch on a truck for the amount of $2,000, repairs to a snow plow for $764.50 and the purchase of large chains for trucks that need them with the stipulation that the cost will not exceed $5,000.
Architectural Polymers received an extension until December on their plans for expansion.
And the spotted lanternfly has been declared to be in Carbon County, which puts the county in a quarantine zone, Green said. That means that if residents travel outside of the area, they should check their vehicles to make sure the insect has not attached itself and therefore can be taken outside of the quarantine zone.