Lehighton will support a tax deferment program to assist Lehighton Ford in the upgrade of its facility for electric vehicles.

Borough council unanimously agreed on Monday to advertise the Local Economic Revitalization Tax Assistance zone after a public hearing on the LERTA District.

Lehighton Ford plans a $5 million upgrade to its facility on Route 443.

Adam Brobst, Lehighton Ford general manager, approached Council in June, saying with high interest rates, a tax incentive program would help with their planned renovation/expansion.

The dealership plans to demolish its buildings and build new ones, though the dealership will remain open.

A LERTA District serves as a tax incentive program to entice businesses and new businesses to come into the area.

The tax incentive program encourages property owners to renovate or update a building.

Under the program, new commercial or industrial business ventures are eligible for a 10-year phase-in exemption schedule of property taxes.

The only member of the public who commented on the LERTA District was Lehighton Area School District Business Manager Ed Rarick, who was joined by district Superintendent Dr. Christina Fish and school board Director Brian Shaner.

Rarick suggested designating a 5-year instead of 10-year plan, with Route 443 as the LERTA zone, which could include the old KIA Dealership along 443, instead of the whole borough.

He noted that to qualify, eligible projects must have a proposed improvement in excess of $75,000.

Rarick said that spending that amount over 10 years doesn’t seem to be financially responsible.

Councilwoman Lisa Perry explained council’s intentions of having the entire borough.

“We just wanted to include all the businesses,” Perry said. “(And be sure) not to exclude anybody.”

Councilwoman Autumn Abelovsky suggested that $75,000 would mean a huge amount to businesses.

“It would allow for the larger and smaller (businesses) to benefit from it,” Abelovsky said. “It’s more for us to have the businesses reap the benefits.”

Council will look to advertise the LERTA ordinance for adoption at next month’s meeting.

The businesses will also ask Carbon County and the school district to adopt the tax incentive.

In the event the request would be approved by at least two of the three taxing bodies, it would render the improvements to the Lehighton Ford property 100% exempt from real property tax in the first year; 90% exempt in the second year; 80% exempt in the third year, and so on until the dealership is paying the full property tax on the improvements after year 10.

Brobst said Lehighton Ford is supposed to have the building done by March 31.