Lehighton appears to be on board with a tax deferment program that would allow Lehighton Ford to upgrade its facility for electric vehicles.

Former borough Manager Steve Travers told borough council on Monday that he had been approached by Adam Brobst, Lehighton Ford general manager, about the borough considering a Local Economic Revitalization Tax Assistance zone. Travers was let go after an executive session later in the meeting.

“We would be responsible for adopting an ordinance,” Travers said. “We would have to work with the district and the county.”

Brobst, who was in attendance, said it’s no secret that interest rates are through the roof, and added that they are working to get their proposed building under budget.

“A LERTA zone would allow us to move forward with this property,” Brobst said.

Councilman Ryan Saunders said that the borough was asked a few years back to consider a LERTA District by Kathy Henderson, of the Carbon Chamber & Economic Development Corporation.

“We were all in favor of it,” said Saunders, who added it never quite came to fruition.

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.

Brobst said that Lehighton Area School Board was open to adopting a LERTA zone.

Lehighton Ford is asking the school district, borough, and Carbon County commissioners to approve the tax deferment program.

Brobst told the school board at its workshop last month that the upgrade will cost about $5 million, and the dealership is asking the three parties to excuse a percentage of the additional tax revenue the new facility would bring in.

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.

Travers explained some of the benefits associated with a LERTA District.

“It’s going to stimulate people to come in and rehabilitate a blighted property,” Travers said. “It’s been very successful in a lot of municipalities.”

Travers said the borough would have to identify a district, adopt an ordinance, and then talk with the school district and the county, who in turn would have to do their own ordinances.

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

“We are confident we will be able to have it done,” Brobst said.

Saunders said he believes it’s something that council would like to do to help business owners.

Last month, council on a 6-0 vote approved a waiver to a section of the Subdivision and Land Development plan for the Lehighton Ford Land Development Project.

The dealership located along Blakeslee Boulevard Drive plans to demolish its current buildings and build new ones, though the dealership will remain open.

He said Lehighton Ford will then build a new building with a new showroom, new shop, and once that’s completed, they will then tear down the existing showroom at their shop.

Travers added the dealership will eventually be parking some of their in-stock vehicles across the street.

He said that Ford is changing its model of how they operate, and is requiring Lehighton Ford to upgrade their building to be able to handle the sale of electric vehicles, and the repairs of electric vehicles.

Charging stations will be added.

The project is expected to start sometime this year.