Lehighton still discussing tax deferment request
Lehighton remains noncommittal on a tax deferment program to assist Lehighton Ford in the upgrade of its facility for electric vehicles.
Borough council on Monday revisited discussion on an ordinance establishing the Local Economic Revitalization Tax Assistance District for the borough.
As part of the discussion, several council members weighed in on the topic.
Councilman Ryan Saunders said he believes “there are a lot of benefits” to having a LERTA district.
“I think there’s a lot of positive benefits for it if we do it right,” Saunders said. “There’s a lot of variables to consider.”
Adam Brobst, Lehighton Ford general manager, explained that the old building will stay up, before they go ahead and build a new one, at which time the old building would be torn down.
“What we want to build is significantly better (than the current building),” Brobst said. “We do want to tear down the old building.”
Saunders said he understood their situation, but added he believes council needs to continue with its research.
“There’s so much out there,” he said. “Rather than just make a blanket statement, I don’t think we’re there yet.”
Councilwoman Autumn Abelovsky shared her thoughts.
“I am still in favor of adopting this at some point,” Abelovsky said.
Saunders then suggested that a committee be formed, which will be spearheaded by himself and Abelovsky to come up with a LERTA zone.
Last month, council on a 5-0 vote tabled the adoption of an ordinance establishing the LERTA district for the borough.
Before the vote, resident/business owner Dennis Blocker addressed council about the LERTA program.
Blocker told council he was representing the taxpayers, and believes the program would be a burden on the taxpayers.
Blocker added that as a business person, he fully supports the businesses in the community.
He said that the model in the automotive industry is to consolidate, which leaves the mom and pop shops out in the cold.
Blocker then told council he hoped members would do more research before approving the program.
Lehighton Ford plans a $5 million upgrade to its facility on Route 443.
Brobst 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 said at that time council wanted to include all the businesses, and be sure not to exclude anyone.
Councilwoman Autumn Abelovsky suggested at that time that $75,000 would mean a huge amount to businesses.
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.