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Carbon hears tax request for warehouses

The Carbon County Commissioners heard from a Palmerton-area developer regarding his request for inclusion in the Local Economic Revitalization Tax Assistance program.

On Thursday, George Petrole, chief operation officer for Northface Development in Palmerton, proposed a 10-year tax abatement program that would help him build four approximately 500,000-square-foot warehouses, one each year starting in 2022, on the property located just off Route 248.

Kathy Henderson, director of economic development for the Carbon Chamber & Economic Development Corp., also presented an overview of the LERTA program.

Under the program, the school district, Palmerton Borough and Carbon County would excuse a percentage of the additional tax revenue the buildings would bring in after they are constructed.

Petrole proposed that in the first year of each building being constructed, 100% of the additional tax revenue would be excused, followed by 90% in the second year, 80% the third year and so on until after 10 years after the last building is constructed, the full additional tax amount, estimated at just over $2.8 million, would be collected.

Petrole also said the project would create 475 construction jobs and approximately 1,500 full-time jobs once the buildings are constructed.

The commissioners asked several questions. They asked if other programs are available instead of LERTA. Commissioners asked if the jobs would have family sustaining wages.

Commissioners also pointed out that the location isn’t central to various interstates like there are in the Hazleton and Lehigh Valley areas.

Commissioner Rocky Ahner focused on job creation and infrastructure.

“At the federal and state level there’s always talking about investing in infrastructure,” he said. Investing in infrastructure is not just in blacktop, it is creating off and on ramps or intersections. This is the most important part for this project to survive.”

He said all taxing entities are giving up something with this proposal and asked what is the county’s return on investment for this with regards to good paying jobs.

Petrole said that there are other options, such as the KOZ zones, but that option hasn’t been investigated.

He also noted that he already has an interested business.

Commissioner Chris Lukasevich asked if the surrounding counties have LERTA programs in place.

Henderson said there was in a number of the counties.

Lukasevich also pointed out that Northface has a “steep uphill battle to develop economically attractable warehouses.”

The commissioners took no action on the request at this time.

Commissioners’ Chairman Wayne Nothstein said that the county, Palmerton school district and borough are still discussing the matter.

Earlier this month, Palmerton Area School District directors said they would support a five-year tax abatement plan for the project, but did not discuss what percentages would be under that plan.

Last month, Palmerton Borough Council said it would support Northface moving its point of access from Route 248 into the development 600 feet to the east. The current proposed access point is to the western end of the property, closer to Bowmanstown.