Palmerton borough officials are reluctant to approve a 7-year tax abatement for Northface Development on the former New Jersey Zinc Company site.

George Petrole, chief operating officer, asked borough council last week to approve a Local Economic Revitalization Tax Assistance ordinance for the property located off Route 248.

The Local Economic Revitalization Tax Assistance, a tax abatement program for redevelopment of aging or deteriorating properties, allows for a tax reduction for a set time.

Petrole last approached council in April 2021, asking for a LERTA.

“The logistics of developing the site have changed quite a bit,” Petrole said.

Petrole, saying a tax abatement is a necessary part of the project, said, “We want to work with you, and we hope you want to work with us.”

Petrole said he’s been remediating the site for 14 years.

“It’s almost finished,” he said. “We’re close to getting our issues with PennDOT (straightened out); hopefully by September, we’ll have our (point of access).”

Warehouses not wanted

Councilman Andrew Hollywood said the borough wants businesses to thrive, but no one wants warehouses.

“I don’t want to help warehouses come to town,” Hollywood said. “I know there’s been great backlash on warehouses.”

He asked if Northface could come up with something else for the site.

Borough Manager Autumn Canfield reminded council that it cannot deny a plan if it’s a permitted use.

However, Councilwoman Holly Hausman Sell said, “It’s been a rough 14 years for the borough of Palmerton.”

Hausman Sell said a project of this magnitude would take a toll on the police and fire departments. She said she’s heard from residents that they aren’t in favor of tax relief for this project.

Councilman Kris Hoffner agreed.

“I haven’t received any positive feedback; it’s all negative,” Hoffner said.

Petrole said he couldn’t believe there are people who don’t want to see the project advance.

Hollywood said warehouses bring trouble in the form of traffic, crime, and more. “Can’t you find different industry going in there? If you could bring jobs. Let’s adjust, let’s adapt. Bring us some other businesses.”

Three years?

Councilman Cory Kepner asked Petrole if he would consider a three-year period. Petrole said they’re open to ideas.

Hausman Sell suggested that Northface has made its money, and is now interested in selling the property.

Petrole noted that the property “could be developed as anything.”

Hausman Sell said that Petrole has been the face of the project, but that “you’ve not been a great business partner (of the community).”

“Up until this moment, I have not heard anything positive from our constituents,” she said. “As of today, I don’t feel the sentiment has changed.”

Petrole said, “We spent more than $20 million, most of it with local vendors, so don’t tell me ...”

Hausman Sell retorted “You made a lot of money here, and you know you made a lot of money.”

“This is America, isn’t it?” Petrole shot back.

Community input

Council President Terry Costenbader said council members should get community input before the next meeting.

Kepner said he wants to make sure the town is protected. He said ha also would like to see something other than warehouses go in at the site.

Petrole cautioned council that not voting for LERTA wouldn’t necessarily stop warehouses from coming to the site.

Resident Marj Federanich asked what would on the site instead of warehouses.

Hausman Sell said, “He doesn’t care who develops on it. The LERTA makes it more attractive.”

Canfield reiterated that municipal zoning has to allow for every use.

“If warehouses are a required use and they meet all the requirements, then council can’t turn them down,” she said.

Petrole asked if they would pass the tax break for something other than warehouses.

Councilman William Gallagher said, “There has not been anything positive to the community in the last 14 years (other than the removal of the building itself),” Gallagher said.

Petrole said they’ve already created jobs.

Previous request denied

In April 2021, council denied a request from Northface Development for a LERTA. The other two taxing bodies, Palmerton Area School Board and Carbon County Commissioners also voted down the request.

All three have to agree for the LERTA to move forward.

Northface said it had planned 500,000-square-foot warehouses. Before construction, however, it would enter into lease-to-own agreements with the companies who would occupy the warehouses.

Petrole said at that time the anticipated 2 million square feet of transportation, logistic and warehouse project in Palmerton would create about 475 construction jobs and bring about 1,500 new full-time employees.

In April 2022, Phase III Environmental LLC received $2.4 million to construct a right-in/right-out intersection along Route 248, and a lighted intersection along Delaware Avenue at the future Palmerton Business Park.

The project also received $100,000 from the Pennsylvania Department of Community and Economic Development Multimodal Transportation Fund for a direct entrance from Route 248 to the business park and connection to Northface Road.

Northface Road will also provide publicly accessible connections between 248, Delaware Avenue and Mauch Chunk Road.

The project calls for a traffic light at the intersection of Delaware Avenue and Industrial Drive.