A Lehighton business owner and resident urged Carbon County to look thoroughly at a proposal to create a Local Economic Revitalization Tax Assistance District in Lehighton before making a decision.

On Thursday, Dennis Blocker approached the Carbon County Commissioners to speak about a proposal that would help Lehighton Ford upgrade its facilities to accommodate electric vehicles.

Blocker said he is representing the taxpayers of Lehighton as well as Carbon County because the LERTA program could affect the tax base moving forward if the business would close or be sold before the 10-year term expires.

“It’s an abatement program that works over 10 years, starting with zero taxes the first year,” he said, noting that every year, 10% would be added back on the business for taxes until it is back up to 100%. “Unfortunately, these are going to be businesses for profit. So businesses for profit are going to be assisted by not paying taxes. And what happens is when those taxes aren’t paid by the business, it’s going to come back on the taxpayer. Each community, school district and the county has a budget and they don’t meet their budget because these taxes aren’t coming in ... they’re going to come back to the taxpayers. That is my concern.”

Blocker added that if a business in a LERTA zone closes or is sold before the 10 years is up, then the taxes on that business are lost since the LERTA is not transferable.

“There’s such a risk to this program that I don’t feel that it’s worthy,” Blocker said. “I feel that the commissioners and the taxpayers should be aware of this before we adopt a program like this.

“I am hoping that you gentlemen do some research on this program.”

Commissioners’ Chairman Wayne Nothstein said he was aware of the proposal, but that the county has not yet received any formal request for this matter.

For a LERTA to go through, the school district, county and municipality in which the request is made must approve it.

Lehighton, last week, tabled the matter following some discussion with Blocker, who at that meeting, said that the automotive industry’s model is to consolidate companies, with one owner for several locations. Lehighton Ford is its own entity.

He said that the best way to support local industry is to shop local, buy from the mom and pop shops and keep the tax base thriving that way, not by giving tax breaks that carry a risk.

Commissioner Rocky Ahner said he was concerned of the “ripple effect” where if one business is approved, then more companies begin doing it and then the school district loses a thousands of dollars in taxes the first year.

“I don’t think the school district or the borough realize how that can be devastating to the taxing entities and like you said, it’s going to go back to the taxpayer,” Ahner said. “Where are they going to make that $200,000? It’s going to be you and I.”

Blocker agreed saying the LERTA program sounds good on paper, but the state never funded it or updated it since it was create d in 1977.

Commissioner Chris Lukasevich asked if LERTA wouldn’t be passed for this project, if it would affect the investment that is being made in the Lehighton community.

Lehighton Ford plans to demolish its current building and construct a $5 million upgraded facility along Route 443.

In June, Adam Brobst, Lehighton Ford general manager, approached Lehighton Borough Council, saying with high interest rates, a tax incentive program would help with their planned renovation/expansion and that the tax incentive program encourages property owners to renovate or update a building.

Lehighton School District officials, at council’s meeting, suggested designating a five-year plan instead of a 10-year plan and include the area of the old KIA Dealership along Route 443 as the LERTA zone instead of the whole borough.

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