LERTA moves forward Lehighton approves ordinance for tax deferment program
Lehighton has adopted an ordinance for a Local Economic Revitalization Tax Assistance program designation.
On a 6-1 vote, borough council on Monday agreed to adopt an ordinance designating the Borough of Lehighton as a LERTA district, effective May 6. Councilman John Kreitz was opposed.
Before the vote, Councilwoman Autumn Abelovsky said her concern with adopting the ordinance is that the borough doesn’t have an application in place for it.
“I do want to go forward with it,” said Abelovsky, who added she doesn’t want it to be a situation where somebody comes in and the borough isn’t ready for it.
The LERTA tax incentive program encourages property owners to renovate or update a building, with new commercial or industrial business ventures eligible for a 10-year phase-in exemption schedule of property taxes.
After the meeting, borough Manager Dane DeWire said that it won’t go into effect until May 6 so that he has an opportunity to update the borough fee schedule and produce an application, which may warrant discussion with other municipalities who adopted a similar program.
Resident/business owner Dennis Blocker contested the concept and urged council to not pass it.
Blocker said he’s all for Lehighton Ford, and not against them in any way.
“It’s just that the (property) really doesn’t meet the definition,” Blocker said.
Blocker added he believes that the administrative costs are going to be quite substantial.
He said he doesn’t agree at all with defining the borough as economically depressed.
Blocker said he believes council needs to amend the ordinance before it passes it to set aside a LERTA zone.
He said he doesn’t want Lehighton Area School District to be considered economically depressed.
“This is a disaster,” Blocker said. “Look at this and amend this ordinance.”
In February, council agreed to advertise an ordinance for a LERTA program, with a fee when someone submits an application to be part of the program.
Adam Brobst, Lehighton Ford general manager, read a statement from Matt Millen, owner of Lehighton Ford at that meeting.
Millen encouraged the borough in his letter to join the dealership in the development and redevelopment plan.
Millen said in his letter that it is his hope that council would see the value in a LERTA zone, as it would attract more development and redevelopment in the borough.
He added that a LERTA zone would pay dividends for future decades to come, and that it would be investing into the future of the borough.
Afterward, Blocker once again challenged the concept, as he doesn’t believe the program is for the borough.
Blocker said council has defined a LERTA district as the entire footprint of the borough, but that he doesn’t believe the borough has a large footprint.
Blocker said a LERTA program requires a certain amount of administrative costs and he believes it’s a risk for taxpayers.
Brobst told borough council last year that the tax deferment is probably the only way he is able to stay afloat with Ford’s policy to upgrade its facility for electric vehicles.
In January, Lehighton Ford received a $296,184 grant for the installation of three DC Fast EV chargers and six Level 2 chargers.
The grant is for chargers that will serve both public customers and the dealership’s EV service vehicles, and is part of $1.28 million DEP awarded to municipalities for Cleaner Fuel Transportation Infrastructures.