Lehighton Area School District’s board of directors is considering whether to support Lehighton Borough’s recently adopted Local Economic Revitalization Tax Assistance program, with members citing legal concerns and differing opinions on its scope.

“We received a list of concerns our solicitor had regarding some of the legalities of LERTA, and those have been passed on to the borough,” LASD Board President Joy Beers said Monday night. “We’re hoping that these legal changes will be made, and then the board can reassess whether or not the district wishes to support the LERTA. Right now, the borough applies the LERTA to the entire borough, and I think some board members were OK with that, but some wanted to restrict it to a smaller footprint.”

When Beers asked board members for their thoughts last week, director Jeremy Glaush said, “After a better explanation as to why it was done the way that it was, I believe that I can look over that now. I think having it within the limits of the borough is just fine.”

The borough adopted an ordinance for a LERTA program designation in April 2024. The 6-1 vote designated the entire borough as a LERTA district, effective May 6, 2024. Councilman John Kreitz was opposed.

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.

In February 2024, council agreed to advertise an ordinance for a LERTA program, which included a fee when someone submits an application to participate.

During that meeting, Adam Brobst, Lehighton Ford general manager, read a statement from Matt Millen, owner of Lehighton Ford.

Millen encouraged the borough in his letter to join the dealership in its development and redevelopment plan.

“It is my hope that council would see the value in a LERTA zone, as it would attract more development and redevelopment in the borough,” Millen said in his letter.

Brobst told borough council in 2023 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.

“I don’t think (the school district) can go wrong supporting LERTA, because we aren’t going to lose anything in tax revenue as a result of it, but we could end up seeing some additional development within the borough limits, which would, over time, increase the values of properties,” director Duane Dellecker said. “That would help the school district. So I’m not against it.”