A $2.4 million grant previously awarded for a proposed Northface industrial park in Palmerton is in limbo.

The Palmerton Business Park was discussed during a recent review by the Northeastern Pennsylvania Alliance in Pittston.

As of May 9, no tenants were interested in the property off Route 248.

Since there are no potential tenants, the Multimodal Office will be rescinding the funds.

Carbon County Commissioner Rocky Ahner, who serves on the Metropolitan Planning Organization run by NEPA Alliance, attended the meeting.

“It was on our agenda that they’re getting out of it,” Ahner said. “The CDBG committee is actually going to rescind the money.”

Ron Young, PennDOT spokesperson, said the grant is contingent upon a tenant occupying the property.

“The developer indicated about a year ago their tenant for the site was no longer interested,” Young said. “The PennDOT Multimodal Office told Phase III Environmental LLC they need to find another tenant, if not the grant will be rescinded, and Phase III can reapply later.

“The Multimodal Office asked Phase III to send a letter to the Multimodal Office indicating they do not have a tenant and will not be moving forward with the project, but Phase III has yet to send the letter. Phase III representatives will need to provide any information about a potential tenant or status of the letter.”

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 proposed future Palmerton Business Park.

Ahner added, “If nothing’s going on there, there’s a lot of other things that can be done.

“I think it would be good if they look into something else besides warehouses,” he said. “A warehouse is just going to create more tractor-trailer traffic, and we’re competing with 78 and Route 80.

“Who would want to bring a warehouse and shipping place to this area? We’re looking for something that would be a manufacturer or corporate office.”

Tax deferral turned down

In July 2023, Palmerton Borough Council expressed reluctance to grant a seven-year tax abatement to Northface Development for a warehouse project on the former New Jersey Zinc Company site off Route 248.

Then Chief Operating Officer George Petrole, now retired, asked council to approve a Local Economic Revitalization Tax Assistance ordinance, explaining that tax relief was essential to the project. He said he had been remediating the site for 14 years and that cleanup was nearly complete.

Council members were reluctant. Councilman Andrew Hollywood said the borough wants to thrive “but no one wants warehouses,” asking whether Northface could propose something else. Borough Manager Autumn Canfield reminded council it could not deny a permitted use.

Councilwoman Holly Hausman Sell said, “It’s been a rough 14 years for the Borough of Palmerton,” adding that such a large project would strain police and fire departments and lacked public support.

“I haven’t received any positive feedback; it’s all negative,” Councilman Kris Hoffner agreed. Hollywood added that warehouses bring “traffic, crime, and more.”

Councilman Cory Kepner asked if Northface would consider a three-year abatement instead; Petrole said they were open to ideas. Hausman Sell suggested Northface “has made its money” and only wanted to sell the property. Petrole replied that the site “could be developed as anything” and said the company had spent more than $20 million — mostly with local vendors — and already created jobs.

In 2021, all three taxing bodies — the borough, Palmerton Area School Board, and Carbon County Commissioners — rejected a LERTA request.

Northface had proposed up to 2 million square feet of warehouse and logistics space, promising about 475 construction jobs and 1,500 full-time positions.

The project received $100,000 from the state Department of Community and Economic Development’s Multimodal Transportation Fund for a direct Route 248 entrance and connection to Northface Road, which would link 248, Delaware Avenue, and Mauch Chunk Road. Plans also called for a new traffic signal at Delaware Avenue and Industrial Drive.