Lehighton could pass an ordinance for a tax deferment program to assist Lehighton Ford in the upgrade of its facility for electric vehicles.

Borough solicitor Jim Nanovic informed borough council on Monday of the process by which it would need to follow in order for that to occur.

Nanovic said that council would have to schedule a public hearing at next month’s council meeting, and that at the conclusion of that meeting, it could make notice to advertise for adoption at its September meeting.

Former borough Manager Steve Travers told council last month that he had been approached by Adam Brobst, Lehighton Ford general manager, about the borough considering a Local Economic Revitalization Tax Assistance zone. Travers was let go after an executive session later that evening.

Travers said at that time the borough would be responsible for adopting an ordinance, and would have to work with the district and the county.

Brobst, who attended last month’s meeting, said it’s no secret that interest rates are through the roof.

He added at that time that they are working to get their proposed building under budget, and that a LERTA zone would allow them to move forward with this property.

Councilman Ryan Saunders said that the borough was asked a few years back to consider a LERTA District by Kathy Henderson, of the Carbon Chamber & Economic Development Corporation, but that it never came to fruition.

A LERTA District serves as a tax incentive program to entice businesses and new businesses to come into the area.

The tax incentive program encourages property owners to renovate or update a building.

Under the program, new commercial or industrial business ventures are eligible for a 10-year phase-in exemption schedule of property taxes.

Brobst said that Lehighton Area School Board was open to adopting a LERTA zone.

Lehighton Ford is asking the school district, borough, and Carbon County commissioners to approve the tax deferment program.

Brobst told the school board at its workshop in May that the upgrade will cost about $5 million, and the dealership is asking the three parties to excuse a percentage of the additional tax revenue the new facility would bring in.

In the event the request would be approved by at least two of the three taxing bodies, it would render the improvements to the Lehighton Ford property 100% exempt from real property tax in the first year; 90% exempt in the second year; 80% exempt in the third year, and so on until the dealership is paying the full property tax on the improvements after year 10.

Travers said the borough would have to identify a district, adopt an ordinance, and then talk with the school district and the county, who in turn would have to do their own ordinances.

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

Saunders said he believes it’s something that council would like to do to help business owners.

In May, council on a 6-0 vote approved a waiver to a section of the Subdivision and Land Development plan for the Lehighton Ford Land Development Project.

The dealership located along Blakeslee Boulevard Drive plans to demolish its current buildings and build new ones, though the dealership will remain open.

Travers said that Ford is changing its model of how they operate, and is requiring Lehighton Ford to upgrade their building to be able to handle the sale of electric vehicles, and the repairs of electric vehicles.