EMMAUS, Pa. — Plans to create a special tax district for a proposed 144-unit apartment complex on blighted land were delayed Wednesday by a proposed amendment to the bill.
Lehigh County Board of Commissioners passed the amendment, which directs the property owner to agree to give $5,000 for each year of the five-year tax abatement plan to The Seed Farm program at 5854 Vera Cruz Road.
The Seed Farm is a program of the Second Harvest Food Bank.
It provides new farmers with valuable, practical experience and skills on a training farm, as well as the opportunity to launch sustainable farm businesses on the borough farm.
Property owner CSW Furnace Street Emmaus LP of Montgomery County, and Westrum Development Co., the proposed developer, are seeking tax relief on an 8.5-acre deteriorated parcel at 300 Furnace St.
The owner is seeking approval of tax relief authorized by state law.
LERTA, or the Local Economic Revitalization Tax Assistance Act, is a Pennsylvania state law that lets local taxing authorities offer tax abatements to incentivize redevelopment of deteriorated or underutilized properties and encourage new construction in economically distressed areas.
The tax incentives encourage redevelopment of deteriorated properties that might not otherwise be developed.
'Benefitting the community'
The Furnace Street property has been abandoned since 1995. The current site conditions include an abandoned building, overgrown trees and shrubs.
The site use was primarily industrial, including fuel oil distribution, petroleum storage tank repair, cleaning and lining and a machine shop foundry.
On Monday, in a meeting of the commissioners' executive committee prior to the full meeting, Commissioner Zach Cole-Borghi proposed the amendment to the bill.
"Maybe this sets a precedent for developers looking to do business in Lehigh County. I want investment in our community.”Zach Cole-Borghi, Lehigh County Commissioner
The amendment was unanimously approved, reverting the bill to a first read and preventing a vote on Monday.
A second read and vote will be at the next full commissioners meeting on May 14.
“This [amendment] is appropriate and helps with the abatement of money to the county,” said Commissioner Jeffrey Dutt, who sponsored the bill.
“This provides money to a great organization. It comes down to benefitting the community as a whole.”
Said Borghi: “Maybe this sets a precedent for developers looking to do business in Lehigh County. I want investment in our community.”
Added Commissioner Geoff Brace: “This [amendment] could set a trend.”
Details of the LERTA
Dubbed “Foundry Flats Emmaus,” the project lists 144 residential units over four buildings, with 80 one-bedroom units and 64 two-bedroom units.
A clubhouse with amenities also is planned.
The development would have 317 parking spaces, or 2.2 spaces per unit.
The tax exemptions will be assessed on a graduated scale over five years.Terms of proposed LERTA
Emmaus held a public hearing to determine the boundaries of the area or areas to be designated as deteriorated areas pursuant to the requirements set for in LERTA.
The borough in September adopted an ordinance providing for tax exemption on improvements or new construction in deteriorated areas.
In February, the East Penn School District adopted a resolution by a 5-4 vote to provide tax exemption on the property pursuant to LERTA.
The tax exemptions will be assessed on a graduated scale over five years.
For the first year immediately following the date upon which the improvement becomes assessable, 100% of the eligible assessment shall be exempted.
The second year: 80% is exempted.
The third year: 60% is exempted.
The fourth year: 40% is exempted.
The fifth year: 20% is exempted.
After the fifth year, the exemption would be terminated.
The property owner would be responsible for the full amount of any interim real estate tax bills issued for the tax year(s) of the county in which part or all of the new construction or improvement is completed, but the final phase of the new construction or improvement is not yet completed.
Other business
In other business Wednesday, county commissioners approved:
- The continuation of an agreement with HNTB Corporation, an engineering company, to lease the third floor of the county-owned Hamilton Financial Center building at 640 W. Hamilton St. in Allentown.
- An agreement for the county to lease a real estate property at 626 N. Penn St., Allentown, to house participants in the county jail’s Transitional Housing Program. The property is owned by Conference Homes LLC. The housing program helps residents establish goals that they believe will move them to the next step in their lives. Rent is $1,900 per month, Commissioner Brace said.
- An extension of a current agreement with Affinity Health Services Inc. to provide operational consulting and bill services for Cedarbrook Senior Care and Rehabilitation through December 2026.
- A fifth amended and restated agreement with Magellan Behavioral Health of Pennsylvania Inc. to act as the primary contractor for the county’s HealthChoices Behavioral Health Program for 2026. The program provides managed care for county residents who participate in the medical assistance program.
