EMMAUS, Pa. — Developers planning to revive a blighted former industrial site got their wish Monday as Borough Council approved their application for a special tax abatement.
That sets the stage for transformation of the overgrown former foundry site at 300 Furnace St., which has been unused since 1995, into a development of 144 apartments in four buildings.
"It's pretty exciting."Emmaus Borough Manager Shane Pepe
The procedure and legislation for the Local Economic Revitalization Tax Assistance, or LERTA, passed unanimously in September.
The legislation was prompted by Westrum Development Co.'s request to manage its risk for redeveloping the property.
"Once you stick that shovel on the ground, once you knock that first building down, once you put your water testing in the ground, that's when you really understand what risk you've got," Michael Maier, a representative for Westrum Development said at the meeting.
Borough officials say that the property is environmentally contaminated and functionally obsolete, and has been frequently referred to as the biggest blighted site in the municipality.
"We've had this pegged as our number one blighted property in the borough for decades, and we see it's finally coming to fruition here," Borough Manager Shane Pepe said.
"It's pretty exciting."
'What we needed for years and decades'
In a June presentation to the council, Westrum Development illustrated its plan for 80 one-bedroom and 64 two-bedroom units.
Mock-ups for the buildings were shown Monday, noting inspiration from other buildings in the borough such as the location of South Mountain Cycle.
A property approved for the LERTA program only pays a gradually increasing portion of taxes on the property's real estate value in addition to an annual flat fee of the original tax cost to incentivize development.
Based on a presentation in June, Westrum is seeking a 100% property tax abatement starting in 2026, with tax increases of 10% over the next 10 years.
"This is what exactly we needed for years and decades — and decades we have had this problem. We didn't know what to do."Emmaus Councilman Nathan Brown
Westrum previously argued that once fully in effect, the real estate tax valuation for county, school and borough taxes could multiply as much as 49 times what the property's current use provides, with an estimated $120,000 added to local property taxes.
Maier also noted a DEP program that gives liability protection for loans made on the project.
"The cleanup, you know, just for the ground itself, is huge," Councilman Nathan Brown said.
"This is what exactly we needed for years and decades — and decades we have had this problem. We didn't know what to do."
