EASTON, Pa. — Northampton County Council voted Thursday to approve controversial tax breaks for developers of certain land in Upper Mount Bethel Township
County Executive Lamont McClure promised to veto the measure.
- Northampton County Council voted to extend developer tax breaks for part of Upper Mount Bethel Township
- Much of the land is set to become River Pointe Commerce Park, a massive industrial development
- County Executive Lamont McClure said he would veto the measure, in order to negotiate new conditions
The measure extends a Local Economic Revitalization Tax Assistance (LERTA) district first approved in 2018 that was set to expire.
The tax program, created by the state Legislature, allows local governments to exempt developments of certain “deteriorated” properties in “economically depressed” areas from a portion of assessed property taxes.
For the first year, property owners who build in the district would pay no tax on the value of their new development. Each year, they pay an additional 10% of their tax bill, reaching 100% in year 11.
The LERTA district in Upper Mount Bethel includes a majority of the township's industrial-zoned land, most of which is currently occupied by farms or woodlands.
Differing opinions
For many of the more than a dozen people who spoke during Thursday’s meeting, support and opposition for renewing the tax breaks were bound with opinions of River Pointe Commerce Park, a massive industrial complex planned for more than 800 acres within the district.
Those who believed the development would be more trouble than it’s worth generally opposed the proposed extension. Supporters of extending the LERTA district said they believed River Pointe would bring much-needed revenue to the township.
Others argued that because it is now open space, the land set for development can’t be considered “deteriorated,” and therefore is not eligible for tax exemptions.
Developer Lou Pektor said he intends the development to house large-scale manufacturing rather than warehouses. He said he's courting international companies drawn by the property's rail access and proximity to highways.
Despite their divisions, everyone seemed to agree that they did not want the development to become warehouses.
Developer Lou Pektor, of Bethlehem, said he intends the development to house large-scale manufacturing, and is courting “international” companies drawn to the site by rail access, proximity to highways and access to ample electricity.
He said extending tax incentives would make the development more attractive to manufacturers, but the project would move forward regardless.
Residents skeptical
Many residents who spoke at the meeting said they didn’t trust Pektor, and argued that the proposed buildings will surely become warehouses given their mammoth size.
“The developer says he doesn't want warehouses, but sadly the statistics are against it,” said Dave Friedman, a member of the township’s board of supervisors. “I don’t know any manufacturing in Lehigh or Northampton County that’s over 500,000 square feet.”
“People who live [in Upper Mt. Bethel] live there because of the rural character. We don’t need a LERTA to bring that in. You want to bring businesses in? Bring good, quality businesses in,” said township resident Sharon Delfield. “Everything, frankly folks, is not about dollars and cents.”
Pektor said that manufacturing buildings of that scale exist, and insisted the site is planned to become manufacturing. “A big box isn't necessarily a warehouse,” he said.
Several officials from Upper Mt. Bethel said the tax breaks would help attract manufacturers, which would in turn provide a financial lifeline to the township and school district. Factories generate more property taxes and jobs than warehouses of a similar size.
“My wife is the tax collector in our township,” former Upper Mt. Bethel supervisor Anthony de Franco said. “We just had a two-mill [tax] increase. In our estimation, it's probably going to be another six mills within four years if this development doesn't come through.”
In the face of opposition, two possible compromises emerged for the council to consider.
Commissioner John Cusick proposed shrinking the LERTA district, limiting tax breaks to the former power plant complex. County Executive Lamont McClure suggested tabling the measure to allow him to negotiate with Pektor directly, with the goal of limiting tax breaks to manufacturing uses, and excluding warehouses.
Council rejected both suggestions, instead voting 6-3 to approve the LERTA extension as-is.
Because both the township and the Bangor Area School District already signed off, the last hurdle the measure must clear is getting approval from McClure.
Before council voted, McClure said he would veto the measure if they passed it without changes.
