The Luzerne County Council took a real estate tax break decision off the voting agenda for Tuesday.
Brian Thornton, the Council Vice Chairman, suggested delaying the vote on the request for a tax break on two neighboring parcels in the Humboldt Industrial Park in Hazle Township, stating that more examination was required.
Romilda Crocamo, the County Manager, mentioned that she is still in talks with the developer, Flint Development, to address the concerns raised by Councilman Harry Haas, and more time is necessary.
During the council’s work session on March 12, Haas had advised Flint to decrease its abatement percentages.
Brittany Stephenson, a Councilwoman, also stated publicly that she does not support the pending break and called for a comprehensive discussion on a countywide economic development plan.
In response, Flint recently proposed changes to its request for the new “Hazleton Logistics Project,” which will generate additional tax revenue to the county during the break, as detailed in an email sent to council.
Originally, the developer wanted a 90% abatement on new construction for the first seven years, 80% in the eighth year, 70% in the ninth year, and 60% in the tenth and final year.
In its updated proposal, the company asked for these tax forgiveness percentages to start from the first year and end with the tenth: 90%, 87.5%, 85%, 82.5%, 80%, 75%, 70%, 65%, 60%, and 55%.
The relief is part of the Local Economic Revitalization Tax Assistance (LERTA) program for run-down properties, which means the property owner pays real estate taxes on the land throughout the break and gets a discount on taxes for the new development.
In a subsequent communication from Flint, it reiterated that the end user ultimately benefits from tax savings through the industry-standard triple net lease structure. The company stressed the need to remain competitive with nearby developments in terms of taxes for the success of the project in attracting desirable end users.
“As per Councilman Haas’ request, we re-evaluated the numbers after the work session and believe that the modified LERTA schedule is still achievable,” the company stated.
Without the Hazleton Logistics project, the annual real estate tax payments to the county from the site are currently $6,158.
Under the revised proposal, the company’s annual payments to the county would increase to $54,187 in the first year of the LERTA, to $166,381 in the tenth and final year of the break, and to $338,057 after the break expires, according to its communication.
Haas mentioned after Tuesday’s meeting that he appreciates the revised proposal but feels that it should start at around 55%, not end there, for him to support it.
Flint intends to invest $75 million to build two industrial buildings totaling 802,732 square feet on 66 acres of former mine-damaged land to meet the market demand from various potential warehousing, manufacturing, and other industrial users, as stated in its presentation.
Authorities in Hazle Township and the Hazleton Area School District have already approved the tax break for Flint.
Supporters of LERTAs argue that such incentives are vital for attracting investment and securing new development that will significantly increase real estate tax revenue in the future for the county and other taxing entities.
It's not possible to calculate the exact tax revenue the county will get from all the previously approved LERTAs when they end because some major developments are still preparing sites and haven't built assessed buildings yet.
However, county Director of Assessments Kristin L. Montgomery created a report for Crocamo, which was given to the council, that provides a snapshot of some future gains.
Right now, the county is reducing $484.46 million in assessed value for 30 active LERTA projects.
One of these projects expires this month with an assessed structure value of $14.54 million, leading to an additional $92,420 in county tax revenue each year at the current tax rate, according to Montgomery’s report.
The reduced taxes on the other 29 properties currently total $469.9 million, which would result in nearly $3 million in extra county tax revenue once the breaks expire. The expected revenue will increase as more buildings are constructed.
Election update
Emily Cook, the County Acting Election Director, gave an update on the April 23 primary election during Tuesday’s work session.
More than 21,000 mail ballot applications have been received so far, and the election bureau plans to start mailing them to voters by the end of this week, Cook mentioned.
Regarding the government study commission race, Cook stated that a sticker will be placed on the electronic ballot marking devices at polling places to alert voters that there are 17 commission candidates and that they need to touch a scroll-down tab to see all their names. This sticker is in addition to a previously announced screen alert in red capital letters.
Councilwoman Joanna Bryn Smith highlighted that independent voters who are not registered Democrats and Republicans will have a chance to vote on the study commission candidates and referendum in the primary.
In the primary, voters will select seven citizens to serve on the study commission, but they will only be seated if a majority of county voters approve a referendum on the ballot asking if they want to activate a commission.
Concerning the paper shortage for the November 2022 general election, Thornton asked if there is “plenty of paper.”
Cook mentioned that about 1.2 million sheets of paper are on hand and that all ballot marking devices are fully stocked.
