Mahanoy Township approves tax break for expanded industrial zone
MAHANOY CITY – New development in Mahanoy Township’s recently-expanded industrial zone will get a partial tax break for a decade, supervisors approved Thursday.
Supervisors held a hearing on to consider input on a Local Economic Revitalization Tax Assistance plan they were considering. It was followed by the regular monthly township meeting.
About 30 people packed the township building for the hearing.
The proposal offers 75% tax abatement for new industrial, commercial, or business development in the Industrial/Manufacturing zoning district in the township for ten years.
Effectively, businesses would pay 25% of property taxes due on any new development for the next ten years.
Township supervisors voted to expand the Industrial/Manufacturing zoning district atop Broad Mountain, after receiving criticism and pushback at a February hearing.
At Thursday’s hearing, supervisors heard testimony both for and against the proposal.
Joie Green, Mahanoy Area School District Superintendent, said the district is in favor.
“It would drastically improve the district” and its financial position if proposed developments came to fruition, she said.
Frank Zukas, CEO of the Schuylkill Economic Development Corporation, outlined numerous examples of other municipalities in the county enacting LERTA.
“It has been used extremely effectively and it’s a critical part of the project at hand,” Zukas said. “It does have an effective record to look at and we think that it would be a wise decision to move forward with consideration of it today.”
Zukas added that the 25%/75% schedule being considered was a compromise between developers and taxing bodies.
In February, supervisors and the public learned that two companies are considering developing warehouses atop the Broad Mountain in the township. Trammel Crow Company wants to build a 1.3 Million square foot warehouse off the Morea Road while Hillwood Investment is planning two warehouses on either side of Vulcan Hill Road.
“In my opinion, I think they would probably opt out as far as the project,” Zukas said of the developers if supervisors voted down the LERTA plan.
An attorney from Hillwood confirmed the same under questioning from a Lisa Broomell-DiCasmirro, who lives near one of the proposed projects.
She presented the township with a petition against the plan.
Broomell-DiCasmirro said she didn’t believe a tax break was necessary to coax the development to the area.
Residents also raised concerns regarding infrastructure impacts and ownership of the warehouses, including concerns of complete abandonment and tax delinquency. Should a property receiving a LERTA abatement become delinquent on taxes, they lose the abatement benefit.
In the regular meeting following the hearing, supervisors voted 3-0 to approve the measure.
They also voted 3-0 to draft regulations to handle potential data center development. A draft is expected to be prepared for an upcoming meeting.
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