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Council approves incentive package for Project Block; staff cites investment, jobs and tax illustration
Summary
Lancaster County Council approved a resolution and advanced an ordinance on first reading to offer a special source revenue credit (SSRC) to Project Block, a manufacturer that staff said will invest in equipment and create about 30 jobs.
Lancaster County Council voted unanimously on a resolution committing to enter a special source revenue credit (SSRC) agreement with an entity identified as Project Block and then approved first reading of an ordinance authorizing the SSRC agreement.
Economic development staff described Project Block as a subsidiary of a European company that purchased an existing 30,000-square-foot building and 20 acres in District 1. Staff said most of the near-term investment will be in new equipment (approximately $14,000,000) and that the company intends to employ 30 people by the end of a five-year investment period. Staff presented average hourly-wage estimates (about $26.69 per hour by the end of 2025; a projected $22.32 hourly average at full production across the workforce) and described benefits that include medical, dental, vision and a matching 401(k).
Staff presented a tax-collection illustration comparing ad valorem taxation and an incentive structure. They said a straight ad valorem tax over a five-year period would aggregate to about $1,800,000; under an illustrative SSRC/FILO arrangement the county would collect roughly $1.2–1.3 million in that same period. Staff said the proposed SSRC (25% credit each of five years) accounts for about $319,000 foregone over five years and that the net to the county over that five-year period would be about $957,000. Staff also said that after the SSRC period ends the county’s net collections would increase in subsequent years (illustrated as approximately $2.5 million across years six through twenty in staff materials). Council approved the resolution committing to the SSRC terms and advanced the implementing ordinance on first reading; both votes were unanimous among members present.
Council members asked about tax comparisons and whether incentives attract projects to the county; staff responded that incentives are often decisive for manufacturers choosing a location. No amendments to the resolution or ordinance were offered during the meeting.
