Board tables LERTA for Furnace Street brownfield after extended debate on tax trade-offs

The East Penn SD Board of School Directors tabled consideration of a local economic revitalization tax assistance (LERTA) resolution for the Furnace Street apartment redevelopment after more than an hour of public board discussion and questions from members.

Administration and the developer previously briefed the board on a proposed five-year tax-exemption schedule tied to remediation of a brownfield site. “The resolution that's before the board this evening… is intended to be an action item, but this is really a time for the Board to discuss the resolution,” Doctor Campbell said, describing revisions administration made following prior board feedback.

Board members split on whether to approve the exemption. Several trustees supported providing a targeted abatement to encourage redevelopment; others opposed or urged caution because the projected tax revenue foregone would offset district budget priorities.

- Fiscal trade-offs: Board member Mr. Smith detailed the estimated revenue the district would forgo under the proposed five-year schedule and compared it to last year’s budget priorities: delaying items such as one English language arts interventionist and student-advisor positions in year one and other staff in subsequent years. Smith summarized his totals as roughly $591,190 in foregone revenue across five years versus about $587,000 in last year’s planned priorities he would be forced to delay. - Development and remediation: Ms. Klotz noted the site’s brownfield status and said Westrom Development Company is remediating the property under Pennsylvania Department of Environmental Protection Act 2, and that the borough of Emmaus has already approved a 10-year abatement. Michael Mayer, the Westrom representative, had presented earlier in the process; administration said the district’s draft schedule was modeled on the borough’s resolution but includes different reassessment and interim-tax language. - Timing and intergovernmental coordination: Several board members, including Doctor Levinson and Mr. Jankowski, urged that the board either refine the draft abatement schedule or delay action until the full nine-member board could participate. Doctor Levinson suggested options such as a shorter abatement schedule to recoup revenue sooner; Mr. Fisher, who helped develop the district draft, said administration used the borough resolution as a framework and clarified differences such as reassessment and interim-tax language.

After discussion, the board voted to table the district LERTA resolution. Ms. Klotz moved to table; the motion carried on a roll-call vote of 7 ayes, 0 nays. Board members who voted aye included Mr. Kelly, Ms. Klotz, Mr. Smith, Ms. Bowman, Mr. Fileggi, Mr. Jankowski and Doctor Levinson.

What happens next: tabling preserves time for additional edits and discussion with municipal partners and allows the full board to consider the draft at a later meeting. Administration and counsel said they could revise the draft’s abatement schedule, reassessment period and interim-tax language if the board directs staff to do so.