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Board approves amended LERTA for Furnace Street redevelopment after divided vote
Summary
The East Penn board approved a shortened Local Economic Revitalization Tax Assistance (LERTA) schedule for a Furnace Street redevelopment, passing a three-year abatement (75%/50%/25%) and a seven-year non-reassessment clause by a 5–4 vote after debate.
The East Penn School District Board of Directors voted 5–4 to approve an amended Local Economic Revitalization Tax Assistance (LERTA) schedule for a proposed Furnace Street redevelopment. The board first removed the earlier LERTA resolution from the table, approved a clerical correction to the property PIN unanimously, then adopted an amended repayment schedule that shortens the abatement to three years and adds a seven-year non-reassessment period.
Under the amendment approved by the board, the abatement of the exempt portion of assessed valuation would be 75% in year one following completion, 50% in year two and 25% in year three; the resolution also includes a provision that for seven years after the exemption period the owner may not seek reassessment of the property. Board members debated whether the district should offer any abatement to a private developer, produced arguments both for supporting development and for protecting near-term tax revenues.
Opponents said the district should not extend tax relief to a for-profit developer given current financial pressures on the district and concerns about creating a disproportionate tax burden for borough residents. Board member Dr. Whitney, who opposed the measure, said the district's primary duty is to fund education and that the district should not subsidize a private project when budget needs remain.
Supporters said shorter, targeted abatement would encourage reuse of a deteriorated property and expand the tax base over time. Board member Jankowski, who moved the amendment, and others said the compromise shortens the period of revenue foregone versus an earlier five-year schedule.
Procedural notes: the board initially took the tabled LERTA item off the calendar by unanimous roll call and later accepted a minor PIN-number correction as a friendly amendment. The amended abatement motion was made by Board Member Jankowski and seconded by Board Member Klotz. The vote on the amended motion passed 5'4.
Ending: District officials said the change aims to facilitate redevelopment while reducing the long-term revenue foregone compared with the earlier five-year proposal; opponents said they remain concerned about lost educational revenue and the district's fiscal position.
