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East Penn board debates tax-abatement terms for Furnace Street apartment redevelopment
Summary
School directors discussed a draft Local Economic Revitalization Tax Assistance (LERTA/LERDA) resolution for the Furnace Street apartment redevelopment, raising concerns about a proposed 100% first-year exemption, reassessment timing and who pays interim tax bills; the board asked administration to redraft language and said the item may return for action.
Emmaus-area school directors spent the bulk of their December meeting debating draft tax-abatement language tied to the proposed Furnace Street apartment redevelopment and weighing whether the district should offer deep early-year tax relief to the developer.
The discussion began when administration and counsel presented a preliminary resolution to authorize Local Economic Revitalization Tax Assistance (referred to in board materials as LERTA/LERDA). The administration recommended language that would limit the district’s eventual action to feedback and a future vote, while counsel explained how reassessment and interim tax bills work once construction is complete.
Administrator Mr. Sall said the Lehigh County assessment office will reassess improvements when construction finishes and that an interim tax bill may be issued for the portion of the year that includes the improvement. Counsel added the draft will include clarifying language making the property owner responsible for any interim tax bill issued before the exemption schedule begins.
Board members split on the draft five-year exemption schedule that included a 100% abatement in year one. Ms. Bowman and others urged trimming the first-year break (suggesting 90% or a graduated 50/40/30/20/10 schedule) to avoid “leaving money on the table.” “If they’re doing it anyway, I’m not sure I understand why we are looking to provide them further incentive,” said Mr. Smith, reflecting concerns that the developer had told the board the project would proceed regardless of district action.
Other trustees, including Mr. Jankowski and Dr. Levinson, said a time-limited abatement can support cash flow early in a project and help the development succeed, arguing the eventual fuller tax base and economic activity will benefit the district. Several trustees noted Emmaus borough has already offered abatement, and asked whether the district should align on terms.
Board members also raised community-impact questions: whether apartments would attract families, how many school-age children the project might generate, and whether rent levels would serve lower-income residents. Counsel told the board it cannot impose rent caps as part of the LERTA resolution.
No vote was taken. The board asked counsel to add language clarifying reassessment timing and taxpayer responsibility for interim bills, and to return a revised draft at a future meeting for possible action.
