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Commissioners approve 10-year LERDA tax-exemption for Holly Ridge project after divided debate
Summary
The board approved a 10-year Local Economic Revitalization Tax Assistance (LERDA) exemption for the Holly Ridge redevelopment in Old Forge amid debate about prior TIF designation and the Old Forge School District’s lack of approval; one commissioner voted no citing precedent and outstanding litigation concerns.
The Lackawanna County Board of Commissioners voted on Nov. 19 to grant a 10-year tax-exemption schedule under the Local Economic Revitalization Tax Assistance (LERDA) Act for the Holly Ridge redevelopment (approximately 23–23.5 acres in Old Forge). The ordinance sets a decade-long schedule of exemptions (100% in years 1–2, tapering to 50% in year 10) intended to encourage new construction and investment on a long-idle former mining site.
Attorney Fred Rinaldi and project counsel described Holly Ridge as a multi-phase, multifamily redevelopment expected to require a multimillion-dollar investment (counsel estimated it could reach up to $100 million). Supporters said the project would bring new residents and investment to the borough and the county.
A commissioner announced a firm 'no' vote, citing long-standing county precedent that both the local municipality and the local school district must approve LERDA before county action. That commissioner referenced a 06/25/2024 letter from then-solicitor Don Frederickson that noted potential impediments: an existing county tax increment financing (TIF) designation, ineligibility for a county LERDA exemption while a TIF remains, a denied request from the Old Forge School District and active litigation tied to the redevelopment authority’s TIF designation. The commissioner said those matters should be resolved before the county acts.
Other commissioners and the county attorney responded that the LERDA would commence in January 2026, run for 10 years and not be retroactive (no refunds), and that Old Forge Borough had approved the request; counsel stated that, under the LERDA statute, municipalities and school districts retain their own approval authority. After discussion and a procedural repeat of the vote, the motion to approve the exemption carried.
Why it matters: LERDA exemptions reduce county property taxes on new construction for a defined period to spur redevelopment; they also reallocate future tax revenue flows and can affect school district and municipal revenues. The hearing included explicit legal concerns about prior TIF designation and pending litigation that one commissioner said warranted pausing action.
What’s next: County staff did not provide documentation of whether previous TIF or litigation issues were fully resolved in the meeting record. The exemption will be effective Jan. 2026 per counsel’s statement; implementation details and any school-district follow-up were not specified at the Nov. 19 meeting.
