Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Solicitor briefs Parkland board on LERTA tied to Eli Lilly campus; board asks for fiscal options
Summary
Solicitor Jessica Moyer and counsel Matt Anderson explained how a LERTA tax‑abatement works and said Upper Macungie Township established a LERTA for the Eli Lilly project; board members requested revenue‑impact estimates and alternative schedules (3, 5, 10 years) before deciding whether Parkland should join.
An informational presentation on March 17 explained the Local Economic Revitalization Tax Abatement (LERTA) process after Upper Macungie Township established a LERTA district for the proposed Eli Lilly manufacturing campus on March 5.
Solicitor Jessica Moyer (speaker 15) introduced her colleague Matt Anderson (speaker 22), who explained LERTA mechanics: local taxing authorities may elect to abate some or all of the incremental real‑estate tax on increased assessed value for up to 10 years, typically with a declining percentage schedule (for example, 100% exemption the first year, decreasing by 10% annually over 10 years). Anderson said the abatement typically becomes effective in the tax year when the project’s final phase is complete and a certificate of occupancy is issued.
Board members probed how the LERTA aligns with the statute’s intent — which focuses on deteriorated or blighted areas — and whether the Eli Lilly site met that definition. One board member observed that the township has the legal authority to declare a LERTA but noted that such determinations can be challenged in court. Members also asked how much revenue the district might forgo under various abatement schedules and whether Eli Lilly or other partners had offered compensating community benefits; administration said district staff would attempt to produce high/low tax‑revenue scenarios for 3‑, 5‑ and 10‑year options and explore whether direct commitments from the developer could be documented.
Solicitor Moyer reminded the board that joining a LERTA requires a public meeting and a resolution; it is optional for each local taxing authority (school district, county, municipality). Several board members requested direct conversations with the developer as part of a more detailed workshop and asked staff to research local examples and precedents used in nearby districts. The board did not take a vote; the item was informational and slated for further discussion at April committee meetings.
Why it matters: Joining a LERTA can reduce near‑term tax revenue to the district while aiming to encourage long‑term development; board members asked for clearer fiscal modeling before making any decision.
What’s next: Administration will seek to provide estimated tax‑revenue impacts under alternative schedules and return the item to committee for further deliberation.
