WILSON, Pa. — Developers behind the planned Easton Commerce Park warehouse project pitched their need for tax abatement for the project to Wilson Area School Board on Monday.
Scannell Property’s David Salinas highlighted for the board how fundamental the Local Economic Revitalization Tax Assistance would be for such a massive project.
The prospective million-square-foot warehouse likely would be assessed at $180 million, including $130 million for the warehouse construction and associated costs, and the land value.Scannell Property's David Salinas
The board did not vote on the LERTA Monday, though Salinas asked that it be decided at its May 19 meeting to coincide with another appearance he has scheduled in the area.
According to Salinas, the prospective 1 million-square-foot warehouse likely would be assessed at $180 million, including $130 million for the warehouse construction and associated costs, and the land value.
Salinas said the land now generates about $150,000 in taxes sitting fallow — but it could bring in even more for the borough and the district, with the help of LERTA.
LERTA is a tax abatement program created by the commonwealth in 1977.
The program incentivizes redevelopment of aging or otherwise deteriorating properties by offering tax abatement, then a graduated increase in taxes payments on improvements over a decade.
LERTA is 'engine that fires it up'
Easton Commerce Park would sit on the former grounds of the Pfizer Pigments plant, which requires cleanup efforts throughout the land.
“LERTA is the economic catalyst to have sites like this that are super challenged with environmental constraints, brownfields, etc., that is, the economic engine that fires it up to have this development be completed."Scannell Property's David Salinas
“LERTA is the economic catalyst to have sites like this that are super challenged with environmental constraints, brownfields, et cetera," Salinas said.
"That is the economic engine that fires it up to have this development be completed."
In year one, the developer pays no tax on any improvements. That abatement drops to 90% in year two, continuing until the exemption terminates after year 10.
For the school district, that means its second year take on taxes for the property would amount to $110,140.26, increasing each year until it reaches a full tax rate of $1,101,402.55 per year after the final year of the abatement.
During those 10 years, the district would pull $4,956,311,50 from the property.
Salinas extended an invitation to discuss the matter further if the board deemed it necessary.
According to Salinas, once groundbreaking begins, “soup to nuts,” the project would take 18 to 22 months, with traffic improvements set to begin around the 18-month mark.
Easton Planning Commission has set a hearing for the warehouse project for its Wednesday, May 7, meeting, following several postponements over the past few months.
Traffic troubles
The project's traffic impact was a point of concern for the board, as it has been with other municipal bodies.
Board member Janis Krieger called attention to Easton Area School District’s recent resolution in opposition of the project because of school traffic safety concerns, as well as environmental issues.
“And my question is, Easton already said no, their school district… If we say yes, what does that mean?” Krieger said.
"So it's tough, and traffic's always going to be a pinch point. But we have agreed to do all of the offsite improvements PennDOT’s requested for us, and it's about a $1.4 million price tag."Scannell Property’s David Salinas
Salinas responded by saying, “So your school district is the deciding factor, you’re the taxing authority from the school perspective.”
Peak traffic for the facility would be about 1,000 car trips and 200 truck trips per day into and out of the property, Salinas said.
Board member Jeffrey Breidinger said he also was interested in how the entrance and exit to the property will impact traffic, particularly if trucks or other vehicles travel along Hackett Avenue.
“Trucks don't need to be going down Hackett anyway, right?" Salinas said. "They need to come back here. They need to get on 13th, or do they need to go and get on 25th?”
Asked about road improvements for the site, Salinas said the state Transportation Department would be responsible for some spots, including state roads, thought the developer has already pledged to invest in such endeavors, as well.
"So it's tough, and traffic's always going to be a pinch point," Salinas said. "But we have agreed to do all of the offsite improvements PennDOT’s requested for us, and it's about a $1.4 million price tag.
“Again, it goes back into the total cost of the project. You take the remediation, the site work alone, inclusive of the remediation, is almost $38 million, right?
"The land is over $60 million, the building costs another $35 million. These costs just add up and keep going higher.”
