- Easton City Council added nine properties to the city's LERTA list Wednesday
- Base taxes would remain the same, letting owners invest in rehabilitation and redevelopment
- One of the larger LERTA projects includes 1-6 Centre Square, which is set to be redeveloped into a $25 million, seven-story hotel
EASTON, Pa. — Easton City Council on Wednesday approved adding nine parcels to the city's Local Economic Revitalization Tax Assistance program, including 1-6 Centre Square, which is set to be redeveloped into a $25 million, seven-story hotel.
The move could spur substantial improvements across the city.
City Community and Economic Development Director John Kingsley presented the public hearing on the properties, highlighting the program’s 10-year sliding scale tax abatement on property tax increases resulting from substantial rehabilitation and redevelopment.
According to the State College Bureau, “the purpose of the legislation is to incentivize redevelopment of aging or deteriorating properties."
Easton’s LERTA District was established in 2012 via a city council resolution, with a prior LERTA Program having been established in the 1970s.
Since then, Easton Area School District and the Northampton County Council have passed similar ordinances allowing for the re-establishment of the LERTA Program in the city.
In 2018, the program was reauthorized to allow it to continue through 2027.
“On the improvements, they still pay the base tax. So as you can see in this graph, by year two, we're doubling our money. And by year ten, we've got tenfold – $140,000 versus $14,000."Easton Mayor Sal Panto Jr.
In addition to 1-6 Centre Square, owned by Two Square Properties LLC, the nine parcels approved Wednesday are 8 Centre Square, owned by Feiner Investments LLC; and 508 W. Canal Street, owned by Shiloh Baptist Church of Easton PA.
Also, 130 and 132 Philips St., owned by Alfred Dean and Betty J. Jones; 134 Philips St. and Charles Street, owned by William and Elizabeth Houston; and 653 and 671 Bushkill St., owned by Black Canyon LLC.
Those properties will join 82 previously approved LERTA properties.
Spurring redevelopment
According to Kingsley’s report, the inclusion of 1-6 Centre Square will help support redevelopment leading to the Great Square Hotel, in addition to 8 Centre Square and plans for restaurant and residential end uses.
The 508 W. Canal St. approval will support a new affordable housing community developed by PIHRL, the developer of the Mill at Easton, in partnership with Greater Shiloh Church.
The four properties on Philips and Charles Street will support in-fill affordable housing to be developed by Greater Shiloh Church.
The remaining Bushkill Street properties will support redevelopment for a maker/incubator space.
LERTA “is a tool we could use in our toolbox that allows us to give property owners an opportunity to improve their property while saving money, ultimately contributing to the city’s overall economic development."Easton Mayor Sal Panto Jr.
“The total current city tax that is generated from these parcels is $14,244," Kingsley said. "Post-LERTA, based on projections that we put together on comparables that have recently been reassessed, we determined that post-LERTA, these would generate about $140,000 in taxes.
"And when I say ‘post-LERTA,’ that is post the 10-year period that the tax abatement provided,” Kingsley said.
Panto added that LERTA “is a tool we could use in our toolbox that allows us to give property owners an opportunity to improve their property while saving money, ultimately contributing to the city’s overall economic development.
“On the improvements, they still pay the base tax," Easton Mayor Sal Panto said. "So as you can see in this graph, by year two, we're doubling our money. And by year ten, we've got tenfold — $140,000 versus $14,000."
Project specifics
Estimates show the incremental taxes will reach $140,093.77 by year 10, while base taxes remain stable.
The Centre Square properties have been noted as “perhaps the highest profile property in the Southeast Quadrant of Centre Square,” which has been proposed to be redeveloped into a seven-story, 41 key hotel and conference facility featuring two restaurants.
The project is expected to cost $25 million, with construction finishing up around December 2025. It's expected to create 30 full-time equivalent jobs.
The 8 Centre Square property, which is set to be redeveloped into a restaurant, will cost about $3.4 million. In addition to two commercial spaces, the space may feature seven apartments.
According to Kingsley’s report, the project could be completed in 14 months, though because of increases in construction and borrowing costs, LERTA designation will be essential for the project to proceed.
The 508 West Canal St. property is set to bring 48 units of affordable housing at a cost of $18 million.
It would include 11 one-bedroom units, 23 two-bedroom units, and 11 three-bedroom units, all with a private balcony or patio, a pantry, EnergyStar appliances and in-unit washers and dryers.
Construction is set to begin in 2025 with an estimated timeline of 18 months, though again, LERTA designation will be integral to reducing operating costs.
The next steps
The Philips Street and Charles/Philips Street properties are set to become eight new owner-occupied affordable housing units, with a total project cost of about $2.5 million. Each two-story home would offer three bedrooms and 1.5 or two bathrooms.
With construction expected to begin in 2024, the project will take eight to 10 months.
The Bushkill Street properties will be redeveloped to provide office and manufacturing and industrial spaces for microenterprises.
The property owners have designated the space as the “Easton Innovates Center,” which will provide small manufacturers access to top-of-the-line equipment and engineering technology.
The $1.5 million project, which will add more than 22,000 square feet of industrial and supportive space to the city, will begin construction in summer or fall 2024, with estimated completion dates in spring or summer 2025.
Officials next will have to meet with the superintendent and administrative team at Easton Area School District for a review proposal in early September, followed by a presentation of proposed additions to the board by September or October.
Additional engagements also will include a review proposal with the Northampton County executive team in September, a presentation on proposed changes to the Economic Development Subcommittee of County Council in October or November, and a meeting with County Council for the consideration of ordinance addressing revisions in November.
