Tax break for Emmaus apartment project gets Lehigh commissioners' approval

ALLENTOWN, Pa. — Lehigh County Commissioners on Wednesday narrowly approved a property tax break for a brownfield in Emmaus set to become an apartment complex.

Board members voted 5-4 to grant a Local Economic Revitalization Tax Assistance incentive for 8.5 acres at 300 Furnace St. that once held a foundry.

Fort Washington, Montgomery County-based builder Westrum Development plans to put four apartment buildings containing 144 units in all there.

The LERTA incentive will reduce the landowner ’s property tax bill for five years, starting when construction is finished.

For the first year, Westrum will not have to pay any of the county’s levy on the new apartments’ value. The following year, they will owe 20% of its typical property tax bill.

The developers will need to pay an additional 20% of their assessed taxes, owing 40% in year two, 60% in year three and so on. After five years, they will be charged all of their assessed property taxes.

Throughout the five-year program, the landowners will pay taxes on the full value of the unimproved land. While the county’s revenue won’t drop because of the LERTA, its takings would be higher without it.

Thanks to an amendment introduced last month, Westrum Development also will need to give $25,000 to Second Harvest Food Bank’s Seed Farm program.

Some dissent

Emmaus and East Penn School District already approved LERTA incentives partially abating property taxes for the 300 Furnace St. site.

Emmaus adopted the same program as Lehigh County, which phases in property taxes over five years. East Penn’s slightly leaner version, however, gives a partial discount for three years.

Ahead of Wednesday night’s vote, commissioners disagreed whether the county should grant the tax break.

“The onus is not on us to have to make that sacrifice over the next five years to incentivize that development,” Commissioner Jon Irons said.

“I've heard no public support for this project.”

A one-member majority, though, decided that it is in Lehigh County’s interest to back the project.

“Growing up, I saw the Lehigh Valley dairy building, abandoned, rotting,” Commissioner Antonio Pineda said of the former historic Whitehall Township structure.

“There should be no Lehigh Valley dairy buildings in Lehigh County — properties that stay there for 30-plus years that are untouched because of issues with the land and other problems.”

In comments to East Penn School Board this year, representatives for Westrum Development said the Emmaus project would move ahead with or without tax breaks.