Local Government TV

Friday, April 21, 2023

NorCo Council Overrides Veto of Pektor Tax Break in Upper Mount Bethel

By 6-3, Northampton County Council voted last night to override Executive Lamont McClure's veto of a special kind of tax break, known as a LERTA, for developer Lou Pektor in Upper Mount Bethel Tp (UMBT). Proponents of this tax break predict it will lead to manufacturing jobs. Opponents argue it would actually lead to warehouses. McClure vetoed this special tax break because it actually does incentivize warehouses. Voting to override the veto were Republicans John Goffredo, Tom Giovanni and John Brown as well as Democrats  Kerry Myers, Lori Vargo-Heffner and Ron Heckman.  These are the same Council members who voted the grant this tax break two weeks ago. This tax break was then opposed by Republican John Cusick and Democrats Tara Zrinski and Kevin Lott. Last night, this triumvirate supported McClure's veto. 

For those of who who just aren't up tp date on all the tax gimmicks out there, LERTA is an acronym for Local Economic Revitalization Tax Assistance.

Property owners inside a LERTA zone may apply for a tax break for improvements that increase assessment, upon which all real estate taxes are based. They will continue paying full taxes on the current assessment, but the increase in assessment resulting from improvements like a new manufacturing facility or warehouse can be phased in gradually over a period of ten years.

Two weeks ago, McClure suggested that Council table the matter to give him and Pektor time to develop a LERTA that would be limited to manufacturing.  For his part, Pektor stood up and agreed with McClure's suggestion, which would have satisfied everyone. 

Amazingly, they were both ignored. County Council voted instead to incentive whatever is built at this site, including warehouses. Plainfield Tp Supervisor Don Moore suggested that Council had snatched "defeat from the jaws of victory." He argued that the building sizes proposed would be warehouses. 

This was disputed by Pektor himself. "A lot of people have been taking liberties and making misstatements," he said. He specifically accused Council member Tara Zrinski of "taking liberties to make some serious misstatements, both on TV and in this room, about our projects and activity." Council President Kerry Myers stopped Pektor from getting personal, but he went on to specifically denying any intention of building 185' tall buildings or hi-cube warehouses. He denied traffic would flow through Wind Gap, buit would instead be going to Route 80. He said the site already has enough water for warehouses, but he's continuing to source water precisely because he wants manufacturing.

McClure asked Council to sustain the veto because he and Pektor have started a dialogue "to codify what is manufacturing. ... We need more time. These are complicated issues. What is manufacturing? How is manufacturing defined? What is a warehouse? ... These are not simple questions to answer in just a few short hours." He said that limiting the LERTA to manufacturing would be "a huge step forward in our fight against warehouse proliferation. Give us more time to do that."

Nope.

Without discussion, the veto was overridden. The LERTA remains in place. 

9 comments:

  1. Nobody, and I mean nobody, comes into our house and pushes us around ...

    Nobody should vote those 6 back into office. Well, at least 5, back into office. Thanks be the county doesn't have to worry about Meyers this election.

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  2. I don't fault Brown, Giovanni or Goffredo for voting as they did. They live or have family in the slate belt. They want jobs in an area that really is economically depressed. But most of the residents in UMBT like it that way. They are either retired or commute to high paying jobs in Jersey. It is easily the most beautiful township in the county precisely because it has a dearth of factories and commercial businesses.

    I do fault Myers, Vargo-Heffner and Heckman. They did snatch defeat from the jaws of victory. They had a win-win solution in the discussions between McClure and Pektor that would have guaranteed manufacturing. They instead voted to incentivize warehouses in an area, aside from the power plant, that is certainly not blighted. I doubt any of this troika survives a primary.

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  3. PeKtor - one of the most trusted developers in the state - snicker, snicker.

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  4. I can't wait for the borough of Wilson to come back to the county and get the lerta for the Dixie Cup. It should fly thru for whatever developer wants to put there. Be prepared Council.

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  5. Myers, Vargo-Heffner, and Heckman are obstinate members who just want to oppose McClure. They had absolutely no reason to ignore McClure's request for more time. Shameful! Vote them out!

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  6. I love when a Democratic Party majority votes to give corporate welfare to a rich guy. Sing it with me: "Happy Days Are Here Again!"

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  7. The industrial development will not ruin the rural character of UMBT. The township is large and rural with the exception of the 611 corridor and will remain so. The industrial zone is in the right place with easy access across the river to markets East and West. All the back roads remain scenic.

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  8. We want to thank council members who voted with the real Slate Belt representatives to move this much needed project along. Apparently, you are unaware that Mr. Pektor made numerous attempts to contact Mr. McClure who then waited until the last minute to respond. Also, not sure if your friends in the Administration shared Mr. Paktor's letter with you, in which he rejected Mr. McClures definitions and Mr. McClure called it a starring point. His intonation to delay and delay. Thankfully, country council saw through this vote pandering attempt by the executive. It would appear so have the Planning Commission. You can only play people so long before most of them catch on.

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    Replies
    1. This sounds like one of the council members. You are not fooling anyone. Hopefully none of them except the 3 get voted back in.

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