Tired of ads? Subscribers enjoy a distraction-free reading experience.
Click here to subscribe today or Login.

Missouri-based NorthPoint Development is asking Luzerne County Council to approve a tax break for its latest $125.2 million development known as the “Bliss Earth Conservancy site” in Newport and Hanover townships.

The request is up for discussion at Tuesday’s council work session. Council approval at a future meeting would be required for a break to take effect.

NorthPoint has obtained tax breaks for other projects on mine-scarred land in recent years. It brought Chewy.com, Adidas and Patagonia Inc. to its first 172-acre project in Hanover Township known as the Hanover Ridge Trade Center. Its next project, known as TradePort 164, has attracted True Value Company and Spreetail.com to date.

The request now before council is for a 122 acre tract off Middle Road, with 83 acres in Newport and 39 in Hanover.

It would be under the blight-reduction Local Economic Revitalization Tax Assistance (LERTA) program, which means taxes must be paid on the land portion throughout the decade the break on new structures is in effect.

NorthPoint is seeking full county real estate tax forgiveness on new construction in the first seven years, 90% in the eighth year, 80% in the ninth year and 70% in the tenth and final year, said the proposal before council.

The tax break would take effect when the county assessor’s office values the new construction and cannot continue past 2035, the resolution says. Tax forgiveness does not terminate if the property is sold.

Developers and officials have argued such breaks are necessary to attract companies amid competition from other regions offering incentives.

The nonprofit Earth Conservancy still owns the property and has partially reclaimed it in phases over several years. However, earth movement and compacting, drainage systems and other infrastructure would be required to build structures there.

The site was named after the Bliss Breaker that once operated in that area, officials have said.

According to documents presented by NorthPoint:

The Bliss site will contain two buildings measuring 1.3 million square feet and 539,000 square feet.

During the first seven years of the break, taxing bodies will collectively receive $226,340 on the land, with $57,342 of that going to the county.

As tax payments gradually start phasing in, the total paid is projected to rise from $458,616 in the eighth year to $937,174 in the tenth year.

After that, the property is estimated to generate $2.6 million annually, including $663,632 paid to the county.

In its submission to council, NorthPoint provided an update on the number of jobs, buildings and total investment at its two other project sites.

The three-building project at Hanover Ridge cost $115 million and created 1,913 jobs.

At TradePort, the investment will be $238.65 million for seven buildings employing 616.

Other breaks

Council approved two other LERTA breaks this year for projects on mine-scarred sites in the Hazleton area.

The most recent was on April 27 for Fairfield, Connecticut-based Bluecup Ventures’ $120 million warehouse project on 360 acres that will eliminate a towering culm bank motorists face as they cross the county line on Route 309 in Hazle Township.

Bluecup sought the lowest break to date: 65% real estate tax reduction on the three new buildings for 10 years.

In total, the three taxing bodies currently collectively receive $15,439 in real estate tax revenue annually from the property. Bluecup’s payments are projected to jump to $1.74 million each year during the break and to $3.6 million after the break is over, the company said.

The first break, approved by council in January, was for a $500 million project on a nearby tract along Routes 309 and 924 in part of Hazle Township but mostly within Hazleton. This 400-acre site is badly scarred from past coal mining and two dumps.

Hazleton Creek Commerce Center Holdings LLC plans to build five warehousing and manufacturing structures totaling 5.5 million square feet.

Bethlehem-based project developer Robert Kiel convinced a council majority to grant full forgiveness on the new buildings for a decade because the tract had been surface and deep mined and will require the company to complete state-mandated environmental reclamation work and capping of old landfills before construction can begin.

Taxing bodies will collectively receive $15,700 on the land annually throughout the break, which includes approximately $4,000 in county taxes. After the LERTA expires, total annual real estate tax payments should be in the $5 million to $6 million range annually, the developer’s attorney said.

Tuesday’s virtual work session follows a 6 p.m. voting meeting. The link to attend is posted under council’s public meetings online section at luzernecounty.org.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.