Several Luzerne County Council members expressed resistance Tuesday over a request to alter a tax break that had been granted in 2021 for a $500 million project in the Hazleton area.
In another matter, a request for coyote hunting permission near the Eagle Rock Resort was not debated at Tuesday’s work session because Councilman Jimmy Sabatino said he discovered the county does not own the land involved in that request.
Regarding the tax break, a council majority had approved it for Hazleton Creek Commerce Center Holdings’ development on a 400-acre site in Hazleton and Hazle Township badly scarred from past coal mining and two dumps.
Bethlehem-based Hazleton Creek plans to build five warehousing and manufacturing structures totaling 5.5 million square feet.
Hazleton Creek’s agreement with the county contained a clause saying the break would be forfeited if the company becomes delinquent on non-exempt real estate taxes at the site.
Company representative Bob Kiel has said he has absolutely no objection to this condition. But because the tract will be subdivided into six sections, he is asking council to change the wording to ensure the occupants of all parcels would not be penalized and lose the break if one becomes delinquent.
The proposed revision would apply the stipulation to each lot and says nonpayment by one lot owner would “not in any way affect” the exemption of other lots.
The break is under the Local Economic Revitalization Tax Assistance (LERTA) program for blighted properties, which means the property owner pays real estate taxes on the land throughout the break and receives a discount on taxes for the new development.
At Tuesday’s work session, Councilman Kevin Lescavage said any developer seeking a change from the original package should be required to present a fresh request to the legislative body. Lescavage said the council currently seated would not approve 100% tax forgiveness for a decade.
Kiel had convinced a council majority to grant full forgiveness on the new buildings for a decade because the tract had been surface and deep mined, requiring the company to complete state-mandated environmental reclamation work and cap old landfills before construction could begin.
Kiel said last week that much of that work has been completed — including landfill capping and earth-moving — following an extensive permitting and regulatory process. Hazleton Creek has invested millions of dollars in the project to date, he had said.
Sabatino said he agrees with Lescavage that Hazleton Creek should be required to reapply.
Councilman Harry Haas said he voted against the original tax break in 2021 and believes Hazleton Creek should renegotiate the break, noting the county is now “in a different place in this economy.”
Haas suggested the attorney representing Hazleton Creek Tuesday should encourage the property owner to “develop a better scale” for the tax break package.
Council Vice Chairman Brian Thornton told the attorney Hazleton Creek could proceed as is with the subdivision request and seek a vote, but Thornton said that may not be advisable based on “taking the temperature” of council’s reaction.
Sabatino said council’s infrastructure committee, which he chairs, could negotiate a new tax abatement structure with Hazleton Creek for council’s consideration.
Coyote request
Ronald Yaron sought permission to hunt coyote on property near Eagle Rock to eliminate a nuisance to the housing development, the work session agenda said.
His communication said he would follow all safety requirements and Pennsylvania Game Commission regulations. His submission included a photograph of a deer that had been attacked and killed by a coyote at Eagle Rock.
Sabatino told his council colleagues he spoke with a state Game Commission representative who discouraged the granting of Yaron’s request, maintaining the coyote population is stable or on the decline in the state. After this conversation, Sabatino said he learned the Hazle Township land at issue was owned by the Hazleton City Authority and Missouri-based NorthPoint Development, which recently obtained a tax break to construct a 15-building data center there.