Developer seeks tax break extension for Wilkes-Barre Township project

Bluecup Ventures LLC is asking Luzerne County Council to extend the construction deadline in its real estate tax break agreement for a Wilkes-Barre Township warehousing and distribution center.

The tax break resolution that County Council unanimously approved in March 2022 said Bluecup must commence construction at the 70-acre site within three years, and that period has lapsed.

Representing Bluecup, Attorney Mara Terrana, of Hoegen & Associates in Wilkes-Barre, told County Council this week the developer was powerless to proceed with construction due to several court appeals related to the project zoning that “took up the entire three-year span.”

Bluecup is seeking a construction extension to the end of 2027, Terrana said during the County Council work session.

Township Planning Commission Solicitor Todd Johns said in October that the project has the necessary zoning and conditional use approval to proceed. A Township Council majority decided in November 2023 it would not appeal a County Court of Common Pleas ruling regarding the project’s conditional use permit. The court concluded the township’s original denial of the permit was an “error of law.”

Some residents have expressed concerns about increased traffic and other issues related to the project on former coal mine-scarred land.

While the project parcel is along Interstate 81, access is on Johnson Street off Route 309. The Johnson Street/309 intersection is near the new Wawa and now has a traffic light.

All three taxing bodies — the township, county, and Wilkes-Barre Area School District — had approved a blighted-property tax break for the Bluecup project that will provide 65% tax forgiveness on new construction for a decade.

The 10-year exemption period begins when the completed construction is assessed by the county.

Bluecup has estimated taxing bodies will collectively receive $840,000 annually during the tax break period. After that, it projected the taxing bodies will receive a combined $2 million in tax revenue annually.

Terrana told County Council the Wilkes-Barre Area School Board approved an extension, and an extension request is pending before the Township Council. The next Township Council meeting is Jan. 5, the municipality said.

County Councilman Jimmy Sabatino told Terrana he wants to wait until 2026 because the county typically makes decisions related to tax breaks last, after approvals have been granted by the applicable school board and municipality.

In reply, Terrana said the break itself already was approved by all three taxing bodies and that this is solely an extension. She noted the agreement allowed extensions due to circumstances out of the developer’s control.

Based on conversations with township legal counsel, Terrana said she does not expect any municipality opposition to the extension request.

“My clients are just as eager to have this project built — as I’m sure the county is to receive the tax revenue — so I’d respectfully request this be considered,” Terrana said.

County Councilman Kevin Lescavage, who is among four council members leaving office Jan. 5, said he supports the extension.

“This is probably one of the better ones we’ve had, so we’d be foolish not to move forward with this,” he said of the tax break structure requiring Bluecup to pay 35% throughout.

Council Chairman John Lombardo concurred, saying he looks forward to the new development.

Lombardo said Thursday the matter will be on the voting agenda in Tuesday’s meeting, which is the last scheduled County Council meeting of the year. Lombardo said he does not believe an extension vote on a past-approved break should be deferred because the project delay is not the developer’s fault.

Councilman Harry Haas asked Terrana if Bluecup would consider restructuring the tax break “in order to have County Council support on this.”

Terrana said she has not discussed that with the developer.