Luzerne County Council discusses Wilkes-Barre Twp. tax break extension request

A request to extend the real estate tax break construction deadline for a Wilkes-Barre Township warehouse is once again before Luzerne County Council.

Bluecup Ventures LLC said it was powerless to meet the three-year construction commencement deadline in its 2022 tax break agreement with the county due to zoning-related court appeals. It is seeking an extension to the end of 2027 for the Johnson Street project.

A County Council majority removed the matter from its December agenda because Township Council had not yet voted on the same request for the municipal portion of taxes. The remaining taxing body — the Wilkes-Barre Area School Board — had already unanimously approved the extension, and Township Council voted 3-2 to grant the extension in February.

The breaks are through the Local Economic Revitalization Tax Assistance (LERTA) program for blighted properties, which only applies to the new construction portion of a project. All three taxing bodies had approved 65% tax forgiveness on the warehouse for a decade.

Taxing bodies are currently receiving a combined $600 in taxes on the coal mine-scarred property, Bluecup Attorney Francis Hoegen, of Hoegen & Associates in Wilkes-Barre, told County Council during this week’s work session.

Total property tax receipts are projected to exceed $1 million annually during the decade-long break, with the 35% paid by Bluecup, Hoegen’s chart said.

“We ask that you consider voting — and, like your predecessors, unanimously approving — this $100 million project in Wilkes-Barre Township, which is going to take mine-scarred land and turn it into a productive asset,” Hoegen told council.

Councilman Steve Coslett expressed concerns that the project will create a “traffic nightmare” for neighboring residents and businesses, as well as motorists passing through. While the project parcel is along Interstate 81, access is on Johnson Street off Route 309 — an intersection near the new Wawa that now has a traffic light.

Hoegen said the traffic plan is governed and decided by the Pennsylvania Department of Transportation and would be addressed through the township’s land development approval process.

Township Solicitor John Rodgers told County Council that PennDOT is requiring a new traffic study of the Johnson Street/309 intersection, which may result in traffic light recalibration and other changes.

Councilman Harry Haas said this region has become a “hot place to invest,” and he still believes tax breaks are an “archaic means of development.” Increased development is making the area look “more and more like a suburb of a more major metropolitan area” with growing traffic and decreased quality of life, he asserted, saying he doesn’t want situations “where it takes you two hours to get around the corner.”

Haas asked if Bluecup would be willing to reverse the formula to receive 35% tax forgiveness and pay 65% in taxes during the break.

Hoegen said Haas’ proposal “completely undermines their entire plan” and would delay and possibly “destroy” the project “because so much time and money has been spent to get to this point.”

Councilman John Lombardo said taxing bodies are currently collecting only $600 in taxes on the property. He asked how long the property had been vacant and whether anyone else was interested in developing the site. Hoegen said it was dormant for 30 years, and no other developers had come forward during that period.

Councilwoman Denise Williams said Bluecup was not at fault for litigation that held up the project and noted the developer did not seek 100% tax forgiveness for a decade — a request that had been granted for some other projects.

Williams said she supports the extension because the project will improve a site near the interstate that has been deteriorated for decades, create jobs, and improve the economy.

Councilwoman Joanna Bryn Smith asked if Bluecup would consider a “60%-40% split” instead of 65%-35%.

Hoegen said “it’s not like bartering at a retail outlet” and that negotiations with all taxing bodies occurred in 2022.

“But you need this,” Bryn Smith replied.

“I think we all need it,” Hoegen said. “Everybody in the county needs projects like this to take mine-scarred land. Nobody will ever touch this again. It will sit idle again for 30 years.”

Renegotiating the county percentages would prompt the other taxing bodies to seek changes, resulting in further delays that stop the project, he said.

“With all due respect, we’re not here to negotiate that. We’re here to present you with an opportunity — a terrific opportunity — and it’s your opportunity to take advantage of that,” Hoegen said.

Councilman Chris Belles said he’s in favor of the project but does not believe it was inappropriate for his colleagues to seek different percentages, since Bluecup is also seeking to renegotiate an extension.

Township Councilwoman Katie Krutski-Arnone had voted against the extension in her municipality and urged County Council to do the same, citing the “big unknown” impact on public safety.

Township resident Cindy Dorzinsky asked County Council to perform more due diligence, saying it is “going to be a scary situation” if trucks and other vehicles associated with the proposed warehouse are added to the congested location.

Council is expected to vote on the extension request at its next meeting on April 14.