Business & Tech
Costco Project Tax Breaks Go Back to County Again
The Lehigh County Commissioners could finally grant their approval to the controversial Tax Increment Financing plan being developed to help fund the much-anticipated Costco shopping mall in Lower Macungie Township.
The developers of the proposed Hamilton Crossings project in Lower Macungie Township are hoping that the third time will be the charm when the decision on the Tax Increment Financing plan created to help fund their $140 million endeavor again comes before the Lehigh County Commissioners on Wednesday night.
The county commissioners, whose blessing is needed to move the much-talked about TIF plan forward, have tabled their vote on the controversial plan twice before and the clock is ticking if the developer is to successfully bring the Lehigh Valley its first Costco in 2014.
In a nutshell, here’s how the TIF would work: The government bodies that will ultimately benefit from the tax revenue generated by Hamilton Crossings –East Penn School District and Lehigh County – agree to forgo a portion of those tax dollars for a set time period to help the developer pay for whatever bonds or loans are needed to bankroll the project to get it off the ground.
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The failure of the county commissioners to act on the TIF decision at its last meeting all-but-stalled the project, as the Lower Macungie Township Board of Commissioners – the third and final government body that needs to sign off on the TIF before it can become a reality -- can not approve the TIF until the county commissioners approve it.
Instead, the township commissioners voted to send the county commissioners a letter advocating the TIF plan at the last meeting of the Lower Macungie Board of Commissioners.
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The East Penn Board of School Directors approved the TIF last month. East Penn Superintendent of Schools Thomas L. Seidenberger garnered his board's support to send a similar letter at Monday night's school board meeting.
For more information, check out a Patch Q&A with Hamilton Crossings developer Jeremy Fogel, executive vice president of The Goldenberg Group.
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