An attorney requested an amendment from Lebanon County Commissioners on Wednesday for a tax abatement program on about 5 acres of land to be used for a proposed manufacturing plant in North Lebanon Township.
David Tshudy, partner at Troutman Pepper Hamiliton Sanders LLP, asked commissioners at a workshop session on Sept. 24 to amend an existing Local Economic Revitalization Tax Assistance (LERTA) created in 2007 in the township to include about 5 acres that were omitted when the original tax exemption was granted.
LERTA is a tax abatement program created by Pennsylvania lawmakers in 1977 authorizing local taxing authorities to provide tax exemption. The purpose of the legislation is to incentivize redevelopment of aging or deteriorating properties, according to the commonwealth’s website.
“As we were doing diligence to get ready for the project, we found out that there were about five small parcels of land that were likely intended to be part of the larger LERTA designated area that were not included in all of the ordinance at North Lebanon Township adopted in 2007 along with the resolutions adopted by the county and the school district,” said Tshudy. “And upon realizing this, we got in touch with North Lebanon Township and they agreed to amend their ordinance to now include these very small parcels.”
Tshudy called the omission of the parcels an oversight when the LERTA was created, adding the error came to light during a survey review of the property.
“It was not included but likely intended to be included as it was owned by the EDC (economic development corporation) before 2007,” said Tshudy. “I think it was just an oversight when the original ordinance was adopted.”
When a LERTA is created, it must be accepted by the municipality and school district in which it resides and by county commissioners. Tshudy said while North Lebanon Township supervisors have approved Ordinance 5-2024 in September, it still has to get approval from the school district and county.
“The school district will need to do the same thing that the county commissioners are doing, and we’re scheduled to do that by the end of the month,” said Tshudy. “I’m scheduled to be on the school board meeting (agenda) by the end of the month.”
Commissioners did not take a vote on the request at the workshop since action items are considered at regularly scheduled meetings on the first and third Thursday of each month. The next regularly scheduled commissioners’ meeting is set for Thursday, Oct. 3, and a vote to support or deny the request is expected to be held then.
A resolution for the amendment has been presented to county solicitor Matt Bugli for review. Bugli responded that it looks good when asked by commissioners for his input.
Tshudy said Flexopack S.A., a Greece-based plastics fabrication company, plans to construct a manufacturing operation on about 21 acres in the Lebanon Rails Business Park, of which all but about 5 acres is already included in the LERTA zone.
“It’s intending to build a 193,000-square-foot manufacturing facility that’s going to employ 60 to 70 people at manufacturing, competitive manufacturing wages, and intends to use this as its first U.S. manufacturing facility and from this facility be in the United States market a little bit more than what it is currently,” said Tshudy.
It was noted the foreign company was looking to build a manufacturing operation in one of two states to expand its business reach in North America, and chose Pennsylvania and specifically Lebanon County for a reason.
“They also do their packaging for Bell & Evans,” said Tshudy. “So they were looking at Texas and Pennsylvania, and Scott (Sechler) kind of twisted their arm a little bit and said, ‘Hey, Pennsylvania is your better spot.’”
Later, during public comment, commission chairman Bob Phillips expressed support for the company’s plan to create a manufacturing operation here.
“It sounds like a win-win having, you know, Bell & Evans packaging concern and how cool is that that they got it from Texas to (here),” said Phillips.
Information in company press releases on their website states, “Flexopack Group is a leading producer of flexible packaging used by major meat and cheese industries globally. Proudly celebrating 40 years of operational excellence, with multiple production facilities and subsidiaries around the world.”
Susan Eberly, president of the Lebanon Valley Economic Development Corp., which owns the business park, said the company was interested in certain amenities that are compatible with how they conduct business.
“We’re just thrilled that we’re going to have them there because we built that park to be a rail serve park and they’ll be utilizing the rail,” said Eberly. “So I think that’s wonderful.”
The plant has not yet been built. LebTown enquired if construction is contingent upon the LERTA being granted and was told the agreement is confidential.
Commissioner Jo Ellen Litz raised two concerns about the proposal.
She said she thought it was not a good idea to expand development towards a nearby farm, which is in the farmland preservation program.
Eberly informed Litz that construction would occur on land already owned by LVEDC and that the new facility would not abut the existing preserved farm property.
Litz also said she believes a bridge is to be constructed across the existing rail line from 25th Street for the nearby Lebanon Valley Rail Trail. She asked how the new bridge would impact the plant if the agreement between LVEDC and Flexopack is finalized.
Litz was informed that the proposed bridge was not in proximity to the area where the plant is to be constructed and that the county had explored, but not obtained, a grant to build a pedestrian walkway to connect to the trail.
Phillips added that the defunct bridge project has no bearing on the LERTA request.
As far as timing on plant construction, Tshudy said he believes the company plans to build next year as soon as the land development plan is approved and building permits are issued.
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