Wilkes-Barre, Luzerne County, PA -
Developer Robert Mericle told Luzerne County Council on Tuesday that a massive commercial development his company plans to build in the Hazleton area deserves a tax break.
Mericle Commercial Real Estate Services plans to build Crossroads East Business Park on a 1,740-acre parcel near Interstate 81. It would include 36 buildings totaling about 14.64 million square feet, according to Mericle’s presentation to council.
Mericle is seeking a 10-year tax abatement on new construction at the site through the state Local Economic Revitalization Tax Assistance program, known as LERTA, designed to encourage the revitalization of blighted properties.
The tax break would only apply to new construction. The property owner must pay the full tax rate on the land and pre-existing structures.
Hazle Twp. supervisors and the Hazleton Area School Board have approved the tax abatement. Council might vote whether to approve it on Oct. 24.
During his presentation, Mericle pointed to his company’s track record of creating jobs through commercial development of mine-scarred land, as well as its charitable contributions and community involvement.
The Hazleton area will be the top location for commercial development along the I-81 corridor between Maryland and New York state within the next 10 to 15 years, Mericle said.
“The benefit of your partnership with us allows us to accelerate that development,” Mericle told council.
Change in terms
Mericle is requesting full abatement of property taxes on new construction for 10 years. That would mark a change from recent abatement plans council approved through the LERTA program, which contained a graduated schedule starting with 90% abatement, then reduced abatements from year eight through year 10.
On Wednesday, Councilman Matt Mitchell said he thinks a full abatement for 10 years is justified.
“Based on the positive economic impact Mericle’s business has on county residents and the amount of community involvement and charitable contributions they’ve given over many years, I think council can reciprocate by encouraging more regional investment and development by means of a tax incentive,” Mitchell wrote in a text message.
Council Vice Chairman John Lombardo agreed.
“Mericle is a fantastic community partner,” Lombardo wrote in a text message. “They give back so much more to this county than they receive, and I am happy to support what I’m sure will be another successful development project.”
