Wilkes-Barre, Luzerne County, PA -
John Augustine, President and CEO of Penn’s Northeast, has emerged as a leading advocate for balanced, flexible, and growth-focused economic development policy in Luzerne County. Speaking passionately before Luzerne County Council during a 66-minute presentation, Augustine urged elected officials to reject a proposed set of nonbinding guidelines that would standardize real estate tax breaks by project type.
The proposal, spearheaded by Councilman Jimmy Sabatino and the infrastructure committee, sought to implement predetermined schedules for tax abatements and development fees under the Local Economic Revitalization Tax Assistance (LERTA) program. While intended to provide consistency and clarity, the policy would have created separate schedules for warehousing/logistics, tech-based, and manufacturing developments - and placed the logistics sector at a significant disadvantage.
Augustine, representing Penn’s Northeast and the broader economic development community, argued that a rigid framework could have unintended and damaging consequences for Luzerne County’s economic momentum.
“The current LERTA proposal threatens to derail the positive momentum that our economy is experiencing,” Augustine warned. “By putting a set schedule for LERTA, you’re handicapping the process - especially for local municipalities. Companies will bypass Luzerne and look elsewhere.”
Making the Case for Flexibility
Augustine emphasized the importance of continuing Luzerne County’s current strategy: evaluating each LERTA request on its own merit. He warned that a one-size-fits-all approach would limit the county’s negotiating power and reduce its competitiveness against regions that offer more flexible incentives.
“Why wouldn’t you judge and negotiate each on its merits without handicapping the process from the beginning?” he asked council. “Council risks adopting a one-size-fits-all policy that will limit its own statutory flexibility — and scare away potential investors.”
Augustine also addressed concerns about overdevelopment in the southern part of the county and citizen opposition to new transmission lines. While not directly involved with the PPL Electric Utilities project, he acknowledged the broader tension between development and public sentiment, highlighting the need for thoughtful engagement and communication.
“Anytime that you do development, you get people that are for it and against it. It’s a double-edged sword,” he said. “Do we want to pay more taxes and not have development? That’s the other answer.”
Defending Warehousing & Logistics
Much of Augustine’s presentation centered on dispelling misconceptions about the logistics industry. He defended the sector’s role as a cornerstone of Luzerne County’s economy and a critical provider of entry-level jobs with upward mobility.
“Warehousing and distribution are industries that people love to hate,” he said, “Yet these are the same folks that order online from Amazon and expect the package in a day or even in a few hours.”
Augustine cited key data:
• Warehousing is Luzerne County’s third-largest business sector.
• It supports over 27,000 jobs and yields $1.4 billion in wages annually.
• The average annual compensation is now $52,000, a significant increase from just five years ago.
He explained that warehousing jobs - often criticized for being unskilled - are essential for employing residents not pursuing higher education and that the industry indirectly supports countless other businesses.
“Until our unemployment rate is zero, we want a job for everyone in Luzerne County who wants one - and we want those jobs to pay family-sustaining wages.”
The Power of Speculative Development
Augustine also pushed back on criticism of speculative or "spec" development, where buildings are constructed before a tenant is identified. He stressed that without spec construction, the region would not attract high-value companies who need shovel-ready space.
He pointed to the recent approval of a LERTA for Project Hazelnut, a 472-acre data center development near Humboldt Industrial Park, as a successful example. The land, previously considered unusable due to mining scars, is now poised to bring billions in tax revenue and hundreds of high-tech jobs.
“What LERTA is for is crap land,” Augustine said. “Council was absolutely right to vote for that LERTA. They attracted a major data center, and the county is looking at billions of dollars of tax revenue coming from that, as well as jobs.”
He further emphasized that companies rarely leave after tax breaks expire because of the substantial investments they make in their facilities, and many expand.
Looking Ahead
Luzerne County Council members expressed a range of views following Augustine’s remarks. While some voiced concerns about jobs, environmental impact, and housing, many acknowledged the strength of his arguments and the importance of maintaining the county’s competitiveness.
Council Chairman John Lombardo stated, “All development in this county is good development,” and noted that increased commercial revenue has prevented tax hikes in areas like the Pittston Area School District.
Augustine concluded his presentation with a message of urgency and opportunity:
“Council should be giving a check to every resident in the near future based on the investment we have on our desk.”
With over 20 million square feet of potential new development in the pipeline, including projects in Hazleton, Hanover Township, and Pittston, John Augustine’s leadership and advocacy continue to shape the economic future of Northeastern Pennsylvania — one project at a time.
Citizen’s Voice Article:
https://www.citizensvoice.com/2025/06/26/luzerne-county-council-still-reviewing-plan-for-tax-break-guidelines/
Times Leader Article:
https://www.timesleader.com/news/1704423/arguments-made-for-rejecting-luzerne-county-tax-break-schedule
Luzerne County Council Meeting, June 24, 2025:
https://www.youtube.com/live/ikslpE2OP20?t=7137s
