Mayor's economic plan affects loans, roads, taxes

Mayor Gabriel J. Campana seemed to get a generally favorable review from City Council Thursday night when he and his committee of economic advisers briefed them on a three-point economic development initiative.

The biggest component of the three is a 10-year LERTA tax abatement program. In addition to council's approval, it would need that of the county commissions and Williamsport Area School Board.

The mayor's LERTA plan received the endorsements of former mayors Jessie Bloom, Philip Preziosi and Steven Cappelli and would mirror LERTA programs already in place in Reading, Scranton and other state municipalities.

Bloom was the last mayor to have a 10-year LERTA program. Cappelli pointed out that he never succeeded in getting the support of both the county or school district for a program beyond five years.

He called the mayor's proposal an "aggressive ... tool (that is) worth further consideration."

A proposed amendment to the current Local Economic Revitalization Tax Assistance Ordinance calls for the 10-year program to have annual tax abatements that begin at 100 percent and reduce by 10 percent annually.

In addition, if approved by all three taxing bodies, it would be available even for applications involving new "buildings or alterations (begun) after Jan. 1, 2009."

Council members termed the proposal worth further discussion and asked Campana if the school district and county had been approached. He replied that both were made aware of the proposal and are "willing to discuss it."

Commissioner Ernie Larson was present for the briefing but did not participate in the discussion.

The other presentations involved using $125,058 of the $301,000 pending from the sale of the former Kennedy King housing project property to do additional road and storm sewer work in the Reach Road industrial area - specifically on Mosser Avenue and a portion of Reading Avenue.

The third proposal would create a revolving loan program for small businesses in conjunction with the Williamsport-Lycoming Chamber of Commerce and its Industrial Properties Corp.

The city funds will come from the under-used city Shopsteading Loan Program. Use of the funds is subject to approval by the state.

Vincent Matteo, executive director of the chamber, said the proposed loan program would be more flexible than the current city program can be. The city money would be matched by a like amount of chamber and IPC funding.

The new loan program would be managed in-house by the chamber. All city funds used for loans would go to businesses already in the city or moving into it, he said.