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Real estate developers from a company in State College that bought the former Lycoming Mall site cleared another hurdle toward their vision of breathing new life into what has been rebranded as "The District at Lycoming Valley."
The future stores and residences envisioned as part of "The District" are closer to reality today after a public hearing and vote by Muncy Township supervisors this week.
The supervisors' vote sealed an intermunicipal agreement for a 10-year Local Economic Revitalization Tax Assistance (LERTA) between the taxing bodies of the township with previous approval of the ordinance given by Muncy School District and Lycoming County commissioners.
Supervisors voted 2-1 for the LERTA, with Gary Harmon, board chairman, and Heath Ohnmeiss voting in favor while Supervisor Denise Artley voted against it, adding how she first spoke with township residents before making her decision.
With their meeting room packed with interested residents, supervisors held a public hearing to listen to residents air their concerns and gave Ara Kervandjian, executive vice president of Famvest, developers of the 135-acre Lycoming Mall property, time to outline the project and dispel rumors that the firm was building housing for undocumented migrants to live.
"Famvest does not now, before or anytime in the future include any plans to populate the existing buildings with undocumented immigrants and neither do we have any agreements or discuss with the United States INS for any new buildings," he said, a statement he repeated at the recent commissioners' meeting.
One of the conundrums is there are non-disclosure agreements between potential clients and once there are commitments of the tenants in writing then more can be forthcoming, he noted.
"We are happy to be here," Kervandjian said, describing how the rebranding of the former mall as "The District" was a part of the process of giving the development an identity.
Jason Fink, president and CEO of the Williamsport-Lycoming Chamber of Commerce, who was in attendance, also issued a statement following the supervisors' vote.
"The Chamber appreciates the support of Muncy Township in voting to enact the LERTA for The District. This will provide a key tool to the developers in attracting new commercial tenants to the redevelopment site," he said.
"We look forward to working with Famvest, the Township and County in rebuilding this former commercial complex into a vibrant next-gen, mixed-use retail and market-rate housing center," he said. "This will both increase the current value of the property and also add to the quality of life of our community."
Famvest has in excess of $75 million in projects in Lycoming County with a 10-year LERTA ordinance taxing municipalities to agree they are going to give a tax break on any new development, according to the reading of the ordinance by township Solicitor Scott Williams.
According to the language in the ordinance, within the "Lycoming Mall Revitalization Area," business improvements will be exempt from property taxes for the first six fiscal years for which improvements would otherwise be taxable, and that means 100% of the eligible assessment shall be exempted.
The LERTA has a sliding scale over the term such as the seventh year for improvements that would otherwise be taxable, 80% of the eligible assessment shall be exempted.
After the end of the LERTA, the exemption from real property taxes expires and real estate taxes shall be paid on 100% of the assessed value of the property.
The former mall site located at 300 Lycoming Mall Circle, includes a Best Buy parcel, but not Big Lots and other parcels identified in the ordinance.
Tax abatement is another of the developer's hurdles to clear, as they must meet any zoning ordinance requirements. With the inclusion of residential aspects, they may require a special exception before a zoning hearing board, along with subdivision, land development approvals and obtaining building permits that align with those in the Uniformed Construction Code, Williams and township officials said.
Not all were pleased with a perceived lack of transparency by the developer offering scant details on clients or in giving an affluent real estate company a tax break while the township residents are paying about 25% more a year in taxes.
"This is your golden ticket," said Terri Lockley, who looked at the supervisors requesting they deny it and allow herself and others time to seek more information through right-to-know requests made to governing agencies.
"I want to see this happen," said Gary Jones, a resident, but who was adamant the LERTA ordinance, as presented, should be amended because, he believed, in his reading of it, that it "overrides zoning."
If there are to be residential aspects in a commercial zone a special exception to the township zoning ordinance may have to be held, according to a township official.
Meanwhile, Tom Schaech, a former township supervisor, citing research saying that for every dollar spent on a development of this size $1.50 must be spent on delivery of services provided by police, fire and EMS.
Not all were opposed.
"We need more development," said Donnie Reese, a resident, who expressed support for seeing what might happen as the property remained idle unless there was a proper kind of redevelopment here.