PITTSTON TWP. — Supervisors voted 2-1 Monday night to approve an agreement that would transfer approximately 22 acres of undeveloped land at Stauffer Pointe to the city of Pittston.
The agreement is a municipal boundary change and does not mean Pittston Twp. is merging with the city of Pittston.
The land involved is part of the undeveloped portion of Stauffer Pointe, where future townhomes and single-family homes are planned.
Township officials say current residents will not be affected by the agreement. Properties that are already built or under construction will remain in Pittston Twp., meaning those residents will continue to pay township taxes and receive township services.
Pittston Twp. Secretary Kyle Rozitski said the same would apply to future properties once construction has begun.
“If there’s a shovel in the ground you’re going to be in Pittston Township,” Rozitski said. “Again, they would be basically with the same services and same taxes as us.”
Under the proposed 35-year agreement, the city of Pittston would provide Pittston Twp. with 35% of certain revenue generated from properties developed on the transferred land.
That includes real estate taxes, earned income taxes, realty transfer taxes and permit fees.
Because the city of Pittston’s tax rates are higher than the township’s, officials say the arrangement could generate more revenue for Pittston Twp. than if the properties remained in the township.
For example, the township currently has a 1.9-mill real estate tax rate. Under the agreement, the township would receive approximately 2.8 mills of Pittston City’s 8.1 mills collected from the transferred properties.
The township would also receive a portion of the city’s earned income tax and realty transfer tax revenue.
“Throughout the financial aspects of it, it works out beneficial for the township,” Rozitski said.
The exact amount of revenue the township could receive will depend on the number and value of properties ultimately developed.
Township officials said the planned homes are expected to sell for more than $350,000.
The agreement also calls for the city of Pittston to provide police coverage for the development, handle snow removal and partner with the township on a park.
The vote passed 2-1.
The supervisor who voted against the agreement raised concerns about giving up the township’s future tax base.
The supervisor also expressed concern about what could happen after the 35-year agreement expires, particularly if the anticipated townhouses are not built or sold as expected.
Despite those concerns, the agreement was approved.
The agreement will now move to Luzerne County for review and is expected to go through the state process as well.
If there are no issues or delays, officials said the boundary change could take effect by Jan. 1, 2027.
This story was originally published on fox56.com.
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This story was originally published on fox56.com.