READING, Pa. – Reading City Council, at its Committee of the Whole meeting Monday night, reviewed a proposed bill to extend the Local Economic Revitalization Tax Assistance for an additional 10 years.
The LERTA was originally adopted in 1985 and was extended three times.
Managing Director Jack Gombach said a LERTA is a very standard tax abatement program to help incentivize economic development.
Gombach said the LERTA expired last year.
The LERTA exempts a portion of the assessment attributed to new construction or improvements on sliding scale for a 10-year period.
The first year, the assessment percentage is exempted at 100% and is lowered by 10% each year, from the second year until the tenth year.
“The reason why we need this passed is so that the county can also offer its LERTA for city projects,” Gombach said.
Gombach said the city is aware that the developers for the former Dana Corp. site and the Fifth and Penn Streets development project have intentions of seeking LERTA approvals.
Council will be asked to adopt the ordinance (see page 5) next week.
Vacant property fees
Another proposed ordinance (see page 16) that will advance to next Monday’s voting meeting will create a vacant property registration program for owners of qualified vacant properties.
The program will require owners to pay semiannual fees with a sliding scale of fees ranging from $200 to $5,000.