[Adopted 1-6-2025 by Ord. No. 2025-03]
This article shall be known as the "Pocono Township Local Economic Revitalization Tax Assistance Ordinance."
As used in this article, the following words and phrases shall have the meaning set forth below:
IMPROVEMENT
Means repair, construction, or reconstruction, including alterations and additions, having the effect of rehabilitating a building with a minimum actual cost of the improvement being $1,000,000, verified by a Pennsylvania registered design professional. The purpose of the improvement is for the following: the building becomes habitable or attains higher standards of safety, health, economic use, or amenity; it is adaptively re-used; or is brought into compliance with laws, ordinances, or regulations governing such standards; or is new construction in the LERTA Designated Area.
LERTA DESIGNATED AREA
Refers to the boundaries of the C (Commercial), (I) Industrial and RD (Recreational) Zoning Districts.
NONRESIDENTIAL
Means any industrial, commercial, nonresidential use building, or other business property located in the LERTA Designated Area.
RESIDENTIAL
As hereinafter defined, means mixed-use (commercial and residential buildings); apartment houses with three or more units; condominium buildings with four or more units.
A. 
The properties must be used or adaptively reused in compliance with current permitted uses and cannot be demolished.
B. 
The actual cost of the new construction or improvements to a building to qualify for the exemption must be in excess of $1,000,000 in order for the property to be eligible for the LERTA tax abatement.
C. 
Ordinary upkeep and maintenance – painting, roof replacement, landscaping, deteriorated materials replacement – shall not be deemed an improvement. If this work is included in a project, it shall not be counted toward meeting the minimum investment for program eligibility.
D. 
In all cases, the exemption from taxes shall be limited to that portion of the additional assessment attributable to the improvement or new construction, as the case may be, and for which a separate assessment has been made by the Monroe County Board of Assessment. No tax exemption shall be granted if the property owner does not secure the necessary and proper permits prior to improving the property, including but not limited to, Zoning and Building Codes. No tax exemption shall be granted if the property, as completed, does not comply with the minimum standards of all applicable Township Ordinances, including but not limited to Zoning and Building Codes.
E. 
The new assessment value will not be applied to the property until occupancy of the building is granted in accordance with applicable building codes or a fully signed and completed building permit copy is received.
F. 
The exemption from taxes hereunder shall be forfeited by the applicant and/or any subsequent owner of the real estate for failure to pay nonexempt real estate taxes by their due date that may be paid without penalty. Upon receipt of notice of nonpayment of nonexempt real estate taxes, the Township Manager shall direct the Monroe County Assessment Office, the Pocono Mountain School District Business Office and the Township Finance Department to discontinue the exemption.
G. 
In any case, after the effective date of this article, where a property in the LERTA program property is damaged or destroyed, and where the assessed valuation of the property affected has been reduced as a result of said damage, the exemption from real property taxation authorized shall be limited to that portion of new assessment attributable to the actual cost of improvements or construction that is in excess of the original assessment that existed prior to damage.
A. 
For the five years immediately following the year in which the LERTA application is approved for a property in the C (Commercial) Zoning District, the following real estate tax exemption shall be in effect:
Length
Portion Exemption
First Year
100%
Second Year
80%
Third Year
60%
Fourth Year
40%
Fifth Year
20%
After the fifth year, the exemption shall terminate.
B. 
For the 10 years immediately following the year in which the LERTA application is approved for a property in the (I) Industrial or RD (Recreation) Zoning District, the following real estate tax exemption schedule shall be in effect:
Length
Portion Exemption
First Year
100%
Second Year
90%
Third Year
80%
Fourth Year
70%
Fifth Year
60%
Sixth Year
50%
Seventh Year
40%
Eighth Year
30%
Ninth Year
20%
Tenth Year
10%
After the tenth year, the exemption shall terminate.
C. 
The exemption from taxes granted under this article shall be upon the property exempted and shall not terminate upon the sale or exchange of the property.
D. 
If an eligible property is granted tax exemption pursuant to the ordinance, the exemption shall not, during the exemption period, be considered as a factor in assessing other properties.
E. 
If the use of the property at the time the exemption is granted is modified, terminated or changed during the respective exemption period in any way which would have affected the exemption if the property had been so used when the exemption was granted, then, at the election of the Township Board of Commissioners, the exemption shall terminate as of the date the use was modified or terminated if the Township Board of Commissioners determine that continuation of the exemption would be inconsistent with the purposes of this article.
A. 
Any person or entity desiring tax exemption pursuant to the LERTA Program must apply to the Township prior to or at the time of obtaining a building permit for new construction or improvement. Applicants shall also provide a copy of the exemption request to the Monroe County Assessment Office on the same day it is submitted to the Township. Applicants shall also file a copy of the exemption request with the Business Office of the Pocono Mountain School District.
B. 
Appeals from the reassessment and the amount eligible for the exemption may be taken by the taxpayer or the local taxing authority as provided by law.
C. 
The application must be in writing, utilizing the LERTA Program application form, setting forth the following information:
(1) 
The date the building permit was issued for said improvement.
(2) 
The location of the property.
(3) 
The current use(s) and proposed use(s) of the property.
(4) 
The type of improvements or new construction.
(5) 
The summary of the plan of the improvements or new construction.
(6) 
The actual cost of the improvements or new construction is verified by a Pennsylvania registered design professional. Improvement costs must exceed $1,000,000 with ordinary maintenance expenses not being counted in the $1,000,000 minimum.
(7) 
Whether or not the property has been condemned or cited by any governmental body for noncompliance with laws, regulations, and/or ordinances.
(8) 
The property has been inspected and examined by a Pennsylvania registered design professional acting on behalf of the Township. The cost of such inspection shall be reimbursed to the Township by the applicant, regardless of whether or not the application is approved.
(9) 
Such additional information as the Township may require.
D. 
The cost of improvements or new construction to be exempted.
E. 
Each applicant for and receiving an exemption under the LERTA Program agrees, that upon completion of the respective exemption schedule, not to take any appeals for reassessment of the LERTA unless the property is reassessed by the County of Monroe during the LERTA.
F. 
No person or entity, or such person's or entity's subsidiaries, affiliates or other associated holdings, will be eligible for exemption under the LERTA Program unless all property taxes are current, there are no outstanding municipal liens against the property, and all fees for municipal services (including, but not limited to, water, sewer and trash services) are current for all properties such person's or entity's, or such person's or entity's subsidiaries, affiliates or other associated holdings owned in the Township.
G. 
A copy of the exemption request will be forwarded to the Monroe County Board of Assessment Appeals by the Township Manager. Within 60 days, the Board will, after completion of construction, assess separately the improvement and calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by the LERTA Program and notify the taxpayer and the local taxing authorities of the reassessment and amounts of the assessment eligible for exemption. This reassessment is required by the application of the LERTA abatement, and any applicant applying for the abatement explicitly agrees that it does not constitute a spot reassessment. Reassessment will be applied to the improvement that has been made as part of the LERTA application.
An application for exemption from Township real estate taxes may be made at any time within five years from the effective date of this article.
The Township may, by ordinance enacted from time to time, extend the time for filing an application from exemption from Township real estate taxes. However, in no event shall any extension period exceed five years.
The exemption from Township real property taxes provided for in this article shall be forfeited by the application and/or any subsequent owner of the property and such exemption shall be revoked by the Township upon the occurrence of any of the following:
A. 
The failure to pay in full any nonexempt real estate taxes by the last day of the time period to pay such taxes without penalty. Upon receipt of the notice of nonpayment of nonexempt real property taxes, the Township Treasurer shall immediately terminate the exemption.
B. 
The failure to pay when due any amount due and owing to the Township. Upon receipt of notice of nonpayment of any such amount, the Township Treasurer shall immediately terminate the exemption.
C. 
The failure to obtain and pay in full all fees for all necessary and proper permits, licenses, and certificates prior to commencement of construction of the improvements to, or occupancy of, the property.
D. 
The failure to comply with the minimum standards established by all applicable laws, ordinances, codes, rules, and regulations.
E. 
The failure to comply with the provisions of this article.