Politics & Government
Route 33 Interchange Progresses in Palmer Township
Palmer Township moves to create a tax deferment plan for developing the area around the Route 33 Interchange.
As the lead municipality on the project, Palmer Township supervisors approved a motion last week to execute a Tax Increment Financing agreement between Northampton County and the Easton Area School District.
Under a TIF, a bond or loan is taken out to pay for property improvements. The goal is to around the highway interchange. New revenue from property taxes is used toward paying off the bond.
"It took 30 seconds to sign the agreement," Supervisors Chairman David Colver said Friday. "The TIF has been in motion for quite a while. Now we've got everything. The township, school district and county are not responsible for the debt."
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Township Solicitor Charles Bruno said the agreement was important since "the township is the main player in moving the matter forward."
Those involved in the TIF agree to forgo tax revenue in the short term to get increased revenue later.
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Bruno said the agreement "limits the liability of the municipalities, county and school district" if a bond payment cannot be made.
Another safeguard is creating a Neighborhood Improvement District and governing board for the land around the Route 33 interchange. A vote on that plan is expected by mid-June.
The proposed interchange at Tatamy Road will feature multiple lanes and make the roads more accessible to residents in Palmer, Forks, Nazareth and Upper Nazareth.
Palmer officials believe with thousands of cars using Route 33 and Tatamy Road, there is a tremendous opportunity for growth, especially in the northern end of Palmer Township.
Colver said entering into the TIF and NID are not gambles for Palmer Township.
"It's all extremely positive," Colver said. "At the end of the day, the developer has the potential debt and risk. That's the way it should be, on the developer."
Colver said Palmer stands to benefit financially from the project.
"We get $15,000 in real estate taxes on the land in the first five years," Colver said. "Then we get 20 percent of increased revenue from years six through 20 until the bond is paid off."