Politics & Government

Route 33 Interchange Project Clears First Hurdle

Palmer Township endorses project using tax-increment financing.

The first of three hurdles on the path to a new has been cleared with an endorsement from the Palmer Township Board of Supervisors.

On Tuesday, the supervisors voted 4-0 in favor of a resolution for a Route 33 tax-increment financing (TIF) plan. Not present was Supervisor Robert Smith.

A TIF plan uses expected future increases in tax revenue to finance improvement projects that would spur development and increase the value of land.

The interchange would connect Route 33 with Main Street in Tatamy and would replace the bridge now spanning the highway.

“I feel very comfortable that this is something that is good for Palmer Township and the surrounding communities,” said Supervisor David Colver. “Ten, 15, 20 years from now, I think we’ll see the benefits of this."

“This is probably one of the few real large tracts of land that is conducive to this type of development,” said Supervisor Robert Lammi. “Throughout the valley we’re seeing these type of projects. This may be the largest one we’ve seen in Northampton County.”

The Northampton County Redevelopment Authority is looking for a 20-year bond term for the $33 million project, which includes the interchange and an industrial park. The funds will come from the township, the Easton Area School District and Northampton County Council.

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Under the proposal, Palmer would receive $13,661 annually in tax revenue, or $273,220 over the 20-year period. But should the project gain approval from the school district and county, the township could then receive an estimated $5.53 million over the 20-year period, according to Joseph Hogan, a planning consultant with Mullin & Lonergan Associates.

The school district and county would receive an estimated $22.96 million and $4 million, respectively, over the 20 years.

The 689-acre parcel is solely in Palmer Township but is surrounded by a total of seven municipalities -- the city of Easton, the boroughs of West Easton, Glendon and Wilson and the townships of Palmer, Forks and Williams.

The interchange portion of the project is estimated to cost $22 million, according to Hogan. Once approved, construction could start by July 2012 and would take 13 months to complete, he added.

The two remaining hurdles are approval from the school district and county. A presentation to the school board is set for its August meeting.

Palmer, now undergoing a zoning map review of the township's north end, would have control over what type of businesses would go on the 689-acre parcel.

“This ties into what the township has been thinking for more than 20 yeears," said Colver.

Possible uses would be retail, office and industrial. The supervisors have said they are not in favor of trying to bring in "big box" type of stores. Instead, they want to attract businesses that add jobs to the township. Hogan estimates about 3,700 jobs would be generated through the project.

Original plans for the Route 33 interchange had called for Charles Chrin Companies to solely do the work. But the estimated cost exceeded the company’s capabilities. According to Colver, just the cost of the new bridge would be an estimated $7 million to $8 million. Additional sources of revenue were sought out before deciding on bonds, Hogan said.

“If we don’t get the interchange, we're not going to get it [the north end] developed," said Supervisor Michael Mitchell.

The township, school district and county would not be responsible for paying for the bonds at any point, officials said. Chrin, who would also be the landowner, is responsible for bond payments. Under Pennsylvania law, public works projects must be contracted for 100 percent, assuring that the project will be completed once started.

This is not the first TIF project in which the township has been involved. The Palmer Town Centre was constructed under a TIF plan.

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