Recently, the Upper Macungie Township Board of Supervisors passed two laws that will move a big project forward.
For the planned manufacturing campus of the drug company Eli Lilly, the township set up a Local Economic Revitalization Tax Assistance Act (LERTA) district. The Fogelsville Corporate Center, which is near Adams Road and Interstate 78, will be the site of the biggest economic development plan ever made for the Lehigh Valley. Jaindl Land Development owns the farmland that hasn't been built on yet.
LERTA lets taxing bodies in the Commonwealth of Pennsylvania create "revitalization zones" in troubled or underused areas so that new building or improvements can get tax breaks in the form of lower local property taxes. As time goes on, taxes are gradually raised on only the greater value of the improvements. This usually happens over 10 years, with the tax break decreasing over that time. In the first year, the tax break would cover 100% of the eligible assessment. Each year after that, the tax break would drop by 10%.
The developer must meet certain requirements set by the town in order to be eligible for the tax breaks. The developer sends the county assessor's office an annual report on the property's improvement value so that it can be used in figuring out the property's value and tax rate. People who live in LERTA districts still have to pay full taxes on their land; the tax break only applies to the increase in value caused by changes.
PROPERTIES FOR SALE IN UPPER MACUNGIE TOWNSHIP, PA
The three groups that collect property taxes—Parkland School District, Lehigh County, and Upper Macungie Township—must all agree with the LERTA in order for it to be used for their taxes. Officials from the township backed the LERTA, saying that putting it into effect would be good for Upper Macungie in the long run.
The pharmaceutical giant Lilly and Gov. Josh Shapiro in January plans for their campus in Lehigh Valley include 925,000 square feet of manufacturing room spread out over several buildings. They said that 850 jobs would be made possible by the project over the next five years.
The company was drawn to the area in part because the Pennsylvania Department of Community and Economic Development offered to give them $100 million in government grants.
Through the PA Edge Tax Credit Program, the DCED promised up to $50 million in tax credits. They also promised a $25 million grant through the Pennsylvania Strategic Investments to Enhance Sites Program and a $25 million Pennsylvania First grant.
The state has also promised to give up to $5 million to Lehigh Carbon Community College through the Redevelopment Assistance Capital Program to help build a workforce development training program that will help the company find new employees in the Lehigh Valley.
Lilly is also getting help from the PA Permit Fast Track Program. Shapiro started this program in November 2024 to make it easier to get permits for important infrastructure and economic development projects. Parts of Main Street and Haaf Road were cleared out by the legislature's second law for the Lilly project recently.