Hamburg Area school directors were asked to provide tax relief to a proposed 1 million square foot warehouse/distribution center by a Montgomery County development company on Oct. 10.
If approved the center, which could create 500 full-time jobs, would be built near the Shartlesville exit of Interstate 78.
Trammel Crow Company, a developer and investor in commercial real estate, is seeking 10-year tax relief from Upper Bern Township and Berks County, as well as the school district.
Andrew Mele, managing director for Trammel Crow Co., West Conshohocken, told school directors that while the northeast corridor is a fertile location for big warehouses and distribution centers, tax relief is vital to attract a tenant.
A comparison of tax rates of surrounding counties where the company has similar developments showed that taxes at the Berks County site would be higher, according to Mele.
The property is currently zoned agricultural and in the state’s Clean and Green tax assessment program. Any taxes owed for changing the zoning would be paid for by the developer.
The project could be expected to generate $9.4 million in tax revenue over the 10-year period compared to $1.7 million as a Clean and Green farm, Mele said.
The cost of the project would also include about $1 million for road work.
Mele noted that an additional 250 jobs could be created in the area after the project is completed in areas such as food service, lodging and repairs.
“As a (former) educator It’s hard to argue with 500 jobs,” said Steven Keifer of Hamburg Area’s Our Town Foundation. “As a (former) superintendent it’s hard to argue with tax revenues.
“We are not only competing with other counties, but we are competing with other states (to attract business).”
School directors will consider the proposal at one of its November meetings.
The next meeting of school directors is Monday, Oct. 24 at 6:30 p.m. in the James A. Gilmartin Community Room.
