E-commerce company seeks LERTA in York County

An unnamed e-commerce company — code named Project Pegasus — is seeking a Local Economic Revitalization Tax Assistance designation for a warehouse in West Manchester Township, York County.

York County Economic Alliance President and CEO Darrell Auterson made a presentation to the York County commissioners on behalf of the company this morning regarding the property at 325 S. Salem Church Road . The LERTA already has been approved by the township and the West York Area School District, Auterson said.

The York County location is one of two finalists being considered for the company’s e-commerce fulfillment center, he said.

“This is a significant project we’ve been working on for some time,” he said. “We’ve been put on the short list.”

The company is proposing to expand the existing 624,800-square-foot Class A bulk warehouse/distribution facility that was home to American Signature Furniture by about 160,000 square feet. With the estimated $8.5 million investment in the expansion, the company would invest more than $52 million in capital improvements at the site, Auterson said.

The property was bought for $26 million in March by 325 Salem Property LP, part of which is controlled by Endurance Real Estate Group of Bala Cynwyd. According to York County property records, the existing building and land are valued at $17.3 million.

In the first year, the project would create about 250 jobs and that number likely would increase after the expansion is completed, he said. When it closed, American Signature employed 91.

The company wants to make a decision on its new location by the summer, Auterson told the commissioners. That means work could start this year and be completed some time next year.

A LERTA allows local taxing authorities, such as the township, school district and county, to exempt improvements to a business property if such property is in a deteriorated area. The taxing bodies would enact the exemption only on the value of the expansion or improvements to the property. In this case, the expansion would be exempt for 10 years and the exemption would be reduced 10 percent annually.

Commissioners Steve Chronister, Chris Reilly and Doug Hoke indicated they support the project.

“I think it’s a great project,” said Hoke, who added that he lives on South Salem Church Road. “We need the jobs and to utilize the building.”

The commissioners are likely to consider a resolution on the request at next week’s meeting, solicitor Michael Flannelly said.

Source: Central Penn Business Journal