York County commissioners approve LERTA for e-commerce project

Project Pegasus could take flight.

The York County commissioners Wednesday unanimously approved a Local Economic Revitalization Tax Assistance designation for the warehouse at 325 S. Salem Church Road, West Manchester Township, in the hopes of luring an e-commerce fulfillment site.

Since the company’s identity has been kept secret, the project has earned the code name of the mythological winged stallion.

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.

In the first year, the project would create about 250 jobs, said Darrell Auterson, president and CEO of the York County Economic Alliance, which has been shepherding the LERTA through the necessary taxing authorities. That number likely would increase after the expansion is completed. When it closed, American Signature employed 91.

The York County location is one of two being considered by the company, said Auterson, who outlined the proposal at last week’s commissioners meeting. He is not aware of what the competing location is.

A representative of Endurance Real Estate Group of Bala Cynwyd, which represents property owner 325 Salem Property LP, was to be at the meeting but got a flat tire near Reading, Auterson said.

“If we wait for him, will he tell us the name of the company?” asked Commissioner Steve Chronister.

“No,” Auterson replied firmly.

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.

The township and West York Area School District already approved the LERTA request.

A LERTA has been used many times in the county, Auterson said. One of the most prominent and successful was the Church & Dwight project in Jackson Township, which brought around 300 jobs to the manufacturer of Arm & Hammer products, and more are expected.

From here, Auterson said, YCEA would contact the e-commerce company regarding the approval today. He said the company wants to make a decision on the location by summer.

Source: Central Penn Business Journal