Newport Township tops Luzerne County municipalities for construction growth in past year

Out of all Luzerne County municipalities, Newport Township had the most property assessment growth over the past year, analysis of the latest tax base certification shows.

Far surpassing municipalities typically at the head of the pack, Newport Township picked up $52 million in assessed value between January 2023 and January this year — a 33% increase.

The township’s total tax base rose from $158 million to $210.1 million.

Township Manager Joseph Hillan welcomed the municipality’s top growth position, saying it is evidence continuing efforts to attract both residential and commercial business are paying off.

The lion’s share of the growth is from one structure — a Lowe’s coastal holding facility constructed by NorthPoint Development assessed at $51.48 million. Previously, the vacant parcel was assessed at $90,400.

In prior announcements about this project, Hillan said that project was “like a rebirth for the township.”

Like much of the major commercial development on former coal mining land in the county, the project has received a partial tax break under the Local Economic Revitalization Tax Assistance (LERTA) program for blighted properties, which means the property owner pays real estate taxes on the land throughout the break and receives a discount on taxes for the new development.

Hillan said the township’s real estate tax receipts on the property will gradually increase in coming years, with the full amount paid after the decade-long LERTA is completed.

While celebrating this project, Hillan emphasized hundreds of thousands of dollars in growth during the period stems from residential construction — a trend he expects to continue based on additional lots slated for development.

Last week, he stopped at three spots in the township with new houses and more rising up.

The first was near Sedor Hill in the Alden section.

His next visit was to townhouses under construction along Robert Street in the Sheatown neighborhood near the former Kirtland M. Smith Public School — a 1930 structure now housing apartments.

The new townhomes sit on a former softball field that was once a pond where Hillan enjoyed ice skating in his youth.

In the township’s Ridgeview section, Hillan checked out several houses under construction on Sunset View Drive in the Whitney Pointe development.

Walter and Geri Samselski decided to build a home there to be closer to family, relocating from Poughkeepsie, New York.

Geri said her requirements to move here included a back porch to enjoy the panoramic view. They bought two lots for added space.

“It is beautiful up here,” Geri said.

Walter said he looked at many lots before settling on the one in Newport Township.

He had been there before in a different context because it was once a coal strip mining site that had been a hangout when he was young.

Walter enjoys watching wildlife from his residential perch, including deer and bears.

“The view is nice. It’s quiet up here,” he said.

Unlike some municipalities that are more landlocked, the township has plenty of acreage available for commercial and residential development if investors are willing to tackle the infrastructure, Hillan said.

“The challenge is access,” he said.

Other growth

Most county municipalities — 52 of 76 — had new construction that boosted their real estate tax base over the past year, analysis shows.

Those with double digit-growth like Newport:

• Pittston Township, $38.36 million

• Hazle Township, $24.88 million

• Wright Township, $13.9 million

Three municipalities have billion-dollar tax bases: Hazle Township, $1.7 billion; Wilkes-Barre, $1.38 billion; and Hazleton, $1.01 billion.

Hazle Township surpassed Wilkes-Barre in 2016 due to continued expansion at the Humboldt Industrial Park off Interstate 81.

In this latest snapshot certification reading, Wilkes-Barre topped the 24 municipalities that experienced assessment reduction over the past year.

Wilkes-Barre’s total taxable property decreased $18.4 million.

As the county seat, the city is home to more tax-exempt government offices, colleges and universities.

Mirroring the loss of taxable property, the assessed value of tax-exempt property in the city increased $18.2 million in the past year, for a new total of $524.6 million in tax-exempt property, the certification shows.

Properties converted to tax-exempt status over the last year include nonprofit facilities that provide affordable medical care, counseling and housing, according to the city.

Wilkes-Barre Mayor George Brown said the net loss is approximately $22,000 in city taxes year-over-year.

But Brown said he is confident the city will more than make up for the decline and build the tax base through several planned projects returning property to the tax rolls.

One example he cited is Carey Holdings LLC’s plan to renovate the former Meyers High School building into a multi-use space housing apartments, public exercise facilities, retail space and more.

Another is Bloxton Investment Group’s purchase of the former First National Bank structure from the city so the structure can be incorporated into the developer’s conversion of the neighboring Luzerne Bank Building on Public Square into a 105-room “Tribute by Marriott brand” boutique hotel, Brown said.

The city also is transferring ownership of property on Carey Avenue to Habitat for Humanity to construct several residential structures that will go on the tax rolls, he said.

Brown also cited the city’s sale of property in the South Franklin Street area for the construction of a restaurant.

Big picture

The net effect of all the ups and downs countywide was a tax base increase of $169.2 million over the past year.

That increase equates to $1.07 million in additional property tax revenue for the county based on the current tax rate. Because the certification measures assessments only, it does not log the amount of taxes temporarily forgiven due to breaks.

In January this year, taxable property countywide totaled $21.44 billion, compared to $21.27 billion in January 2023.

County Manager Romilda Crocamo said the substantial increase “reflects a positive trend in economic development and property values.”

This tax base growth is a direct result of several factors, including increased investment in commercial and residential properties, expanding businesses and improving local economies, Crocamo said.

She also believes the county has created a “business-friendly environment,” which has attracted new businesses and encouraged existing ones to expand.

“As we move forward, Luzerne County remains committed to fostering an environment that attracts investment, promotes economic growth and improves the quality of life for all residents,” Crocamo said. “We will continue to work diligently to support businesses, strengthen the tax base and ensure the long-term sustainability of our county.”