Bethlehem’s Planning Commission has recommended an expansion of the city’s Southside LERTA, a special tax zone in which increases in property assessments are gradually phased in over a period of years. The May 11 vote followed a presentation by Community and Economic Development Director Alicia Karner.

LERTA stands for Local Economic Revitalization Tax Assistance. Karner explained the program was adopted by the state in 1977. Bethlehem adopted the program in 1984 and has used it in the south and west sides.

It enabled a property owner to build major improvements, after which the assessment increase is phased in gradually over 10 years. For example, a business with a lot assessed at $50,000 which builds a plant worth $1 million will still pay the taxes on the land, but the taxes on the new structure will be phased in by $100,000 per year for the next decade.

This simple tool has brought many deteriorated areas back to life, Karner said. In Bethlehem, it has created 1,000 full-time jobs and $114.6 million in real estate assessments.

On the Southside, LERTA has lured defense contractor Curtiss-Wright, along with 96 high-paying jobs. REEB, which outgrew its Fountain Hill headquarters, employs 429 people. Primark warehouseing firm has brought 45 jobs.

Karner has asked that the LERTA be expanded on the Southside to include 315 Columbia St. as well as the Weldship Corporation on West Second Street.

A public hearing before city council was scheduled for May 17, and council must vote twice in June to officially approve the measure.