PITTSBURGH, PA & PHILADEPHIA, PA – December 30, 2021 – Leech Tishman Real Estate Practice Group Chair Kenneth C. Foltz, Sr. and attorneys John J. Jacko, III and Julia Wu recently represented River Pointe Logistics Centre, LLC (RPL) and New Demi Road, LLC (NDR) in a successful petition to create a Neighborhood Improvement District (NID) in Upper Mount Bethel Township, PA (Township). On Monday, December 27, 2021, the Upper Mount Bethel Township Board of Supervisors, in a 4-1 vote, approved the creation of a NID to provide for a funding source from RPL’s and NDR’s River Pointe Logistics Park, a proposed 725-acre manufacturing and logistics industrial park, that will provide for additional services for the River Pointe Logistics Park as well as Upper Mount Bethel Township. Foltz previously presented the NID preliminary and final plans, negotiated with the Township, at two public hearings in October and November 2021.
The NID, which will be operated by a non-profit NID management association, creates a special assessment structure that will collect an estimated $14.5 million in fees at development plan approval, as well as through construction permit issuance and post-construction annual maintenance fees. The NID funding structure will provide the funds necessary for additional services that will be utilized for the operation of the River Pointe Logistics Park without requiring the Township to raise taxes on Township residents. Several key examples of the additional services and associated specialized training are enhanced fire and life safety services, road maintenance, and ambulatory services that will be provided at no additional cost to the community. In addition, the NID funding will be utilized to acquire necessary equipment related to the additional services, with an estimated capital investment totaling $4.5 million.
The NID will include the Township’s community park and will offer five miles of publicly accessible hiking trails as well as 50 acres of preserved woodlands. The proposed NID budget also allocates $100,000 a year for use by the Township community park for its recreation and cultural programs. These fees will nearly double the budget of the Township, allowing for new community activities without increasing property taxes.
In addition to improving the existing Township community park, the proposed NID budget allocates the $3 million in fees expected to be collected at the development plan approval phase to the development and construction of a municipal building and environmental center for the Township that will be open for use by all Township residents.
When complete, River Pointe Logistics Park is expected to generate more than 4,000 jobs. The proposed industrial development, located within a one-day drive of one-third of the U.S. population, is expected to attract world-class manufacturers who are seeking easy access to Northeastern markets as well as state-of-the-art customized facilities that meet their demands, to the Township.
Ken Foltz, Leech Tishman Real Estate Chair, stated, “We would like to congratulate our clients RPL and NDR on the successful approval of the creation of a NID in Upper Mount Bethel Township. The proactive utilization of the Neighborhood Improvement District will greatly enhance the development of the River Pointe Logistics Park as well as provide significant benefits to the residents of Upper Mount Bethel Township at no cost to the residents of the Township.” Foltz continued, “The Real Estate team at Leech Tishman was pleased to assist RPL and NDR in facilitating the creation of this NID, which we believe will greatly benefit the Township and its residents.”
Lou Pektor, President of River Pointe Logistics Centre, LLC and New Demi Road, LLC, stated “The property will be substantially different post-development, than as it is today. It made logical sense to utilize a NID to provide the Township with the funds needed for the enhanced municipal services required post-development, such as ambulatory and fire response and road maintenance services.” Pektor continued, “That not only protects our investment in the property, but also enhances the services the Township can provide to its residents.”
Leech Tishman’s Real Estate Practice Group
Leech Tishman’s Real Estate Practice Group is skilled in handling a broad range of sophisticated and complex commercial real estate transactions. Our property attorneys regularly handle real estate legal matters involving commercial acquisition, sales and lease transactions, as well as complex development projects, including multi-use and/or multi-tenant projects, shopping centers, condominiums and planned communities and projects involving historic tax credits, as well as other tax credit structures.
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Leech Tishman Fuscaldo & Lampl is a full-service law firm dedicated to assisting individuals, businesses, and institutions. Leech Tishman offers legal services in business restructuring & insolvency, corporate matters, employment & labor, estates & trusts, intellectual property, litigation & alternative dispute resolution, and real estate. In addition, the firm offers a wide range of legal services to clients in the aviation & aerospace, cannabis, construction, energy & natural resources, healthcare, and hospitality industries. Headquartered in Pittsburgh, PA, Leech Tishman also has offices in Chicago, Los Angeles, New York, Philadelphia, Sarasota, Washington, D.C. and Wilmington, DE.