Major Falls Development Plan Gets 15-Year Tax Break

FALLS TOWNSHIP, PA — Supervisors in Falls Township, along with other local governments, have approved a new set of rules meant to pave the way for a massive development at the old U.S. Steel site.

Earlier this month, Northpoint Development presented plans to redevelop 10 million square feet on 1,800 acres at the Keystone Industrial Port Complex. They plan to build 20 or more industrial warehouses on the site, bringing up to 10,000 jobs to the Levittown area, according to company officials.

Last week, Falls Township supervisors approved several measures to help that happen. During a virtual meeting, supervisors designated the bulk of the property as an opportunity investment zone. If approved by the state, that would exempt NorthPoint from taxes for a 15-year period, extending through 2035.

Instead, they approved a "payment in lieu of tax" agreement, which requires the developers to pay the equivalent of 110 percent of the taxes currently due on the site for the next 15 years.

In essence, the deal lets NorthPoint pay a little more than what the property would be taxed at right now, but get a break on new assessments when they improve the property.

Previously, the Pennsbury School District board had approved a similar tax measure. The Bucks County Board of Commissioners followed suit at a meeting on Wednesday. All three taxing authorities in Falls Township needed to approve the plan for it to be approved.

First opened in 1952, the Fairless Works site of U.S. Steel closed in 2001 and has been largely vacant ever since.

State Sen. Steve Santarsiero, a Democrat from Lower Makefield, backed the designation.

"I understand the importance and urgency in bringing both short-term construction and long-term, permanent jobs to our community," Santarsiero said. "At a time when so many are without work, this project will breathe new life into our local economy and help thousands of residents secure gainful employment."

Northpoint hopes to attract major companies like Amazon, Walmart, UPS and FedEx to the site. They say it will create 5,000-10,000 jobs in the Levittown area, as well as hundreds of construction jobs while it's being built.

In addition to the annual payments, NorthPoint would also contribute to local police and fire departments and for road maintenance.

Supervisors Chairman Jeff Dence touted the company's "big investment" plan, which would include $40-45 million in remediation work and cost $1.5 billion overall.

"No more Elcons," Dence said. "No more heavy industrial."

Elcon is an Israeli company that had proposed a chemical and pharmaceutical waste treatment plant on a 23-acre portion of the site. Falls supervisors unanimously voted against the plan last April and, after appealing in court, the company officially abandoned the plan this July.

Supervisors also voted to make Morrisville Municipal Authority the provider of water and sewer service on the 1,846-acre property. U.S. Steel currently provides those services. Falls Township does not have a water and sewer treatment plant.

Under the $1.5 billion plan, NorthPoint would rename the Keystone Industrial Port Complex to be the Keystone Trade Center. The Missouri-based company has said a land development application could be submitted later this month and they could start construction on the project's first phase in spring 2021.

Founded in 2012, NorthPoint Development is active in 24 states, with 355 employees and nine office locations. The U.S. Steel site would be the company's biggest project yet.