Tax relief sought for proposed Camelback hotel-water park ...

Resort hopes its $140M project will win same incentive pursued by Kalahari

"; document.getElementById('premiumMsg').innerHTML = contentStr; document.getElementById('premiumMsg').style.display = "block"; } else if (userSingleSale == "Reguser") { contentStr = "" + userStoriesViewed + " of 10 clicks used this month
UPGRADE your account for full access to PoconoRecord.com"; document.getElementById('premiumMsg').innerHTML = contentStr; document.getElementById('premiumMsg').style.display = "block"; } else if (userSingleSale == "PREMIUM01") { document.getElementById('premiumMsg').style.display = "none"; }

September 07, 2012

Kalahari Resorts isn't the only water park project looking for some temporary tax relief.

Camelback Mountain Resorts is seeking its own place in the Tax Increment Financing (TIF) program, hoping to help fund a proposed $140 million hotel and indoor water park project that has had trouble securing funding.

Co-owner Arthur Berry III said the project has been in the planning stages since 2005 when his group bought Camelback, but hit hard times after the economic downturn in 2008.

The hotel would be 400 rooms and the indoor water park would be 120,000 square feet, according to plans submitted to Pocono Township. It would be near the top of the snow-tubing hill.

The project has initial approval from Pocono Township, and Berry said the project is "shovel ready" ? as soon as the financing comes together.

That's where the TIF zone comes in.

The program allows for a project to defer its property taxes during the construction phase of the project, with those taxes being used to help fund infrastructure improvements.

Berry said Camelback has asked for about $9 million to be funded through the program, but doesn't expect to receive that much if it is approved.

"Right now, anything helps when it comes to financing from the bank," he said. "If a project is $100 million, and you can get even $5 million in assistance, that's $5 million the bank doesn't have to loan."

Approvals needed

A TIF approval must be granted from the local taxing bodies ? the municipality (Pocono Township), the school district (Pocono Mountain) and the county. A TIF committee with representatives from each of those entities studies the request and would draw a boundary for the TIF zone.

"Finance groups are the first to say, 'We like working in an area where this business is wanted,'" Berry said. "Once we get the ball rolling back in the Pocono Mountains, a lot more of our current properties in the Poconos will be willing to update and improve their facilities as well."

A committee has already been established to examine the TIF request of Kalahari Resorts. The Wisconsin-based company has asked for TIF relief to build its proposed resort complex with an indoor/outdoor water park and convention center around Pocono Manor in Tobyhanna Township.

That same committee would map out the Camelback TIF zone. The only change is that Pocono Township Supervisor Henry Bengel will sit on the committee.

Needs all the help he can get

Berry said he got the idea to apply for a TIF zone from Kalahari's application.

"We need every single dollar of help we can get," Berry said. "I was asked if I'd be interested in this type of program, and I said, 'You're gosh darn right I would be.'"

The downside of the TIF is that the taxing bodies don't receive immediate tax payments on the property under construction. Both Pocono Mountain School District and Pocono Township have had budget difficulties in the last two years.

"But if we don't get projects like these done, there won't be any future property taxes either," Berry said. "You won't have future sales tax. You won't have future payroll tax. This is a project that can help the whole business community."

The project already has received preliminary land development approval from Pocono Township. On Sept. 19, the township's zoning hearing board will hear Camelback officials ask for relief to construct a covered water slide that will go outside the building, then come back in.

That kind of construction is not specifically spelled out in the township's zoning laws, which is why Camelback needs to apply for the zoning variance.

We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Rules. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or fill out this form. New comments are only accepted for two weeks from the date of publication.

Source: http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20120907/NEWS/209070331/-1/rss01

samoyed kenny powers kenny powers carl hagelin triple play virginia tech shooting james neal