Pocono News Section

Taxes are about to go up, Way up.

Taxes are about to go up, Way up. - Wednesday, August 26, 2009 at 3:52PM EST

Reported by: Laurie Monteforte
Wednesday, Aug 26, 2009 @ 03:52pm EST
WESTFALL TOWNSHIP, PIKE COUNTY - Some apparent political back room dealings about 20 years ago will now cost tax payers in Pike County.

A township of just about 2,500 people has to pay six million dollars to settle a lawsuit.

People who ran Westfall Township in the 80s made back room decisions that will cost the people who live there now big time.

Lester Buchanan is the current Vice Chairman of the Westfall Township Board of Supervisors. He said, "The taxpayers will definitely see a tax increase."

In the late 80s developer David Katz wanted to build in the township. He sued claiming township supervisors held secret closed door meetings to change zoning rules so he couldn't build. Buchanan said, "They made a mistake. Obviously they wronged Mr. Katz."

None of those supervisors now serve on the board. Buchanan told Eyewitness News supervisors tried to settle with Katz for years but it never worked and the township was eventually forced into bankruptcy. He said the new agreement is better than any previous deal. He explained, "This is the first time we've been able to sit down and actually come to an agreement the township could actually live up to."

That agreement will cost taxpayers. The township must pay Katz six million dollars over the next 20 years. That breaks down to about $3,000 per person who lives in the township. Supervisors are considering several different tax plans. One is a property tax increase. Another is a wage tax. The third a tax on people who work in the township but live somewhere else. Buchanan said, "It'll probably be a combination of the three so the burden is not placed all on the homeowners."

A mistake nearly two decades old will force people in Westfall to pay up for two decades.

Buchanan said David Katz still owns hundreds of acres in the Township. He hopes the developer does something with the land.