Mar 1, 2017 4 min read

The owner of a large parcel adjacent to Tanger Outlets issued a warning to South Strabane Township supervisors Tuesday: If you don’t approve it, they won’t come.

According to Steve Thomas of Chapman Properties, the cornerstone of a planned mixed-use development, Ensinger Inc., will select a different location as its headquarters if supervisors don’t accept a portion of Tanger Boulevard as a public road.

“Ensinger is very close to finalizing an agreement on another site,” he said. “All I can say is, time is of the essence.”

Ensinger, a plastic fabrication company, entered into negotiations with Chapman two years ago to move its North Strabane Township North American headquarters to the 158-acre site. The $40 million complex would encompass a light manufacturing space, offices and a robotic warehouse system on 30 acres.

Thomas said Ensinger is “aggressively” pursuing other locations, including one in New Jersey, but the company “much prefers” the Chapman site.

“This whole deal hangs in the balance here. And if Ensinger falls through, then you’re talking about a developer with a piece of property – that they’re paying taxes on – going back to the drawing board,” said Jeffrey G. Wilhelm, an attorney representing Chapman. “And that’s going to change the game in terms of what the developer does legally with respect to this township.”

The board of supervisors directed solicitor Dennis Makel to enter into negotiations with Chapman. Makel said talks would commence with Wilhelm Wednesday morning.

“This will be on the front burner,” said Makel.

On Oct. 18, Chapman received conditional-use approval from the board to develop the Ensinger site. But supervisors at that same meeting upheld the rejection of the development’s master plan, which calls for a 2,888-foot portion of Tanger Boulevard to be taken over by the township.

A township ordinance requires that a road be public if it provides access to more than four parcels. Chapman intends to subdivide into nine parcels.

Thomas said Ensinger won’t develop there without the road being dedicated.

In a land-use appeal filed in Washington County Court Oct. 19 that has not yet been ruled upon, Wilhelm wrote if Tanger Boulevard remains private, no contiguous parcel could be developed, “which would, in effect, eliminate the possibility of certain lawful uses in the township.”

Supporters of the development say Tanger Boulevard was built to public road specifications as required by the Pennsylvania Tax Increment Financing Act (TIF) agreement with Tanger Outlets, current owner of that portion of the road.

Makel said the terms of the TIF would not be affected by the township taking over the road. Neither Chapman nor Ensinger is seeking a TIF.

Chapman has offered the township complete reimbursement of maintenance costs through the end of 2026; the cost to resurface the road after Ensinger’s construction is complete; $160,000 for the purchase of a truck with snow-plowing capabilities; and donation of a one-acre parcel to the nearby Strabane Manor homeowners association for development of an outdoor recreation area.

Wilhelm said Tuesday that offer depends upon Ensinger’s development.

Supervisors Bob Weber and Thomas Moore, who voted to uphold the rejection of the master plan with Supervisor Edward Mazur, have said they don’t want to set a precedent by accepting a private road.

Residents of Strabane Manor have come before the board in opposition of the development, worried about the impact the facility would have on their quality of life. But supporters say the plant is quiet and clean, will add good-paying jobs and will create significant tax revenue.

According to Thomas, the property, as it sits vacant, generates about $180 a year in real estate tax. Upon full build-out, he estimated the township would collect about $445,000 in taxes annually. Trinity Area School District would collect more than $1.5 million a year and Washington County about $350,000 a year, he said.

Chapman successfully petitioned the board to add light manufacturing to C-3 commercial districts in 2015 in order to clear the way for the international manufacturer. The final site plan includes four stages of development that would start with Ensinger and include future retail space, hotels, restaurants and offices.

Makel said Monday the board of supervisors would call a special meeting or executive session, if necessary.