Berks will create $5 million infrastructure fund

The Berks County commissioners unanimously voted Thursday to work with the Berks County Industrial Development Authority to create an Infrastructure Investment Fund through an initial contribution of $5 million.

The Infrastructure Investment Fund ties into the county’s IMAGINE Berks economic development initiative and will serve as a revolving loan fund to infrastructure projects that lead to job creation or property tax growth.

Jeremy Zaborowski, executive director of BerksIDA, said the goal of the fund is to lend money to local taxing bodies to expand infrastructure necessary for businesses to expand or move into the region.

He said the fund would have attractive repayment terms, but still act as a loan so the fund can be replenished. The loans will be made anticipating land values to appreciate from the investment, raising county property tax dollars and providing some tax relief to county taxpayers.

The fund will reside with and be administered by BerksIDA. The county may choose to add additional dollars to the fund in the future.

Commissioners Chairman Christian Leinbach said the need for a local infrastructure funding program became obvious while working on the IMAGINE Berks plan. He said the fund will help ensure these needs are met for current and future economic development.

BerksIDA Board Chairman Eric Jenkins said the authority is happy to support IMAGINE Berks and foster investment in such a meaningful way.

“This investment fund aligns directly with the mission of BerksIDA and allows us to greatly expand our ability to serve Berks County businesses and residents,” he said.

Zaborowski credited Commissioner Michael Rivera for being integral to creating the fund, having convened numerous meetings and driving the process to make sure a program was crafted that met Berks’ unique needs.

“Berks County has numerous sites ripe for expansion or redevelopment, but the time and investment involved with installing or upgrading facilities often kills deals,” Rivera said. “This fund is meant to combat that challenge for Berks County.”

Commissioner Kevin Barnhardt said he sees this as a great way to invest in the future.

“This investment is expected to reap dividends for the county,” Barnhardt said. “By investing in the development and redevelopment of appropriate properties, those sites increase in value, providing property tax revenue growth through a more productive Berks County instead of a tax increase.”

Zaborowski said the fund aligns perfectly with the authority’s mission to promote collaborative, long-term, quality job creation and retention in Berks through site development, redevelopment and support.

“As one of the first in the state to implement such a program, we are excited to see it in action,” he said.