A township in Pike County is filing for bankruptcy. Supervisors there said they are doing it to save taxpayers thousands of dollars.
Lester Buchanan will appear before a federal judge in Wilkes-Barre on Thursday. He explained why he and his fellow Westfall Township supervisors filed for Chapter 9 bankruptcy protection. "It's the only recourse we have to protect our citizens from what would be an unbearable amount of taxes to pay, this $20 million," Buchanan said.
The township owes developer David Katz $20 million after he won a lawsuit in 1999.
A federal judge in Scranton ruled the supervisors, who are no longer with the township, were wrong in not letting Katz build on the land he owns in Westfall Township.
Township supervisors said David Katz owns 750 acres and planned to build about 1,500 homes there. He also planned to build a hotel on another 3.3 acre plot. Both plots are still empty.
Buchanan said services like police and road maintenance will not be affected. He added if the residents had to foot the bill, each family would pay an extra $25,000 in taxes.
Westfall resident Ellsworth Smith said, "I think it's the only way they could go. I don't think they had much choice in it. I mean, the people can't afford higher taxes."
Only a municipality can file for Chapter 9, so it can continue to operate while managing its debt. Supervisors said Katz lives in Florida. He could not be reached for comment.
Lester Buchanan will appear before a federal judge in Wilkes-Barre on Thursday. He explained why he and his fellow Westfall Township supervisors filed for Chapter 9 bankruptcy protection. "It's the only recourse we have to protect our citizens from what would be an unbearable amount of taxes to pay, this $20 million," Buchanan said.
The township owes developer David Katz $20 million after he won a lawsuit in 1999.
A federal judge in Scranton ruled the supervisors, who are no longer with the township, were wrong in not letting Katz build on the land he owns in Westfall Township.
Township supervisors said David Katz owns 750 acres and planned to build about 1,500 homes there. He also planned to build a hotel on another 3.3 acre plot. Both plots are still empty.
Buchanan said services like police and road maintenance will not be affected. He added if the residents had to foot the bill, each family would pay an extra $25,000 in taxes.
Westfall resident Ellsworth Smith said, "I think it's the only way they could go. I don't think they had much choice in it. I mean, the people can't afford higher taxes."
Only a municipality can file for Chapter 9, so it can continue to operate while managing its debt. Supervisors said Katz lives in Florida. He could not be reached for comment.
