To make up for lost taxes, Butler Auto Auction will pay Jackson $25,000 a year until it develops its property.

The company also told township supervisors that it will make improvements to the intersection near its Route 528 location before the end of the year.

In 2001, Jackson granted the company conditional use for the 135 acres, and the auto auction has since used it to park cars. Because the company has not fully developed the property, the township has not been able to collect as much in property taxes as it would if the site were finished.

Auto auction attorney Matt Carl said March 16 the company will make $25,000 annual payments in lieu of taxes, retroactive to 2003.

Township Solicitor Blaine Lucas said the company will begin making improvements along Route 528 near its entrance this summer.

The $700,000 project will include creating a new street across Route 528 from the auto auction entrance, giving access to both Tomlinson Road and McCarrell Lane. The roads now have separate entrances on 528. The auto auction also will install a traffic signal on Route 528 at the Interstate 79 northbound off-ramp.

Some residents have said the traffic signal would be more useful at the auto auction entrance. But auto auction officials said PennDOT now considers the intersection with Interstate 79 to be failing and ordered the light put there instead. PennDOT said a second signal at the auction entrance would not be allowed because the two lights would be too close together.

Lucas said the company has agreed to complete the project by Oct. 31.