York City is one of a handful of cities in the running for an economic development program offered by the state. The application has been submitted and now city leaders are trying to drum up support.
CRIZ or City Revitalization Improvement Zone is an area of up to 130 acres. State and local taxes collected within the CRIZ will be used to repay project debt and redevelopment within that designated area. “All of the state tax revenue and the local business privilege tax is incumbered and set aside essentially in a separate bucket from the state,” said Representative Kevin Schreiber (D) 95th District. Meaning the money would stay in the improvement zone to entice businesses to move to the city and create jobs. “The city of York can designate 130 acre zone in the city. All of the businesses, the residential units, everything in that 130 residential area, all of the state tax revenue is set aside from the state. It’s sent right back into the local community and it’s reinvested into that area.”
“Our application included some very meticulous data, over ten thousand jobs could be created as a result of the economic development incentive, and upwards of a billion dollars in revenue for the commonwealth,” said Rep. Schreiber.
Representative Stan Saylor (R) Pa House Majority Whip said a number of businesses have already expressed interest in moving to the city if this program moves forward.”What we are talking about is ten thousand jobs here for York county, redevelopment of York city, and I think what people don’t understand is that our cities are being abandoned. This is a hope to revitalize our cities. The City of York as it goes forward, will have revenue that normally flows through the state, stay here in the city. This will help finance redevelopment programs help redevelopment move along faster,” said Rep. Saylor.
Only two cities will be chosen. A decision is expected sometime in January.
More information about The City Revitalization and Improvement Zone (CRIZ) from Pennsylvania Department of Community & Economic Development website:
The City Revitalization and Improvement Zone (CRIZ) Program was created by Act 52 of 2013. The Pennsylvania Department of Revenue (Revenue Department), the Pennsylvania Department of Community and Economic Development (DCED) and the Governor’s Office of Budget are tasked with administration of the CRIZ Program. These guidelines provide information for municipalities looking to apply to the CRIZ Program.
A CRIZ is an area of up to 130 acres, comprised of parcels designated by a contracting authority, which will provide economic development and job creation within a political subdivision. State and local taxes collected within the CRIZ will be used to repay debt service to stimulate economic development projects within the CRIZ.
The CRIZ Program also permits one pilot zone to be designated. A pilot zone is an area of not more than 130 acres designated by a contracting authority within a township or borough with a population of at least 7,000 based on the most recent federal decennial census. Program guidelines apply to both zones.
The focus of the program is to provide opportunity to spur new growth, helping to revive downtowns and create jobs for the residents in the regions. Vacant, desolate, underutilized or abandoned space will be developed, thereby creating jobs, increasing personal incomes, growing state and local tax revenues, reviving local economies and improving the lives of city residents and visitors.
Uses
Funds may only be used for the following:
- Payment of debt service on bonds issued for the construction, including related infrastructure and site preparation, reconstruction or renovation of a facility in the zone.
- Construction, including related infrastructure and site preparation, reconstruction or renovation of all or a part of a facility.
- Replenishment of amounts in debt service reserve funds established to pay debt service on bonds.
- Employment of an independent auditing firm to perform required duties on behalf of the contracting authority.
- Improvement or development of all or part of a zone.
- Improvement projects including fixtures and equipment for a facility owned by a public authority.
Funding
Bonds will be issued by the contracting authority. Various State and Local Tax Revenues created in the zone will be then used to pay off the bonds.
Eligibility
- A city with a population of at least 30,000 based upon the most recent federal decennial census designated as distressed under the Act of July 10, 1987 (P.L. 246, No. 47) that is not located in a home rule county.
- A home rule county where a city with a population of at least 30,000 based upon the most recent federal decennial census designated as distressed under the Act of July 10, 1987 (P.L. 246, No. 47).
- A city of the third class with a population of at least 30,000 based upon the most recent federal decennial census, so long as the city has not had a receiver appointed under Chapter 7 of the Act of July 10, 1987 (P.L. 246, No. 47).
- The CRIZ Program also permits one pilot zone to be designated. A pilot zone is an area of not more than 130 acres designated by a contracting authority within a township or borough with a population of at least 7,000 based on the most recent federal decennial census.
For more information about CRIZ click here