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<ul><li><p>PENNSYLVANIA KEYSTONEOPPORTUNITY ZONEGrowing &amp; SustainingPennsylvanias Economy</p><p>An Overview 2008-2010</p></li><li><p>2</p><p>The Humboldt Industrial Park is located in the north east section of</p><p>the township just north of the Village of Sheppton. The industrial</p><p>park has been generating income for the township through earned</p><p>income tax and local service tax during the years of the KOZ. In 2011</p><p>most of the parcels started paying real estate tax, this increased our</p><p>tax income $63,000.00. This additional income provides more</p><p>services to the taxpayers.</p><p>- Dennis J. Antonelli, East Union Township Supervisor</p><p>Cover Photo: Butz Corporate Center - Allentown, Pennsylvania</p></li><li><p>PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 3</p><p>&gt; &gt; &gt; PROGRAM OVERVIEW</p><p>The Keystone Opportunity Zone (KOZ) Program is one </p><p>of the nations boldest and most innovative economic </p><p>and community development programs.</p><p>&gt; Unique program to develop communitys underutilized land and buildings</p><p>&gt; Promotes business districts and a well-balanced approach to communityrevitalization</p><p>&gt; Consists of 12 zones in 61 counties</p><p>&gt; Covers more than 46,000 acres</p><p>&gt; Local communities designate their own Keystone Opportunity Zones</p><p>&gt; Administered through the Department of Community and Economic Developmentpartnering with Departments of Revenue and Labor and Industry</p><p>&gt; Original Zones expired December 31, 2010 providing host communities withsignificant new tax revenue</p></li><li><p>4</p><p>WyoTech is located in Blairsville, Indiana County, PA. WyoTech is an automotive school with the goal of supplying</p><p>the industry with above standard entry-level technicians. The Blairsville facility opened in 2002 with Automotive</p><p>and Collision/Refinishing Programs. The facility employs 174 employees.</p></li><li><p>PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 5</p><p>&gt; &gt; &gt; ECONOMIC IMPACT</p><p>Commercial</p><p>Real Estate Development</p><p>Retail</p><p>Financial Services</p><p>Manufacturing</p><p>Transportation &amp; Logic</p><p>48%</p><p>16%</p><p>14%</p><p>4%1% 1%</p><p>16%</p><p>BioScience</p><p>Research &amp; Development</p><p>Manufacturing</p><p>0 2,000 4,000 6,000 8,000 10,000 12,000</p><p>Transportation &amp; Logistic</p><p>Retail</p><p>Real Estate Development</p><p>Information Technology</p><p>Financial Services</p><p>Commercial</p><p>Business Services</p><p>BioScience</p><p>14,000</p><p>KOZ Investment by Industry</p><p>KOZ Job Creation by Industry</p></li><li><p>6</p><p>&gt; &gt; &gt; SOUTHERN ALLEGHENIES</p><p>The KOZ has had an incredibly positive impact on the community in Bedford Township, Bedford County. Bette</p><p>Slayton, President of the Bedford County Development Association, said it best when she described the </p><p>Omni Bedford Springs Resort as the poster child for the KOZ program. The reopening of the historic hotel has</p><p>spurred the development of the downtown with new businesses, retail stores and restaurants. The Omni Bedford</p><p>Springs Resort was recently rated #8 on the Top Resorts in North America by Travel &amp; Leisure. The November 2011</p><p>issue of Martha Stewart Living Magazine dedicates an 8-page spread on the resort and surrounding area.</p><p>The Bedford Resort Partners undertook a historic restoration of the Omni Bedford Springs Resort. The iconic hotel</p><p>opened over 200 years ago, and was designated a National Historic Landmark in 1984. In 1983, the resort had to</p><p>close its doors due to a flood and again in 1987 due to financial hardships that the hotel could not recover from.</p><p>Few properties can boast the historic significance of the Bedford Springs Resort, located in the Allegheny Mountains</p><p>of south-central Pennsylvania. For more than 200 years, the eight mineral springs located on the resorts property</p><p>served as an important gathering place. Eventually, the resort would be the site of many significant moments in</p><p>American history, hosting a long list of celebrities, wealthy clientele, corporate magnates and dignitaries from</p><p>around the world. To date, the resort has hosted 10 US presidents, seven of whom visited during their presidency.</p><p>Omni Bedford Springs Resort circa 2006</p><p>BEFORE</p></li><li><p>PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 7</p><p>In 2004, the resort embarked upon an unprecedented restoration and expansion effort. The KOZ designation</p><p>allowed for the restoration to be made. In 2007, the Bedford Springs Resort was returned to its original beauty and</p><p>is the perfect blend of the past and the future. </p><p>The total cost of the restoration and expansion was $180 million, an investment made with both private and public</p><p>funds. Currently there are 400 employees at the resort, 270 are employed full time. The KOZ expired at the end of</p><p>2010 and the property is currently on the tax rolls. The resort pays a 2% hotel tax that is now generating $250,000</p><p>a year for the community. </p><p>Omni Bedford Springs Resort</p><p>The KOZ program played a huge role in enabling the hotel to get on its feet.</p><p>Without the KOZ program, the hotel would not have reopened.</p><p>- Scott P. Stuckey, General Manager for Omni Bedford Springs Resort</p><p>AFTER</p></li><li><p>8</p><p>&gt; &gt; &gt; SCHUYLKILL / CARBON</p><p>In 1995, the Schuylkill Economic Development Corporation, (SEDCO), acquired a 175 acre parcel of land from the</p><p>Schuylkill County Tax Claim Bureau in Tremont Township along State Route 209. The parcel, a former mining</p><p>operation which was both strip mined and deep mined in the early part of the 20th century, was in the possession</p><p>of the county as a result of unpaid property taxes. The property was pock marked with pits filled with illegally</p><p>dumped household garbage and generally overgrown with weeds and brush. It had no access to public sewer or</p><p>water facilities.</p><p>SEDCO invested $66,000 for remediation and preparation of the site. In 1998, they were granted an original KOZ</p><p>designation and rezoned for industrial use. The KOZ designation took effect on January 1, 1999. </p><p>Big Lots/Consolidated Stores worked with the Governors Action Team and signed a purchase agreement with</p><p>SEDCO in June 1999. As part of the negotiation, the company promised 300 jobs and a capital expenditure of $25</p><p>million. They constructed a 1.3 million sq. ft. building which now employs 438 people in a very rural section of</p><p>Schuylkill County. Property value went from $0 in 1995 to $29,183,620 in 2011 when the KOZ expired.</p><p>The building represents the largest structure in Schuylkill County; its construction increased the assessed value of</p><p>all properties in Tremont Township by 359% from $5,237,120 before Big Lots to $9,828,930 after Big Lots KOZ</p><p>expired in 2010. More people work at the distribution center than live in all Tremont Township (250).</p><p>Big Lots/Consolidated Stores - Tremont Township</p></li><li><p>PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 9</p><p>&gt; &gt; &gt; PHILADELPHIA</p><p>Case Paper is one of the largest, if not the largest, paper merchant/converter in the United States. Headquartered</p><p>in New York, the company has offices in 7 major U.S. cities, including Philadelphia, and an office in Toronto.</p><p>Case Paper moved into its Philadelphia location in 1988 and occupied the basement and first floors of an old condo</p><p>building on Tioga Street. Case Paper also rented a portion of the adjacent building, known as the E Street</p><p>Building. In 1997, the company was looking to create a facility to combine its Long Island/Queens office with the</p><p>Philadelphia office. Originally, Case Paper was working with a neighboring county at a specific brownfield site.</p><p>The site had some contamination and engineering problems they were trying to work through. </p><p>Meanwhile, the Tioga Street area in Philadelphia was becoming increasingly undesirable, with more and more</p><p>businesses shutting their doors and abandoning the area. Around this same time, the enacting KOZ legislation was</p><p>being finalized and Philadelphia officials recognized the importance of including the Tioga Street location as a</p><p>designated KOZ in an attempt to avoid complete deterioration of the area. </p><p>Upon learning of the approved KOZ designation, Case Paper decided to keep their operations in Philadelphia. They</p><p>bought the second floor and moved their offices from the basement to the second floor. They continue to lease the</p><p>adjacent building. Case Paper currently occupies over 700,000 sq. ft. between the first and second floor of the</p><p>Tioga Street facility and the adjacent E Street Building.</p><p>Because of the KOZ program, Case Paper stayed in Philadelphia preserving 130 jobs. The amount of investment</p><p>totaled several million dollars. No question, we would not have stayed if it would not have been for the KOZ.</p><p>- Robin Schaffer, President of Case Paper</p><p>Tioga Street - Philadelphia, Pennsylvania</p></li><li><p>10</p><p>&gt; &gt; &gt; LACKAWANNA / LUZERNE</p><p>When Tootsie Roll Industries (TRI Sales Co.) needed a home for a new distribution center for the Northeast</p><p>region, they looked to Pennsylvania. Logistically, Pennsylvania was a prime location because of the easy access to</p><p>Interstates 80, 81 and 476, enabling the company to efficiently service the entire Northeast. Pennsylvania</p><p>provided many desirable properties, but the property located in the Hazle Township, Luzerne County Keystone</p><p>Opportunity Zone (KOZ), was the site TRI Sales Co. chose. The tax benefits the KOZ program provides was the</p><p>deciding factor.</p><p>The 19 acre site offered a good standing building consisting of 240,000 sq. ft.; however the interior needed work.</p><p>The KOZ benefits assisted the company in being able to invest $17.5 million into the necessary renovations. When</p><p>TRI Sales, Co. began operations at its PA location in January 2009, they had 6 employees. Today there are 12</p><p>employees. In addition to the location and KOZ tax benefits, the company has been impressed with the workforce</p><p>of Pennsylvania. </p><p>TRI Sales Co. gives back to its community. They support the food bank with donations of their products. They also look</p><p>for other needy causes to support such as the soup kitchen and churches holding events to assist the underprivileged.</p><p>Tootsie Roll has been such an excellent addition to the community. Nancy R. Stasko, Director of Administration with</p><p>CAN DO, Inc. </p><p>TRIs commitment to their community is further demonstrated when Interstate 80 had to be closed during the</p><p>devastating floods from Tropical Storm Lee in September 2011. The state police asked CAN DO, Inc. in Hazelton</p><p>for assistance in finding parking lots for the truckers that were stranded due to the road closure. TRI Sales Co.</p><p>provided assistance beyond that. In addition to providing their parking lot for the truckers, staff stayed overtime</p><p>to allow the building to remain open throughout the night. They provided refreshments, restrooms and a place for</p><p>the truckers and state police to stay during the emergency.</p></li><li><p>PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 11</p><p>&gt; &gt; &gt; JOB CREATION</p><p>Southeast</p><p>Central PA</p><p>0 2,000 4,000 6,000 8,000 10,000 12,000</p><p>Southwest</p><p>Southern Allegenies</p><p>South Central</p><p>Schuykill/Carbon</p><p>Philadelphia</p><p>Northwest</p><p>Northern Tier</p><p>North Central</p><p>Lehigh Valley</p><p>Lackawanna/Luzerne</p><p>Full Time Jobs Created Within KOZs</p><p>I have been in the distribution business for almost 20 years, and I have worked</p><p>with tens of thousands of people all across the country. I have not worked with a</p><p>better group of people than our current team in Hazleton, PA. Additionally, if I</p><p>needed to hire 10 more people today, I could find and hire the same caliber of</p><p>person we currently have employed. Their dedication, work ethic and high</p><p>standards set them apart from all others.</p><p>- Scott Cox, General Manager, Tootsie Roll Industries, LLC.</p><p>DCED defines full-time employment as 37.5 hours with benefits including health coverage and paid leave.</p></li><li><p>12</p><p>&gt; &gt; &gt; LEHIGH VALLEY</p><p>In September 2006, Alvin H. Butz, Inc. relocated their South Whitehall Township headquarters to a new 85,000 sq.</p><p>ft. office and retail space at the southeast corner of 9th and Hamilton Streets in the heart of downtown Allentown.</p><p>The decision to purchase property and build a new $20 million, Class A office building downtown would not have</p><p>been possible without the availability of the KOZ designation. </p><p>The building is 90% occupied with 12 tenants and approximately 150 employees. Other tenants include Discover</p><p>Lehigh Valley, Lehigh Valley Arts Council, Greater Lehigh Valley Chamber of Commerce, Roberson Butz Architects,</p><p>Lee A. Butz offices, Federal Community Defenders Office, Stoudt Financial Services, offices for U.S. Senator Bob</p><p>Casey and Sangria Restaurant and Caf Central. </p><p>The modern six-story structure features a glass-enclosed atrium, fabulous views of South Mountain and downtown</p><p>Allentown and an FAA-approved heliport located on the roof. The building has sustainable features including high-</p><p>efficiency fixtures &amp; valves, minimal exterior lighting, extensive use of daylight and a unique HVAC system.</p><p>Recycled products were also used for the interior. </p><p>While the decision to build the Butz Corporate Center in downtown Allentown was made primarily with the hope of</p><p>benefiting the center city, that decision and the design of the building have made a positive environmental impact</p><p>on a much broader scale. The construction of the building on a previously developed urban site preserves other</p><p>greenfield sites and utilizes existing infrastructure including public transportation options. </p><p>There were 128 relocating companies, resulting in the creation of 721 new jobs.</p><p>Arial &amp; Street View - 9th &amp; Hamilton Streets - Allentown, Pennsylvania</p><p>BEFORE BEFORE</p></li><li><p>PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 13</p><p>The KOZ was a significant factor in</p><p>our decision to move downtown and</p><p>build a space that was three times the</p><p>size of what we needed for our offices,</p><p>says Greg Butz, President and CEO of</p><p>Alvin H. Butz, Inc. We made this</p><p>investment in order to help attract</p><p>others to the downtown, and we feel</p><p>its been successful with the relocation</p><p>of Alfred H. Benesch in our building,</p><p>and some other engineering and architect firms on Hamilton Street. It is an</p><p>investment that wed like to continue with our future plans to build an addition</p><p>to our building, eventually bringing more companies downtown.</p><p>- Greg Butz, President &amp; CEO, Alvin H. Butz, Inc.</p><p>Butz Corporate Center - Allentown, Pennsylvania</p><p>2010</p><p>2009</p><p>2008</p><p>0 1 Billion 2 Billion 3 Billion 4 Billion</p><p>3,724,870,817</p><p>2,877,011,729</p><p>1,785,803,648</p><p>KOZ Capital InvestmentThe capital investment made into KOZ locations throughout the</p><p>commonwealth increased $2 billion from 2008 to 2010.</p><p>AFTER</p></li><li><p>14</p><p>&gt; &gt; &gt; SOUTHWEST</p><p>Allegheny Technologies Incorporated (ATI) is one of the largest and most diversified specialty metals producers</p><p>in the world with revenues of approximately $5.0 billion in 12 months ending September 30, 2011. ATI has</p><p>approximately 11,300 full-time employees world-wide who use innovative technologies to offer growing global</p><p>markets a wide range of specialty metals solutions. </p><p>ATIs major markets are aerospace and defense, chemical process industry/oil and gas, electrical energy, medical,</p><p>automotive, food equipment and appliance, machine and cutting tools, and construction and mining. </p><p>ATIs operating company ATI Allegheny Ludlum has been located in Brackenridge, Pennsylvania since 1938, and is</p><p>a large employer providing good, high paying jobs to many throughout Western Pennsylvania. Over the past few</p><p>years, ATI has made over $200 million in upgrades to their Brackenridge facility....</p></li></ul>


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