pennsylvania keystone opportunity services...pennsylvania keystone opportunity zone ... dedicates an

Download PENNSYLVANIA KEYSTONE OPPORTUNITY Services...PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE ... dedicates an

Post on 15-Jun-2018

212 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • PENNSYLVANIA KEYSTONEOPPORTUNITY ZONEGrowing & SustainingPennsylvanias Economy

    An Overview 2008-2010

  • 2 newPA.com

    The Humboldt Industrial Park is located in the north east section of

    the township just north of the Village of Sheppton. The industrial

    park has been generating income for the township through earned

    income tax and local service tax during the years of the KOZ. In 2011

    most of the parcels started paying real estate tax, this increased our

    tax income $63,000.00. This additional income provides more

    services to the taxpayers.

    - Dennis J. Antonelli, East Union Township Supervisor

    Cover Photo: Butz Corporate Center - Allentown, Pennsylvania

  • PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 3

    > > > PROGRAM OVERVIEW

    The Keystone Opportunity Zone (KOZ) Program is one

    of the nations boldest and most innovative economic

    and community development programs.

    > Unique program to develop communitys underutilized land and buildings

    > Promotes business districts and a well-balanced approach to communityrevitalization

    > Consists of 12 zones in 61 counties

    > Covers more than 46,000 acres

    > Local communities designate their own Keystone Opportunity Zones

    > Administered through the Department of Community and Economic Developmentpartnering with Departments of Revenue and Labor and Industry

    > Original Zones expired December 31, 2010 providing host communities withsignificant new tax revenue

  • 4 newPA.com

    WyoTech is located in Blairsville, Indiana County, PA. WyoTech is an automotive school with the goal of supplying

    the industry with above standard entry-level technicians. The Blairsville facility opened in 2002 with Automotive

    and Collision/Refinishing Programs. The facility employs 174 employees.

  • PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 5

    > > > ECONOMIC IMPACT

    Commercial

    Real Estate Development

    Retail

    Financial Services

    Manufacturing

    Transportation & Logic

    48%

    16%

    14%

    4%1% 1%

    16%

    BioScience

    Research & Development

    Manufacturing

    0 2,000 4,000 6,000 8,000 10,000 12,000

    Transportation & Logistic

    Retail

    Real Estate Development

    Information Technology

    Financial Services

    Commercial

    Business Services

    BioScience

    14,000

    KOZ Investment by Industry

    KOZ Job Creation by Industry

  • 6 newPA.com

    > > > SOUTHERN ALLEGHENIES

    The KOZ has had an incredibly positive impact on the community in Bedford Township, Bedford County. Bette

    Slayton, President of the Bedford County Development Association, said it best when she described the

    Omni Bedford Springs Resort as the poster child for the KOZ program. The reopening of the historic hotel has

    spurred the development of the downtown with new businesses, retail stores and restaurants. The Omni Bedford

    Springs Resort was recently rated #8 on the Top Resorts in North America by Travel & Leisure. The November 2011

    issue of Martha Stewart Living Magazine dedicates an 8-page spread on the resort and surrounding area.

    The Bedford Resort Partners undertook a historic restoration of the Omni Bedford Springs Resort. The iconic hotel

    opened over 200 years ago, and was designated a National Historic Landmark in 1984. In 1983, the resort had to

    close its doors due to a flood and again in 1987 due to financial hardships that the hotel could not recover from.

    Few properties can boast the historic significance of the Bedford Springs Resort, located in the Allegheny Mountains

    of south-central Pennsylvania. For more than 200 years, the eight mineral springs located on the resorts property

    served as an important gathering place. Eventually, the resort would be the site of many significant moments in

    American history, hosting a long list of celebrities, wealthy clientele, corporate magnates and dignitaries from

    around the world. To date, the resort has hosted 10 US presidents, seven of whom visited during their presidency.

    Omni Bedford Springs Resort circa 2006

    BEFORE

  • PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 7

    In 2004, the resort embarked upon an unprecedented restoration and expansion effort. The KOZ designation

    allowed for the restoration to be made. In 2007, the Bedford Springs Resort was returned to its original beauty and

    is the perfect blend of the past and the future.

    The total cost of the restoration and expansion was $180 million, an investment made with both private and public

    funds. Currently there are 400 employees at the resort, 270 are employed full time. The KOZ expired at the end of

    2010 and the property is currently on the tax rolls. The resort pays a 2% hotel tax that is now generating $250,000

    a year for the community.

    Omni Bedford Springs Resort

    The KOZ program played a huge role in enabling the hotel to get on its feet.

    Without the KOZ program, the hotel would not have reopened.

    - Scott P. Stuckey, General Manager for Omni Bedford Springs Resort

    AFTER

  • 8 newPA.com

    > > > SCHUYLKILL / CARBON

    In 1995, the Schuylkill Economic Development Corporation, (SEDCO), acquired a 175 acre parcel of land from the

    Schuylkill County Tax Claim Bureau in Tremont Township along State Route 209. The parcel, a former mining

    operation which was both strip mined and deep mined in the early part of the 20th century, was in the possession

    of the county as a result of unpaid property taxes. The property was pock marked with pits filled with illegally

    dumped household garbage and generally overgrown with weeds and brush. It had no access to public sewer or

    water facilities.

    SEDCO invested $66,000 for remediation and preparation of the site. In 1998, they were granted an original KOZ

    designation and rezoned for industrial use. The KOZ designation took effect on January 1, 1999.

    Big Lots/Consolidated Stores worked with the Governors Action Team and signed a purchase agreement with

    SEDCO in June 1999. As part of the negotiation, the company promised 300 jobs and a capital expenditure of $25

    million. They constructed a 1.3 million sq. ft. building which now employs 438 people in a very rural section of

    Schuylkill County. Property value went from $0 in 1995 to $29,183,620 in 2011 when the KOZ expired.

    The building represents the largest structure in Schuylkill County; its construction increased the assessed value of

    all properties in Tremont Township by 359% from $5,237,120 before Big Lots to $9,828,930 after Big Lots KOZ

    expired in 2010. More people work at the distribution center than live in all Tremont Township (250).

    Big Lots/Consolidated Stores - Tremont Township

  • PENNSYLVANIA KEYSTONE OPPORTUNITY ZONE 9

    > > > PHILADELPHIA

    Case Paper is one of the largest, if not the largest, paper merchant/converter in the United States. Headquartered

    in New York, the company has offices in 7 major U.S. cities, including Philadelphia, and an office in Toronto.

    Case Paper moved into its Philadelphia location in 1988 and occupied the basement and first floors of an old condo

    building on Tioga Street. Case Paper also rented a portion of the adjacent building, known as the E Street

    Building. In 1997, the company was looking to create a facility to combine its Long Island/Queens office with the

    Philadelphia office. Originally, Case Paper was working with a neighboring county at a specific brownfield site.

    The site had some contamination and engineering problems they were trying to work through.

    Meanwhile, the Tioga Street area in Philadelphia was becoming increasingly undesirable, with more and more

    businesses shutting their doors and abandoning the area. Around this same time, the enacting KOZ legislation was

    being finalized and Philadelphia officials recognized the importance of including the Tioga Street location as a

    designated KOZ in an attempt to avoid complete deterioration of the area.

    Upon learning of the approved KOZ designation, Case Paper decided to keep their operations in Philadelphia. They

    bought the second floor and moved their offices from the basement to the second floor. They continue to lease the

    adjacent building. Case Paper currently occupies over 700,000 sq. ft. between the first and second floor of the

    Tioga Street facility and the adjacent E Street Building.

    Because of the KOZ program, Case Paper stayed in Philadelphia preserving 130 jobs. The amount of investment

    totaled several million dollars. No question, we would not have stayed if it would not have been for the KOZ.

    - Robin Schaffer, President of Case Paper

    Tioga Street - Philadelphia, Pennsylvania

  • 10 newPA.com

    > > > LACKAWANNA / LUZERNE

    When Tootsie Roll Industries (TRI Sales Co.) needed a home for a new distribution center for the Northeast

    region, they looked to Pennsylvania. Logistically, Pennsylvania was a prime location because of the easy access to

    Interstates 80, 81 and 476, enabling the company to efficiently service the entire Northeast. Pennsylvania

    provided many desirable properties, but the property located in the Hazle Township, Luzerne County Keystone

    Opportunity Zone (KOZ), was the site TRI Sales Co. chose. The tax benefits the KOZ program provides was the

    deciding factor.

    The 19 acre site offered a good standing building consisting of 240,000 sq. f

Recommended

View more >