Meet NIZ’s stepbrother, CRIZ
You would be hard pressed to find a Lehigh Valley resident who wasn’t familiar with the Neighborhood Improvement Zone (NIZ) in Allentown that has attracted hordes of new businesses, including a hockey arena that will house the minor league affiliate of the Philadelphia Flyers. But there may be a new ‘IZ coming to town.
Community Revitalization and Improvement Zones are now a new Pennsylvania incentive plan to provide a boost in the redevelopment of the state’s smaller cities, but there are only a few that are eligible. CRIZs are only available to third-class cities with populations of 30,000 or greater, and no more than two are awarded the designation in each fiscal year. These guidelines leave only 8 eligible cities: Erie, Reading, Lancaster, Bethlehem, Altoona, Wilkes-Barre, Chester and York. Unfortunately, our friends over in Easton fall just short of the population requirement.
A CRIZ can cover up to 130 acres of land, and isn’t quite as attractive as NIZ, but still provides business incentives. The NIZ allows companies to redirect all taxes earned in the zone to go to financing it, while CRIZ only redirects taxes in this way after a certain threshold amount. Private investment must also equal 20 percent of the tax redirection funds, or one private dollar for every public five.
The Pennsylvania Department of Community and Economic Development will determine which cities will receive CRIZ designation based on applications with a specific economic development plan for the acreage within the city. Bethlehem is eligible for such a district and will definitely apply for the designation, with several project options. One of the most popular choices since talk of the CRIZ emerged is Martin Tower, the high rise building in West Bethlehem that has been vacant for six years but the south side of Bethlehem could also provide project options in its abandoned or underutilized structures.
We wish Bethlehem luck in their application for a CRIZ! Remember in our last post we promised a workshop in The Lehigh Valley Summit for Smart Growth focused on Act 111 and Act 47? We will also be hosting a workshop during the conference that looks at the NIZ and what it’s done for Allentown with a panel of developers and city panels. Again, stay tuned for details on how you can register for the smart growth conference!
Posted on July 29, 2013, in Uncategorized and tagged Allentown, bethlehem, community revitalization improvement zone, criz, Easton, martin tower, neighborhood improvement zone, niz, Pennsylvania, third class city. Bookmark the permalink. Leave a comment.