The Allentown Neighborhood Improvement Zone Development Authority said today it took in more than $32 million in its first full year of tax revenue and has allocated funds to pay bond debt service on the PPL Center hockey arena and other developments.
The authority was able to pay this year’s net arena bond debt service of almost $10.4 million and also fund about $5 million of required surplus to protect arena bondholders, according Sara Hailstone, acting executive director of the authority and also Allentown’s director of community and economic development.
Hailstone also said the authority made debt payments for multiple projects by Center City Investment Corp. within the zone. City Center Investment Corp. is owned by developer J.B. Reilly, and is building several office, residential and mixed-use buildings collectively known as City Center Lehigh Valley.
The neighborhood improvement zone is a 127.3-acre special tax district that diverts state and local non-property taxes into downtown Allentown development. It has spurred a construction boom downtown, including Reilly's projects, new development at the Alvin Butz and Co. headquarters and renovation of some older buildings along Hamilton Street.
“ANIZDA continues to hear from more and more private developers and businesses that are interested in investing in the NIZ,” Hailstone said. “The revitalization of downtown Allentown continues to gain momentum.”
Additional tax revenue amounts returned to the state, city, and Allentown School District from businesses within the zone will be determined within the next six months during a mandatory reconciliation required under the NIZ Act, according to a news release.
The legislation creating the zone was authored by state Sen. Pat Browne, R-Lehigh and Northampton.
Seymour Traub, chairman of the zone authority's board, said revenues from the zone will only get higher.
“ANIZDA expects that the tax revenues generated from the NIZ will be greater in 2013 as the greater portion of construction of the arena occurs, and existing businesses grow from the benefits of the new downtown activity,” Traub said.
Under the law, business owners within the zone don’t pay extra taxes, but they are required to file forms with the city and state annually each January 30th to avoid a penalty. The forms are used to report the taxes that businesses in the zone already pay and report to state and local taxing bodies.
The authority's board oversees and approves projects within the zone, and also hired consultants to help businesses file their tax forms correctly.
Source: lehighvalleylive.com
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