New tax incentives could spur economic growth on underused
and blighted properties in Easton, Wilson Borough and Allentown as 18 sites in
these municipalities earned Keystone Opportunity Expansion Zone status from the
state. The KOEZ offers a 10-year abatement of taxes for residential properties
and a 10-year abatement of state and corporate income taxes for businesses that
locate in a zone.
The Pennsylvania Department of Community and Economic
Development approved the properties for the program administered by Lehigh
Valley Economic Development Corp. LVEDC submitted a regional application to the
state on behalf of Northampton and Lehigh counties, local governments and
school districts.
"We're one of the few regions that coordinates our
application to the state, which I think works in our favor," said Don
Cunningham, president and CEO of LVEDC. "For the most part, these are all
properties that have some difficulty in [getting developed], so the tax
incentives level the playing field."
The designated parcels are eligible for benefits from the
KOEZ program for a period of 10 years starting Jan. 1 and expiring at the end
of 2023. Seventeen of the 18 approved parcels are in Northampton County.
With the lion's share of approved sites in Easton,
redevelopment opportunities abound.
"It gives all of our major projects a higher rate of
success for the projects that already started," Easton Mayor Sal Panto
said.
These projects include the Easton Intermodal and City Hall
project, which recently began construction. Now, Panto said, the city should be
able to attract more private tenants to the new city hall building. The
designation also could encourage more businesses to locate in the Easton Silk
Mill, a mixed-used project underway near the 13th Street exit off Route 22 that
obtained KOEZ approval. Another abandoned mill, the Black Diamond Silk Mill on
the city's South Side, also got approval.
Panto said this property is blighted and not capable of
restoration. He would like to see it demolished and used for residential
purposes.
"The KOEZ gives us a golden opportunity to select a
developer to take advantage of that," Panto said.
Other approved locations in Easton include the Governor Wolf
Building, which will be redeveloped as a mixed-use project, and properties on
North Second Street, 118 and 120 Northampton St. and several others, including
the former Dixie Cup building in nearby Wilson Borough.
Joseph Reibman, a co-owner and manager of the Dixie Cup
building, said he is working to obtain the financing needed to make the
redevelopment happen. Reibman has been trying to redevelop the underused site
near the 25th Street exit off Route 22 into new apartments and potential office
space for an estimated $55 million project called "Dixie Lofts."
"The KOEZ helps it because it's an incitement to
tenants to come into the building," Reibman said. "The plan would be
to have a financial closing in late first quarter and start construction."
The state approved all 18 properties requested in the
application. The sole Lehigh County property is the Allentown Metal Works
property in Allentown, which is owned by the Allentown Commercial and Industrial
Development Authority.
"We look at that site as an opportunity to reintroduce
manufacturing jobs back to the city that are accessible to city
residents," said Michael Hefele, the city's planning director. "It's
a rather large site; it has its challenges but it has its opportunities as
well."
After Jan. 1, the city will begin a total reuse study to
determine the best use of the site. Hefele said he envisions light
manufacturing at the 17-acre site, which includes several buildings.
Cunningham said the Metal Works property has a lot of
potential for small to mid-size manufacturing. With side rail access and
30-foot high ceilings, there are few industrial sites in the Lehigh Valley that
can accommodate that type of user, he added.
Source: LVB.com
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