The Keystone Opportunity Zone program appears to be in
jeopardy after the Governor's Office rejected multiple KOZ applications –
including one from Philadelphia – as the state struggles with its budget.
Philadelphia sought a KOZ designation for more than 80
properties around the city, aiming to entice developers to challenging parcels
through the program's tax breaks.
But the Wolf Administration rejected the application, and
others, with a spokesman for the governor telling Philly.com the
decision was simple.
"This is about money," Wolf spokesman Jeff Sheridan said last week, "and the state
is strapped."
The sweeping rejections, paired with the state's
difficulties shoring up additional funding, are just one signal the KOZ program
could be on the way out.
The Philly.com report also noted Scott D. Dunkelberger, deputy secretary for
business financing at the state Department of Community and Economic
Development, said major changes to Pennsylvania's tax structure are needed
before "special tax treatment" would apply to additional properties.
The city, familiar with the difficulties faced when
raising funds, will now have to get even more creative in its attempts to draw
developers to the nearly 330 acres in Philadelphia.
Source: Philadelphia
Business Journal
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