The Herald, Sharon, Pa.

Local News

December 4, 2008

Council mulls KOZ label for Trinity site

Mayor: Don’t apply, not worth it

By Monica Pryts

GREENVILLE — Greenville council members are still weighing the pros and cons of applying for the Trinity Industries site to be considered for Keystone Opportunity Zone designation.

Greenville Mayor Richard H. Miller on Thursday encouraged council to vote against the application submission at Tuesday’s regular meeting because an approval would mean a significant decrease in tax revenues for the borough for 10 years.

Businesses in KOZ areas are exempt from most state and local taxes, including earned income and property taxes, which Greenville heavily relies on because of its status as an Act 47 financially distressed community.

If approved by the state, the KOZ designation wouldn’t be an outstanding deal because of the loss of taxes, but Greenville could get lucky and attract a number of new businesses to the empty site, council member David Henderson said.

Council member Brian Shipley, who with Henderson and Alfred “Skip” Peden formed a committee to study the issue, said Greenville can negotiate with developers on KOZ land to make payments in lieu of taxes.

The committee is in favor of submitting the application because of the overall long-term benefits for new business opportunities, Shipley said.

Council vice president Pamela Auchter said she’s concerned if Trinity, which still owns the site of its former railcar plant, would redevelop the land themselves if it’s designated a KOZ, preventing other businesses from coming to town.

Council will vote Tuesday on whether they want to submit an application for KOZ designation. If they approve it, Mercer County Commissioners and Greenville school board members must also vote to send the application.

Recent state legislation allows for 15 new properties to become KOZ sites. Seven sites have already been approved for designation, which would begin Jan. 1, 2010, and expire Dec. 31, 2019.

Shane Rosenfelder of Penn-Northwest Development Corp. in November urged council to submit Trinity’s KOZ application to the state because the program is an important tool for redeveloping the site.

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