Scranton council approves 7 tax break extensions, turns away 14
Published: June 24, 2009
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Seven developers were approved for extended tax breaks Tuesday by Scranton City Council, where the majority of lawmakers said the abatements could help bring needed business to long-vacant properties.
In the culmination of a month of hand-wringing and argument over Keystone Opportunity Zones, council also voted to reject 14 other tax exemptions.
All eyes will now turn to the Scranton School Board, which would also need to approve any KOZ renewal before Tuesday's deadline. School directors will hold an informational meeting today at 4:30 p.m. at Scranton High School to discuss the seven KOZs that made the cut, but it is unclear when, if ever, the board may schedule a final vote.
Efforts were unsuccessful to reach several directors, including Board President Tom Gilbride. The board majority members are among those who have criticized KOZs as a failed program that burdens the tax base. Director Chris Phillips said he would be hard pressed to change his mind but looks forward to today's public forum.
City Council President Bob McGoff said his criteria for approval were whether there are plans for the land and how the KOZ would benefit the community with a seven-year extension.
"We did our due diligence," he said.
An extension was granted most notably to the Mount Pleasant Corporate Center, a $27 million project of the Greater Scranton Chamber of Commerce. Abatements were also passed for Ice Box developer Bob Burke, Donald Rinaldi of the "Renaissance at 500" project on Lackawanna Avenue, Michael Kelly of the Green Ridge Health Care Center, Dominick and Carl Scartelli, and Village at Tripp Park property owners Roger Leonard and Brian and Kris Kizer.
Two other companies with residential property in Tripp Park were denied extensions, as was the realty group that owns the former Daron Northeast site on Dickson Avenue in Green Ridge. Businessman Louis DeNaples had sought renewed KOZs on more than 100 acres among six parcels, but council unanimously rejected his requests, citing a lack of plans for the land.
Councilwoman Janet Evans voted against all 21 extensions, calling KOZs "corporate welfare." She derided the Mount Pleasant project for the unnamed potential tenants making threats to go elsewhere. She said Mr. Rinaldi was already "gifted" public funds and the Scartelli family had its chance.
"The time to build was during the last 10 years," she said.
But Mrs. Evans was in the minority. Councilwoman Sherry Nealon Fanucci called it "ridiculous" to chase away investors willing to spend millions in the city and create jobs. Councilwoman Judy Gatelli was a skeptic of KOZs but said the city needs to be competitive with other regions and states.
"If we don't offer tax incentives to the businesses that are out there, we're not going to get them," she said.
Councilman Bill Courtright voted down most of the requests but approved Mr. Rinaldi for 510-512 Lackawanna Ave. because he said he feared the downtown block's revival would suffer without a KOZ advantage.
Contact the writer: jburton@timesshamrock.com
40 posted comments
First there was an issue with the American Flag position. It was moved back to regular position not to cause any problems. Whew, thank God.Austin Burke was there to speak about the importance of the Mt Pleasant Professional Plaza asking for KOZ status. I agreed with him. The Doomers don’t agree with him (surprise, surprise). He explained with the economy the way it is (brutal), bringing construction jobs and medical and IT jobs is imperative. Has anyone driven near that site? It looks impressive. Much better than the eyesore located there before the project started. Sam P was up next. He only addressed Mrs. Evans and Mr. Cawright. He doesn’t like KOZ’s. He wasn’t wearing a funky hat or Doo rag on this week. Nancy K was there. She’s against KOZ because of the tax increase of 2005 and because of the fees charged by NCC. Nancy, there are 30 different states who offer the KOZ’s. We have to compete with them. Also, there have been people (a lot of them) who haven’t paid their property taxes for years and years yet she seems to think that we should be gentle with them when trying to get the money. Tom U was next boxer in the ring. He’s been paying taxes for over 50 years. Maybe we can have a Tax payer’s Golden anniversy party for him. Tom, my grandmother has been paying taxes for 65 years and she is all for the KOZ’s (for the most part).Dobbers was up next. I was bored. But I did see him wondering around town. Maybe he should apply for a job at the Parking authority. He could hand out parking tickets and help create even more revenue for the city. Brett, “the Taxpayer” Mcloe was up next. He explained how intelligent his children are. He didn’t even shed a tear when telling his story. He was against KOZ’s. Sherry then asked him if he works for an establishment that has KOZ status. He said he does but that business needs employees. Hmmmmm, He sounds like a Hypocrite. Billy “Bad Boy” Bradigan was next. He still wants to start the Legion of Hope. Not a bad idea William.Joe “the silent majority guy” was next. Joe you are a silent Doomer, let’s get that straight!!!. The Doomers haven’t been silent for the Last eight plus years. This just happens to be the first time you spoke. Maybe he has Direct TV and doesn’t watch council meetings every Tuesday. Fayk Franus was there. She started on Judy again. Fay only has 10.00 bucks left in her pocket til her next retirement check arrives. Sounds to me that she didn’t plan very well her retirement years back when she should have. Now, she blames council. Mr. Rinaldi was next and explained that over a 7 year KOZ plan, the 500 block project would only save 28,000 dollars but generate hundreds of thousands of dollars back into Scranton’s economy. Folks, this man has re-faced this block and has done a great job. He deserves the KOZ status. Jeannie from lower Green Ridge was there. She mentioned Coney Island re-opening. I will tell ya, they are the Best Heart-Stoppers in the city (Since Moby dick was a minnow). Marie S, member of the unbiased Scranton Tax payer’s asso, was next. Anti KOZ. Need I say more? For the record, Janet Evans was against all KOZ’s and progress for the city. Remember that folks. She was also Tardy for the meeting. It was a pretty uneventful meeting this week. Missing from the circus was , OZZIE, Jacko, Ray L, Andy, The Skunk Lady and her Son, The Scranton Police Officer, and a handful of other clowns. See ya next week folks.