Better look at KOZ plans
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share thisScranton City Council conducted a calm, professional public hearing Monday that directly examined the needs of a group of developers, who want tax exemptions, and the potential value of their projects to the local economy.
It marked an encouraging end to a recent period in which developers and public officials had been talking past one another.
At issue is an extension of the state-authorized Keystone Opportunity Zone program, which waives all local and state taxes for certain properties as an incentive for development.
Developers say they need the exemptions to be competitive in trying to lure businesses that usually are offered such incentives in other communities.
Public officials worry that the exemptions too heavily reward new businesses at the expense of established businesses that pay taxes, and that there are no guarantees attached to KOZ approvals.
In a recent letter to the editor, for example, School Board President Thomas Gilbride raised the possibility that a potential tenant for one site seeking a KOZ approval is an existing Scranton business that pays taxes. Clearly, KOZ approvals should be to help establish new businesses rather than to put existing local businesses at a competitive disadvantage with new developments.
Some KOZ projects inevitably fall into gray areas. There is no way to eliminate all risk. But there some fundamental principles that public officials can use to help ensure their success. The exemptions should be used to further developments that likely could not occur otherwise. They should not draw business tenants from existing landlords. And, there should be a strong prospect that the property one day will be on the tax rolls.
In any case, city council raised the level of discourse surrounding the projects Monday, setting the tone for votes tonight on the individual projects, and for another hearing to be conducted Wednesday by the Scranton School District.
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