Wednesday, January 26, 2000
Power substation is opposed
Dear Editor:
Wake up Springhill Township. We are going to become a dumping ground for what the rest of the county doesn't want. Fayette County government has no inclination to be the watch dog for the tax payers and voters. We already have a 100-foot plus cell tower; the OK was given for a 24-hour trucking distribution center that never transpired, and now the planned electrical substation located on the former ``shooting range.''
How very typical of Fayette County operations — sneak it in the back door then cram it down their throats kind of government. In any other area there would have been well-publicized meetings to inform residents about the possibility of this being in their backyards.
This is not a small project. This is a major industrial development that could be zoned heavy industrial in a very rural area.
The Herald-Standard noted that no one came to a meeting at the courthouse concerning this possible development. The reason is no one knew. These meetings are always held at a time when most tax-paying, employed citizens cannot attend.
The meeting to consider this exception will be held 10:15 a.m. today (Wednesday), in the third-floor commissioner's room at the courthouse.
This is a huge project with industrial emissions, potential air pollution and massive oil tanks, not to mention an eyesore. There will be towers 75 feet tall.
The project, by the way, will bring zero permanent jobs to the area except for possibly two or three security positions since it is an unmanned station.
This $40 million project will sit on 36 tax-free acres, called the Keystone Opportunity Zone. The residents of the township were led to believe that these areas were created to entice businesses to this region to create employment opportunities. This is poor use of the opportunity zone.
While Allegheny Power pays no taxes on this substation, our taxes will be increased, and it offers little to no chance of employment.
What kind of precedent will the county be setting to allow this kind of special exception in a rural area? What kind of further development will this entice? What about the present residents and the future real estate (values) in the area? Who wants to look at the countryside and see emission stacks and bellowing clouds of smoke?
For this kind of development to be dropped out of thin air into an unsuspecting rural area is an abomination.
What chance does a rural area have when only numbers count in fighting for our rights? It is a losing battle in Fayette County.
Where are our elected officials? Aren't they supposed to represent and keep informed their voting constituents? Or are they only there to please big business? What happened to the American way, where an individual has a voice that is heard?
Springhill Township is a potential hot seat for continued development — both good and bad. The residents need to stay informed and get involved.
Paul M. Dunham Gans
At a special meeting to consider adoption of a preliminary budget for Fayette County, a segment of the meeting included a presentation by Fay-Penn Economic Development Council to the commissioners on the application and resolution for Fayette's inclusion in a regional KEYSTONE OPPORTUNITY ZONE (KOZ).
Seven months after Gov. Ridge’s visit to Pittsburgh, a meeting was held at Penn
State Fayette campus with a number of economic development specialists and
elected officials in attendance. According to a Herald-Standard August 2
article, “KOZ = Opportunity Knocking,” featured speaker was David Kerr, an
executive assistant in the office of the Deputy Secretary for Community Affairs
and Development, PA Department of Community and Economic Development.
Ridge said the zones are a solution to urban blight and abandoned properties,
designed to encourage homeowners and employers to locate in these areas,
raise families, create jobs, and renew the community.
“Government has tried numerous will-intentioned spending programs to help
these neighborhoods, but they haven’t worked,” Ridge said. Neither the state nor
local governments will lose much revenue because the communities now do not
have much economic value to tax, he said.
McMullin was contacted for this report. The Allegheny Institute “is in full
support of the KOZ legislation passed by the General Assembly and signed by the
Governor,” McMullin stated to queries about his study.
Notable posits by McMullin according to the T-R article/editorial:
“If growth occurs in the KOZ as projected, the non-taxpaying occupants would
absolutely be devouring public services in their respective community that they
wouldn’t be paying for: there must be some provisions made to local
governments (especially school districts) expected to provide vital services but
having a severely restricted tax base to do so, Mr. McMullin finds.”
“The marketability of businesses within a KOZ would be phenomenal. But with the
cold-turkey approach of at year 12 paying no taxes but in year 13 paying 100%
taxes, that marketability could easily suffer. Some businesses, in fact, might
very well leave the KOZ and seek tax breaks elsewhere. McMullin finds that
scenario a classic argument for a phased-in restoration of the full tax
liability.”
FOLLOW THE SAGA
Fay-Penn's PromoSite
QUESTION THE AMENDMENT TO THE ORIGINAL RESOLUTION ADOPTED DECEMBER 10, 1998 A FULL THREE MONTHS AFTER STATE APPLICATION DEADLINE OF DECEMBER 31, 1998
The deadline for an application to the state
WAS December 31, 1998 while sites were then designated in February, 1999. The Amendment to the original resolution was passed UNANIMOUSLY by the county commissioners on March 25, 1999.
WHAT HAPPENED LOCALLY?
By their unanimous adoption of the KOZ application and resolution on Dec. 10, 1998, the county commissioners waived a number of taxes on the KOZ properties which have been since been publicly announced to total 5,600 acres. One of the taxes waived locally is real property taxes.WHEN DID THE COMMISSIONERS RECEIVE THE LETTER FROM FAY-PENN?
Dated November 25, 1998
Dear Commissioner Vicites:
We have been very busy in the last two months working on a Keystone Opportunity zone (KOZ) application for Fayette County. This is a competitive process and only 12 KOZs of the expected 20 applications will be designated in the State.
Enclosed is information on the KOZ program for your review. It is the single most important economic development issue facing Fayette County. One of the documents is a study conducted by the Allegheny Institute, which indicates that the most likely scenario could result in over $700 million in new capital investment and 16,000 new jobs over a 12-year period should Fayette and Greene counties receive the KOZ designation.
To be eligible for the KOZ designation from the Commonwealth, each local taxing body must be willing to invest in the program to partner with the State in the form of local real estate tax abatements. Resolutions for the designation on specific properties have been reviewed by many township supervisors, school board members and all of the solicitors representing the following governing bodies, who have each passed an appropriate resolution:
Enclosed is a copy of the resolution that lists the various properties. It is imperative that the County passes a resolution at the next Commissioners' Meeting so that it can be included in the application prior to the deadline of December 31, 1998. A copy of the enclosures, along with the resolution, has been forwarded to Joe Ferens, the county solicitor for his review.
We look forward to seeing you on December 8 to answer any questions you may have about the program and on December 10 at the Commissioners' Meeting. Hopefully, in working together, we will be successful in receiving the designation for Fayette County. If you should have any questions in the meantime, please do not hesitate to call.
THE LETTER IS SIGNED BY MICHAEL W. KRAJOVIC
WHAT DID FAY-PENN SEND TO THE STATE? ASK YOUR LOCAL LEGISLATOR TO PROVIDE YOU A COPY OF THE ORIGINAL FAY-PENN KOZ APPLICATION.
A total of 12 zones can receive the KOZ designation statewide. In each zone
designated, there can be a total of 12 subzones. The subzones have a minimum
requirement of 20 acres, while the maximum for the combined subzones can’t
exceed 5,000 acres.
It is reported that Fayette KOZs now total 5,600 acres. All tax-free zones, whether privately-held or publicly-held. If Fayette has 5,600 acres in the KOZ, how is that legal, given the KOZ legislation's requirement that a subzone maximimum acreage can't exceed 5,000 acres?
MORE BACKGROUND
In Pittsburgh, at the end of January, 1998, Governor Tom Ridge spoke about his
economic development proposal called Keystone Opportunity Zones. According
to a Tribune-Review editorial on January 20, “No-Tax Zones,” the proposal to
eliminate all taxes for businesses and residents in the zones is an intriguing
idea to spur economic development. “On the surface,” the Tribune states, “we like
the proposal.” The program would be open only to new enterprise, effectively
preventing exploitation of the zones by established businesses.
Different versions of the legislation to create KOZes had been passed in the
House and Senate at the end of June when the General Assembly recessed.
On Tuesday, October 6, Gov. Ridge signed the bill allowing for the creation of 12
KOZes statewide. A next day AP article notes Gov. Ridge’s comments.
"I will be proud to sign this bill into law." Gov. Ridge noted the tireless efforts of Rep. Joseph M. Gladeck Jr. (R-Montgomery), the bill's prime sponsor; Rep. Roy Reinard (R-Bucks), Chairman of the House Local Government Committee; and Sen. Melissa A. Hart (R-Allegheny), Chairman of the Senate Finance Committee.
Keystone Opportunity Zones are defined geographic areas where state and local governments partner to eliminate taxes on employers and residents to stimulate job creation and private investment where it's needed most.
ASK THE ABOVE HOW KOZ IS CONSTITUTIONAL?
Public statements :DIRT founder asks about KOZ
WHO SUPPORTED KOZ
A September 11 Tribune-Review editorial, “KOZ and effect,” references
Allegheny Institute for Public Policy analyst Andrew McMullin’s study of the KOZ
proposal before its final passage. McMullin raised pertinent questions about
KOZ, and made recommendations to the state legislators.
