Lackawanna County, PA -
Hoping to attract potential developers, Lackawanna County commissioners support extending the tax-exempt status of several undeveloped parcels for an additional seven years.
Wednesday's 2-0 vote by Commissioners Jerry Notarianni and Patrick O'Malley represents the last local step required to extend Keystone Opportunity Zone benefits through Dec. 31, 2024, for about 21.52 acres in Jessup's Valley View Business Park, 8.54 acres in the area of Chestnut, Betty and East streets in Archbald and about 62.19 acres in the Scott Technology Park in Scott Twp. Commissioner Laureen Cummings was not present at the meeting.
KOZ status exempts a property owner from a litany of taxes, including property tax, the business privilege tax and taxes on net profits from business activity conducted within the zone, among others.
While those benefits are set to expire at the end of the year for virtually all of the aforementioned acreage, commissioners joined officials from Jessup, Archbald, Scott Twp. and the Valley View and Lakeland school districts in approving resolutions to extend the KOZ terms. Final approval by the state Department of Community and Economic Development is still required, county General Counsel Donald Frederickson said.
The vast majority of the acreage is owned by the Scranton Lackawanna Industrial Building Co. (SLIBCO) - the Greater Scranton Chamber of Commerce's development arm. Mericle Commercial Real Estate Services owns about 14.58 acres of the affected land at the Valley View Business Park.
Representatives from both entities said Wednesday that extending the tax incentive is integral to attracting developers that will build on the land and bring jobs.
“In today's competitive environment where most development increases jobs, we're not competing with the next town or even the next county, but rather with states across the entire United States,” said Lewis Sebia, Mericle chief operating officer. “When we have a site that doesn't have a KOZ … designation, the site selectors and the brokers that represent these companies … pass and go right to the next state.”
Moreover, the creation of buildings on the land will ultimately bolster the county's tax base and provide revenue “in perpetuity,” Sebia said.
Chamber President Bob Durkin emphasized the job-creation aspect.
“Right now, just up in the Jessup and Archbald parks that are controlled by SLIBCO, in which Mericle also has properties, we've created over 2,200 jobs,” Durkin said. “At the end of the day, I like to say the currency that we run off ... is creating quality jobs for Lackawanna County residents.”
