Directors to mull KOZs

By Karen Blackledge
The Daily Item

October 24, 2008 08:07 am

— DANVILLE -- The Danville Area School District stands to lose more than $160,000 over 10 years in tax revenue if it approves a company's request for a Keystone Opportunity Zone designation Tuesday night.
However, a KOZ designation would help MBC Development Corp. fill the vacant TRW property in Danville, which would create jobs, help the housing market and broaden the tax base, Montour County commissioners say.
Officials from MBC in Danville and Cherokee Pharmaceuticals in Riverside will petition the board for KOZ designations during the meeting. Both would also need the approval of Danville and Riverside boroughs, respectively, in their bids, which could make them exempt from paying state taxes for 10 years.
Current real estate taxes levied on the TRW complex that has been completely refurbished are $16,165 to the Danville Area School District, $5,364 to Montour County and $3,934 to Danville borough, according to the county assessor's office.
Current real estate taxes levied on Cherokee Pharmaceuticals were unavailable Thursday.
Cherokee officials will make their pitch to Riverside borough Council officials Monday night; MBC will meet with Danville Borough Council at a later date.
Jim Miller, one of MBC's owners, could not be reached for further comment Thursday.
The Montour County commissioners expect to attend the school board meeting after they conclude their meeting on the same night, Vice Chairman Jack Gerst said Thursday.
"We want to make this tax neutral," Gerst said. "I don't want to put anything on the taxpayers."
No word on steel mill
This week, Commissioner Jerry Ward said a steel company was interested in the site, but Miller said Wednesday that company hasn't called back.
Commissioners Chairman Trevor Finn said MBC would pay property taxes if the site wasn't occupied, as has Metso Minerals in Danville, which has a KOZ designation but hasn't filled the property.
"There will not be an immediate loss," Finn said.
The commissioners have been trying very hard to fill the former TRW property, Finn said.
"Local tax dollars garnished far outweigh 200 to 300 jobs there," Finn said. "People working there would be moving to the area, buying houses and paying taxes."
With at least one school board member questioning why the commissioners are working on the KOZ projects, Finn said the commissioners are charged with economic development.
Just as the school district asked for help in reducing its truancy problem, Finn said the commissioners are asking to allow a KOZ in the school district.
"Competition is so fierce right now with the market the way it is," Finn said. "We need to give every business every opportunity we can."
Pols back KOZ efforts
Commissioners also support the KOZ proposed by Cherokee Pharmaceuticals in Riverside, Finn said.
"Those types of jobs that are created will spill over to Montour County. There's less than a mile between us," he said of the Cherokee location in Northumberland County.
Cherokee officials have offered to pay Northumberland County $811,000 between 2009 and 2018 as part of a financial support agreement for a KOZ designation. This is for 178 acres for development and not related to Cherokee's current expansion, public affairs manager Betse Humphrey said Thursday.
She would not disclose offers to be made to Riverside borough and the school district, saying they would be announced later.
Cherokee's KOZ designation would require an ordinance by Northumberland County, and a financial support agreement with Riverside Borough and the Danville school district, she said.
"We are making sure we support the community and want to make this a win-win for everyone," she said.
Riverside's tax collector could not be reached for comment Thursday.
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