City Revitalization and Improvement Zone

Pennsylvania Department of Community and Economic Development

Program Type:

Tax Incentive

Eligible Geography:

Pennsylvania

Summary:

The City Revitilization and Improvement Zone keeps state and local taxes within the CRIZ and distributes the collected funds towards economic development and improvement programs in that zone. Its objective is to provide opportunity to spur new growth in cities that have struggled to attract development helping to revive downtowns and create jobs for the residents in the regions.

As a result of the CRIZ, vacant, desolate, underutilized or abandoned space will be developed, thereby creating jobs, increasing personal incomes, growing state and local tax revenues, reviving local economies and improving the lives of city residents and visitors. Bonds will be issued by the contracting authority. Various State and Local Tax Revenues created in the zone will be then used to pay off the bonds.

Eligible Recipients:

Local Government

Eligible Recipients Detail:

A city with a population of at least 30,000 based upon the most recent federal decennial census designated as distressed that is not located in a home rule county. A home rule county where a city with a population of at least 30,000 based upon the most recent federal decennial census designated as distressed. A city of the third class with a population of at least 30,000 based upon the most recent federal decennial census, so long as the city has not had a receiver appointed under Chapter 7 of the Act of July 10, 1987 (P.L. 246, No. 47). The CRIZ Program also permits one pilot zone to be designated. A pilot zone is an area of not more than 130 acres designated by a contracting authority within a township or borough with a population of at least 7,000 based on the most recent federal decennial census.

Eligible Purpose:

General Infrastructure; Last Mile Connectivity; Building Connectivity

Eligible Purpose Detail:

Funds may only be used for the following:

-Payment of debt service on bonds issued for the construction, including related infrastructure and site preparation, reconstruction or renovation of a facility in the zone.
-Construction, including related infrastructure and site preparation, reconstruction or renovation of all or a part of a facility.
-Replenishment of amounts in debt service reserve funds established to pay debt service on bonds.
-Employment of an independent auditing firm to perform required duties on behalf of the contracting authority.
-Improvement or development of all or part of a zone.
-Improvement projects including fixtures and equipment for a facility owned by a public authority.

Other Eligibility Criteria:

A CRIZ may not include any of the following unless and until these special zones are decertified: Keystone Opportunity Zones (KOZs), Keystone Opportunity Expansion Zones (KOEZs), Keystone Opportunity Improvement Zones (KOIZs)[Opportunity Zones, collectively] or Strategic Development Areas (SDAs). A CRIZ may not include Keystone Special Development Zones (KSDZs) or Keystone Innovations Zones (KIZs) unless and until modifications to the geographical boundaries are made to the KSDZ or KIZ.

Funding Match/Terms:

The amount of money transferred from a City Revitalization and Improvement Zone Fund must be matched by private money at a ratio of five City Revitalization and Improvement Zone Fund dollars to one private dollar.