PA Enterprise Zone Grants to Create Jobs and Support Community Redev

[cpro <cpro@igc.org>]

Tuesday February 10, 10:23 am Eastern Time
Company Press Release
SOURCE: Pennsylvania Department of Community and Economic Development

Ridge Administration Announces Funding For Enterprise Zones;
$650,000 in Grants to Create Jobs and Support Community-Redevelopment 
Projects In Six Counties Across Pennsylvania

HARRISBURG, Pa., Feb. 10 /PRNewswire/ -- On behalf of Pennsylvania Gov. 
Tom Ridge, Community and Economic Development Secretary Samuel A. 
McCullough today announced the approval of $650,000 in grants for 
Enterprise Zone projects in Allegheny, Bradford, Chester, Erie, Lawrence 
and Venango counties. 

``Through the Enterprise Zone Program, the Ridge Administration helps 
attract private investment to create jobs in communities statewide, 
strengthening Pennsylvania's economic foundation and ensuring the promise 
of the New Pennsylvania,'' McCullough said. 

Allegheny County 

The Urban Redevelopment Authority of Pittsburgh was awarded two grants 
totaling $200,000. 

A $150,000 grant was awarded on behalf of Pittsburgh's Lawrenceville 
Enterprise Zone for demolition and cleanup of deteriorated industrial and 
office buildings at the former Lectromelt site. Because of its location 
near the Carnegie-Mellon University NASA Robotics Engineering Consortium 
(REC), which opened in 1996, a number of firms and private developers 
have expressed interest in the 6.7-acre tract. The REC has facilitated 
the creation of a number of high-tech spin-off companies locating in the 
nearby Enterprise Zone. 

Also, a $50,000 grant was awarded on behalf of the city's North Side 
Enterprise Zone to continue implementing its business-development 
strategy, conduct business surveys and provide technical assistance to 
employers located within the zone. 

Bradford County 

Towanda Borough was awarded a $50,000 grant on behalf of the Central 
Bradford Area Enterprise Zone for technical assistance and consulting 
services for firms located within the zone. 

Chester County 

Chester County was awarded a $50,000 grant on behalf of the Coatesville 
Area Enterprise Zone, comprised of the City of Coatesville, Modena and 
South Coatesville boroughs, and Valley Township. The grant will be used 
to fund an annual business survey of firms located within the zone, for 
technical assistance and to assist with other administrative functions. 

Erie County 

The City of Erie was awarded a $250,000 grant to be loaned to Iroquois 
Tool Systems Inc. for the purchase of two computerized 
numerical-controlled (CNC) lathes, a CNC drill, and a brake-surface 
finisher and stamper. The automotive-parts manufacturer is investing more 
than $2.3 million in an expansion project which will create 70 new jobs 
and retain 125 existing jobs. 

The company also plans to expand into a 67,000 square-foot building in 
the Zurn Energy Complex, a former brownfield site remediated through 
Pennsylvania's Land Recycling Program. 

Lawrence County 

The City of New Castle was awarded a $50,000 grant to create an inventory 
and database of firms located within the New Castle Enterprise Zone, to 
update the zone's marketing network and promotional information, and to 
provide technical assistance for firms located within the zone. 

Venango County 

The City of Franklin was awarded a $50,000 grant on behalf of the Oil 
Region Enterprise Zone, comprised of the cities of Franklin and Oil City, 
Sugarcreek and Rouseville boroughs, and Cornplanter, Cranberry and 
Sandycreek townships. The grant will be used to continue implementing the 
zone's business-development strategy, for technical assistance and for 
surveys of employers located within the zone. 

The Enterprise Zone Program's objectives are to improve a zone's jobs 
climate; enable local governments to facilitate growth and employment 
opportunities; and to assist local governments and business communities 
in forming public-private partnerships which help to develop and increase 
private investments and job creation. 

Companies located within Enterprise Zones can qualify for local property 
tax abatements on improvements to their properties and are eligible for a 
20 percent state Corporate Net Income (CNI) Tax credit to rehabilitate or 
improve buildings or land located within Enterprise Zones. Firms can 
receive and additional 10 percent CNI tax credit if projects create jobs 
for low-income residents. 

Firms located in Enterprise Zones which participate in the state 
Neighborhood Assistance Program (NAP) can qualify for an additional 20 
percent state tax credit. 

Employers located in Enterprise Zones are given priority consideration 
for state transportation assistance and the Customized Job Training 
Program, and receive the lowest interest rate available through the 
Pennsylvania Industrial Development Authority (PIDA) loan program. 

In addition to Enterprise Zones, Gov. Ridge recently proposed an 
innovative new community-development initiative called Keystone 
Opportunity Zones, which would serve as virtually tax-free catalysts for 
job creation and private-sector investment in some of Pennsylvania's 
most challenged neighborhoods and communities. 

The Keystone Opportunity Zones would be defined geographic areas where 
most state and local taxes would be eliminated for residents and 
employers to encourage job growth and community redevelopment. 

SOURCE: Pennsylvania Department of Community and Economic Development