By a 6-0 vote of Tyrone Borough Council last night, it passed resolution 2003-09 allowing the properties of Westvaco and the undeveloped portion of the Dixon Industrial Park to be approved as a part of the Keystone Opportunity Expansion Zone. The zone is an expansion of the Robert C. Jubelirer Business Park in Snyder Township.
According to borough solicitor Larry Clapper, the properties would have tax-free status on property taxes, income tax, earned income tax, business privilege tax and mercantile tax that would be paid to the borough. This would be for a period of January 1, 2004 through December 31, 2008.
The annual property tax paid to the borough for the two Westvaco properties adds up to $21,470.30, and the property tax paid on the undeveloped portion of the Dixon property is $1,228.53.
Prior to the vote, Mayor Stoner said this is an important step toward attracting business into the Tyrone Borough.
“I personally think that is essential that we do this,” said the mayor. “I think it is essential that we include the Dixon Industrial Park as well. We have an in-house industrial park that we can’t utilize because we can’t compete with the areas who have the KOZ zones. I know of two industries that we have lost in that park because they have moved into KOZ zones. I have always thought that there is no way you can compete when someone else can give you tax breaks. I think we would be doing the borough an injustice by not adopting this resolution. I think this needs to be adopted.”
Council member Jim Beckwith asked, “How this would impact the ongoing budget?”
“You’ll have to adjust your taxes according to the loss about a mill and a half,” said borough director of administration Phyllis Garhart.
Beckwith asked, “So that means that we’re going to raise taxes a mill and a half to compensate for the tax we are going to lose from these two properties?”
“That all depends in general on how the revenue comes until the year end,” said Garhart.
Clapper advised the council that the KOEZ would not go into effect until January 1, 2004.
To be a part of the KOEZ, the properties must be approved by the borough, school district and Blair County Commissioners. The Tyrone School Board will vote on the KOEZ request tonight and the Blair County Commissioners will vote on the ordinance during their May 27 meeting.
If approved by all three governing bodies, there is still a chance that it will not be approved.
“These resolutions will be submitted to the State Department of Community and Economic Development,” said ABCD Corporation vice president Pat Miller. “They will be submitted as part of the Southern Alleghenies Planning and Development Commission’s regional application for Blair, Huntingdon, Bedford, Fulton, Cambria and Somerset counties. The governor will announce the approval of enhancements this fall so the KOEZ can take effect in January of 2004.”
When asked if approval of a KOEZ is vital to the rumored purchase and opening of a new business at the Westvaco property, Miller responded, “I don’t anticipate the mill properties not being accepted by the Governor’s office. It was designed to specifically meet the needs of the mill property. The mill and the Dixon property are almost text book examples of what a KOEZ is for, and I don’t anticipate them being denied.”
In other action taken by council:
• council awarded a $5,700 contract to William Bell for topsoil for the replanting of grass at the Waste Water Treatment Plant;
• approved the low bid of $9,700 by Fairway Laboratories for the WET Testing at the treatment plant;
• approved a change order in the Waterline Replacement Project to include a $325 four inch valve that wasn’t in the previous order;
• approved use of borough facilities for the Emanuel Baptist Church in July. That is conditional on the Church reserving a table at Reservoir Park and checking with the soccer coaches to be sure the field is not being used for practice.
