CRIZ nets Lancaster more than $12.5M for revitalization

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Lancaster will receive more than $12.5 million from the City Revitalization and Improvement Zone (CRIZ) program to spur revitalization, business and job growth. 

Secretary of Revenue Pat Browne today announced the funds are part of nearly $17 million to be returned to three communities participating in the CRIZ program.  

“This program is generating critical economic growth right in Pennsylvanians’ backyards,” Browne said. “In the decade that this program has existed, we are seeing encouraging results from the investments that have been made in the participating communities.” 

The funding being returned is based off the period from Jan. 1, 2022 to Dec. 31, 2022. The CRIZ program functions by capturing state and local taxes that are returned to a designated zone up to 130 acres for the purpose of improvement and development. Overall, the CRIZ program has delivered a total of more than $70.2 million since its inception in 2013, spurring new growth in cities and reviving struggling areas while creating jobs.  

Lancaster will receive $12,678,686.88. The payment is attributable to $2,010,213.11 in state taxes remitted by 130 new businesses within the program, as well as $10,523,960.57 from 271 existing businesses, and $144,513.20 from 35 construction contractors. Of the 551 businesses in the zone, 467 required reports were filed. 

In addition to Lancaster, Bethlehem will receive $2,721,809.71 and Tamaqua, Schuylkill County will receive $1,596,307.50, Browne’s department said. 

The CRIZ program was established by Act 52 of 2013 and amended under Act 84 of 2016 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. A CRIZ is an area comprised of parcels designated by an authority to capture state and local taxes for the purpose of improvement and development in the designated CRIZ zone. 

The program is similar to a tax incremental financing program. It is structured to protect the existing state and local tax base, while providing incremental funding for tax revenues based on new growth generated over and above an established baseline per business and new tax. 

The funds are paid to the local development authority for the zone, and can be used for debt service, property acquisition, new construction, and other costs related to development projects in the zone. 

The CRIZ program is administered by the Department of Revenue, the Department of Community and Economic Development (DCED), and the Governor’s Budget Office.