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Lancaster City businesses receive tax credits to drive innovation and growth

Four Lancaster City businesses have received more than $220,000 in 2022 Keystone Innovation Zone (KIZ) tax credits, Lancaster City Alliance announced Tuesday.

Lancaster City Alliance is the state-designated coordinating agency for the KIZ tax credit program in Lancaster.

The aim of the program is to help drive business innovation and growth by encouraging and cultivating entrepreneurs in important industry sectors. The sectors include high technology, life sciences, business services, and advanced materials/diversified manufacturing.

Awardees include the following businesses:

Creative Coding Group Inc. – $22,975.00.
Pipedream Marketing Inc. - $77,546.00.
Triode Media Group, LTD - $21,307.00.
VIZpin Inc. - $100,000.00 (maximum amount)

“We are pleased for the opportunity to serve as coordinators for the Lancaster City KIZ in support of the City’s vibrant entrepreneurs,” Lancaster City Alliance President Marshall W. Snively said in a statement. “Each time we support a small business owner in the city, we are promoting job growth, investing money back into our community, and improving the quality of life in our neighborhoods.”

The KIZ Program is an incentive program providing tax credits to qualified small businesses in existence for less than eight years. It is administered by the Pennsylvania Department of Community and Economic Development.

Lancaster is one of 29 KIZ regions in Pennsylvania.

“We appreciate the support of the Pennsylvania Department of Community and Economic Development in providing this program to foster innovation and growth,” said Paul Bodell, president and CEO of VIZpin Inc. “As a manufacturer of smartphone access control and visitor management solutions, this credit has made it possible for VIZpin to bring on new staff in sales, customer service, and product development, increasing leads over tenfold and facilitating the launch of a new product.”

Lancaster City Alliance also manages the Building On Strength Economic Development Strategic Plan for the City. To encourage investment, Lancaster City Alliance has worked to align the City’s KIZ locations with the areas identified in the Building On Strength Plan.

“The Lancaster City Alliance team is here to support our business community with a variety of programs that make it as easy as possible to do business and grow and thrive here in the city,” said Jeremy Young, Lancaster City Alliance Director of Community and Economic Development, and Lancaster City KIZ Coordinator.

“What’s more, programs like the KIZ specifically encourage the growth of businesses in the types of industries that create thriving-wage jobs, now more important than ever in today’s economic climate.”

Businesses interested in viewing a map of the Lancaster City KIZ and learning how to qualify for the tax credit program can visit lancastercityalliance.org.

Downtown Dollars available for purchase at Lancaster Central Market

Seeking to keep money in Lancaster City and benefit local shoppers and merchants, Downtown Dollars are now being sold at Central Market.

The Lancaster City gift certificates can be purchased on Market days at the information stand in Market House on 23 N. Market St. The Downtown Dollars can also be bought on the Central Market website.

Every Central Market stand will honor the gift certificates, which can be used at restaurants, retailers, cultural sites and more than 100 venues in Lancaster City. By encouraging shoppers to shop in Lancaster City, Downtown Dollars will keep the money local, and area merchants and farmers will benefit from shoppers purchasing locally made or grown products. 

“Downtown Dollars serve as a gift certificate to so many shops, restaurants, services, and cultural institutions in the city,” Marshall Snively, president, Lancaster City Alliance, said in a statement. “Now that shoppers have the opportunity to purchase Downtown Dollars at Central Market, it is now even more convenient to experience all that Lancaster City has to offer.”

Lancaster Central Market is open on Tuesday, Friday, and Saturday 6 a.m. – 3 p.m. Downtown Dollars can be purchased by shoppers during market days and at the Downtown Investment District Office during regular business hours at 115 E King Street in Lancaster.

Melissa Siwiec, executive director, Lancaster Central Market, said selling Downtown Dollars at the Central Market information stand makes sense since they’re gift certificates that can be used at stands and markets across Lancaster City.

“It gives shoppers one more reason to shop locally and meet us at market,” Siwiec said.

Restaurant week returns after two-year hiatus

After a more than two-year hiatus due to the COVID-19 pandemic, Lancaster City Restaurant Week starts today.

Forty-four restaurants, including 12 new establishments, are participating in the in-person event April 17 through April 23.

The restaurant week committee held an invitation only event at 401 Prine, 401 N. Prince St., to kick off Restaurant Week’s return. Eight restaurants offered specialty dishes that will be available during the week.

Chris Trendler, president of restaurant week and general manager and partner of Decades, 438 N. Queen St., said the event will hopefully draw crowds to downtown Lancaster to reinvigorate business, which has seen issues with staffing and food supply issues since the pandemic hit.

Lancaster City restaurants offer a variety of cuisines including Asian, Irish, French, Greek, Indian, Italian, Nepalese and Middle Eastern, Trendler said.

This year, instead of offering fixed-price menus as was the practice in the past, Trendler said restaurants will offer what they feel will best draw customers.

In addition to the established eateries, the newcomers include 401 Prime, A La Board & Vine, Amanitas Café, Dough Heads Waffles, Layali Al Sham, Proof of Lancaster, Savory Truffle, SpiceKings Kitchen, The Bread Pedaler, The Urban Farmhouse and Wish You Well Bakery.

PA Chamber examines Shapiro’s strategy to rebuild workforce

Gov. Josh Shapiro has been touring Pennsylvania speaking of his proposals to restore the state’s flagging workforce. An effort that may not be looking enough at the big picture, according to the PA Chamber of Business and Industry.

Jon Anzur, vice president of public affairs for the PA Chamber, noted that Pennsylvania businesses of every size and industry are dealing with a workforce shortage that predates the pandemic but was intensified by COVID-19.

“Even before COVID, businesses were struggling with the worker shortage, but the pandemic really exacerbated this challenge,” said Anzur. “So many workers left Pennsylvania to go to another state to find opportunities or just left the workforce entirely. Employers as a result are struggling to find qualified workers.

“You’re seeing Pennsylvania largely starting to recover the jobs that were lost during the pandemic. The challenge, though, is that Pennsylvania lagged the rest of the nation by six months to fully recover those jobs and our workforce today is smaller than it was pre-pandemic.”

In the two-plus weeks following Shapiro’s first budget address, the governor has crisscrossed the state discussing his budget’s “commonsense” proposals to rebuild Pennsylvania’s workforce.

Shapiro’s tour has taken him to Lancaster City to speak to local firefighters, to the Pennsylvania Police Academy in Hershey, the George Washington Carver High School of Engineering and Science in Philadelphia, Lackawanna College Police Academy in Scranton, Gwynedd Mercy University, Colfax K-8 Elementary School in Pittsburgh, and Mercyhurst Municipal Police Academy in Erie.

A common thread to all the above is Shapiro’s desire to hear firsthand the challenges facing nurses, police, and teachers, three professions that have been hit particularly hard by a decreased workforce.

Anzur said that while the PA Chamber appreciates the governor focusing on the workforce issue, he thinks the chamber would encourage lawmakers to focus on policies that would improve workforce development across all sectors.

“From our perspective, job training and investing in proven job training and career and technical job training programs would help individuals develop the skills they need for the jobs that are available,” Anzur stated. “We talk to employers in manufacturing, in technology and innovation, in health care and they have jobs that are available. They just can’t find the workers who have the skills necessary for those careers.”

“Investing in different educational programs and job training, and re-training of workers for these available jobs would go a long way,” he added.

Lack of affordable health care is another challenge the chamber sees as exacerbating the worker shortage.

“This is really a multi-pronged issue,” said Anzur. “We see younger families struggling to afford childcare and it’s leading to one of the adults in the family to leave the workforce to stay home with the kids. This is something we really think the private sector is responsible for driving solutions.”

To that point, Anzur said the chamber is seeing Pennsylvania’s employers taking up the task of addressing the crucial childcare issue in various ways. Employers are assessing their employee’s needs to determine what working parents need from their employers, what their flexibility is in the business, and if they can provide hybrid work schedules and work from home.

“Implementing these sorts of strategies and tracking the impact is something we’re seeing from our members and businesses across Pennsylvania, and I think it’s starting to have a positive impact,” said Anzur. “Figuring out that childcare piece will go a long way to getting adults back into the workforce.”

Viewing the workforce shortage from a macro-economic perspective, Anzur said that as Pennsylvania’s tax and regulatory environment improves, so will investment into the state. That means more economic growth, which would have a positive impact on wages and bring Pennsylvanians back into the workforce and keep them in state.

“With the pandemic, we saw tens of thousands of Pennsylvanians leaving the state to go other places for opportunities,” said Anzur. “As businesses are able to save on costs as the result of tax and regulatory reform, they will be able to invest more of that money back into the workforce. That’s going to lift wages and lead to more Pennsylvanians seeking employment here.”

An additional key factor in rebuilding the state’s workforce focuses on continuing the phase down of the corporate net income tax from its current 8.99% to 8.49% later this year and eventually down to 4.99% by 2031.

Permitting reform is another issue Shapiro has been speaking to, and Anzur noted that Republicans in the Pennsylvania Senate have introduced legislation to streamline and speed up the permitting process.

“That’s a process that costs businesses millions of dollars annually here in Pennsylvania,” said Anzur. “As businesses save on those costs and are able to reinvest that money back into their workforce, I think you’ll see a positive impact of people coming back into the labor force here in Pennsylvania.”

Workforce shortages rank among the biggest challenges facing Pennsylvania residents, and Shapiro has proposed incentivizing the nursing, police, and teaching professions with a three-year tax credit of up to $2,500 per year for new recruits.

Anzur said the PA Chamber agrees with the governor’s prioritizing the labor shortage, and at the same time is taking a big picture view of the crisis.

“From our perspective,” said Anzur, “while we share the governor’s concern and focus on strengthening Pennsylvania’s workforce, we’re looking at a more macro approach to addressing this issue that will impact positively Pennsylvania’s workforce across all sectors – job training, childcare, and improving our tax and reg environment.”

Catherine Hershey Schools for Early Childhood Learning coming to Lancaster

From left: Senate Alexander, executive director, CHS; Lisa Scullin, vp of communications, MHS; Peter Gurt, president of MHS and CHS; and Danene Sorace, Lancaster mayor – Photo by Cris Collingwood

Catherine Hershey Schools for Early Learning (CHS) plans to open three early childhood education centers in Lancaster County by 2026.

The cost-free centers for children from birth to age five will be built in Lancaster City, New Danville and Elizabethtown, Peter Gurt, president of Milton Hershey School (MHS) and CHS, told a crowd of more than 150 child advocates and local dignitaries at the Eden Resorts & Suites in Lancaster Thursday.

The three centers are part of a $350 million initiative to develop six sites as subsidiaries of MH.

Gurt said each site will offer non-residential, year-round programs for 150 children from economically disadvantaged and at-risk backgrounds focused on educational, social and emotional development.

The initiative began in September 2020 with plans for three schools in Dauphin County, with one in Hershey slated to open next year, one in Harrisburg in 2024 and one in Middletown in 2025.

“It is my pledge that we will give the same quality care to these centers as we do in Hershey and partner with you to support and enhance the work you are doing,” he said to the crowd of child advocates.

The New Danville site will be at the former Lancaster Mennonite School on Long Lane and the Elizabethtown center will be located near Beverly Road and Route 743. The Lancaster city site has not been determined to date.

Gurt said the sites were chosen, not only based on need, but the connection to Milton and Catherine Hershey.

Milton Hershey grew up in Bart Township and many of his family members are buried in New Danville, Gurt said. Catherine Hershey volunteered at the former St. Joseph’s Hospital in Lancaster and served as an inaugural member of the Lancaster Charity Society. They both were involved with Franklin & Marshall College, he said.

Milton Hershey started his candy business in Lancaster as the Lancaster Caramel Co. before moving to Hershey. He founded MHS in 1909.

Gurt, who is a graduate of the Milton Hershey School, said, “the school transformed my life and the life of my family with quality education, enrichment and support.”

The mission of CHS, he said, is to change intergenerational poverty. “We have found that students who enroll the earliest have the greatest success.”

Senate Alexander, executive director of CHS, who is also an alumnus of MHS, said, “Early childhood education has long been undervalued as was highlighted during the pandemic. The gap between low-income students and high-income students was great.”

The new schools, he said, will increase literacy and graduation rates, which have been shown to decrease criminal activity and the likelihood of negative consequences.

In addition to the focus on education and social and emotional development, Alexander said the schools will provide meals, transportation and support services to families of enrolled students.

“We want to break the cycle of poverty,” he said.

Alexander emphasized that the schools will work in collaboration with existing organizations to empower families and their children. “We can’t achieve this alone,” he said.

Lancaster Mayor Danene Sorace said as a mayor and a mom, she has seen children that start “behind the line.”

“We are advocates for all families and their children,” she said. “We see what families are up against every day.”

Sorace said the city and county have an “incredible” gift that will have a ripple effect through the community.

Addressing the audience, she said, “Your work is not unneeded. This puts wind in your sails,” referring to the work other agencies are doing.

“The ripple effect of this will strengthen our economy, grow businesses and create successful kids,” she said.

While the school is still looking at potential sites, Gurt said Kresta Horn will be the director of the New Danville site and Luanne Gould will lead the Elizabethtown site. The search is still ongoing for the head of the Lancaster city site, he said.

Lancaster city and county officials work to solve affordable housing crisis

Affordable housing is at such a premium in Lancaster County, the waiting list is extensive.

Social media has numerous posts about people losing their homes due to rent increases, many of whom don’t know where to turn.

The Lancaster County Housing and Redevelopment Authority and the Lancaster City Housing Authority along with other county representatives, recently attended a Housing Solutions Workshop at the New York University Furman Center’s Housing Solutions Lab to find a solution.

Justin Eby, executive director for the county authority, said the issues are many. “The pandemic put a strain on the number of units available and the price for those units has gone up,” he said.

“We need to look at this wholistically,” Eby said. But with 59 townships and a city within the county, the solutions are not easy. Current zoning and uses don’t align.

The demand for affordable housing increases 12% to 15% every year. “The supply is just not there,” Eby said.

Katie Walsh, director of strategic initiatives for the Lancaster City Housing Authority and a Lancaster City Council member, said the workshop was “quite helpful.”

The workshop “provided access to experts who understand supply and demand and helped us access what we need to build or preserve units,” she said.

That is no small task. Walsh said her team has met with county officials and quickly realized they work in separate domains. However, she said, they are working cooperatively to solve this issue.

Both authorities work with qualified people to provide safe, decent, affordable housing, Walsh said.

The city authority, a Quazi-government entity, gets funding from the federal Housing and Urban Development. It runs public housing in two high-rise buildings that total 565 units. It also provides 1,000 vouchers to people living in what Walsh said people know as Section 8 housing.

The vouchers, she said, are capped by the U.S. Dept. Of Housing and Urban Development. Walsh said one bedroom apartment can be rented for $800 a month. The problem is the market rate is around $1,200.

“That is a disincentive for landlords to accept the vouchers,” she said. “If they can rent for $1,200, why would they accept $800?”

Eby added that even though municipalities work with developers to provide mixed use properties, with the cost of construction prices going up and the desire to make at least a 10% profit, it’s hard to get developers on board.

Walsh said clients are the most vulnerable citizens. “Most are seniors, and the others are disabled and families,” she said.

Eby and Walsh said affordability is based on no more than 30% of income. If it is more, it is considered a cost burden.

“We can only do what we can with the resources we have,” Walsh said. “People end up staying with family and friends or end up on the street.”

Eby agreed. “We have an enormous wait list, and the shelters are already full which is unusual for this time of year.”

Eby said data has shown the county needs 1,150 units per year. He hopes to see 100 units go online this year.

Both agreed increasing the supply of housing would help, but it takes at least 18 months to finance and build new units.

Eby said landlords are not regulated unless a unit is covered by affordable housing. So, when they decide to raise rent, it can displace tenants.

Walsh said the city, too, is burdened with rising rental rates, leaving people with nowhere to go. “We are looking at building new units, but we also have to upgrade the current one,” she said, adding that most were built in the 1950s.

“There is progress,” Walsh said. “The city has created an Interim Housing Plan. The issue is it needs lots of helping hands.”

Walsh said there is a lot of attention being placed on the affordable housing issue. “I’m glad people are paying attention and it’s becoming a priority,” she said. The federal government has invested American Rescue Plan money and the city and county are setting it aside for housing. In fact, Walsh said there is about $10 million for projects.

“Low-interest soft loans to offset construction and permit costs could help for long-term low rent projects,” Eby said.

“There is a lot in the works. Some agencies are working on new housing while others are preserving what they have,” Walsh said. “There is investment and energy, but it won’t happen overnight.”

In the meantime, with shelters full earlier than anticipated, Eby said the county may have to look at hotel rooms, which is an expensive way to house people.

New tourism trail targets coffee drinkers

Cafe One Eight at 18 W Orange St, Lancaster, is one of 21 coffee shops on the Discover Lancaster Coffee Trail. PHOTO/CAFE ONE EIGHT

Discover Lancaster is rolling out a new initiative that puts coffee drinkers on the road to Lancaster County coffee shops.

Some 20 unique coffee shops, in fact, are spread across Lancaster County and reach from Lancaster City to Ephrata.

“The rollout comes at a time when tourism has traditionally seen an uptick in out-of-town visitors arriving for the popular fall harvest season,” said Ed Harris, President & CEO of Discover Lancaster. “This is one more fun activity to add to a jam-packed itinerary to enhance the visitor experience. There’s plenty of options to find a great coffee and pumpkin-spiced latte.”

Developed in partnership with Bandwango, the Discover Lancaster Coffee Trail is the first in a series of themed trails to be rolled out in future seasons to enhance the visitor experience. Harris said the mobile passport offers a curated collection of coffee shops in Lancaster, as well as exclusive deals and discounts to favorite local coffee spots.

“From Lancaster City, to Intercourse, to Ephrata, and everywhere in between,” said Harris, “there’s a wide range of unique coffee shop experiences that can be found in our towns across Lancaster County.”

The list of participating shops on the Coffee Trail include:

Aura Espresso Room; Bird-in-hand Bakery & Cafe; Butter & Bean; Cafe 301; Cafe Arabella; Cafe One Eight; Coffee Co – Lancaster; Copper Cup; Courtyard Cafe on Main; Hudson Botanical; Javteas Gourmet Coffee Cafe; La Mattina Caffe; Mill 72 Bake Shop & Cafe; Passenger Coffee & Tea; Prince Street Cafe; Rachel’s Cafe & Creperie; September Farm Cheese; Speckled Hen Coffee; Square One Coffee Roasters; The Houston Co. Cafe; and The Roasted Rooster

“Our new mobile-based coffee trail highlights the many small businesses who have poured everything they have into opening the coffee shop of their dreams,” Harris said.

Visitors to the participating coffee shops can check-in digitally at each stop to count towards their prize. After 5 stops visitors earn a Discover Lancaster Sticker & Coaster. After 10 stops, a Discover Lancaster Coffee Mug. A Discover Lancaster Canvas Bag is earned after 15 stops. Prizes can be redeemed at Discover Lancaster visitors center.

“This is an invitation to celebrate Lancaster and bring more business to our small businesses,” said Harris. “Our mission is to educate people about what’s in our back yard. We have expectations for an ice cream trail, a brewery trail. We’re excited to roll this out and test it.”

More than 500 housing units proposed for Lancaster City in three new projects

Plans for two housing projects and a retirement community were presented to the Lancaster City Planning Commission Wednesday night, potentially adding more than 500 housing options for residents.

Proposed development for Queen and Frederick streets in Lancaster. Photo by Cris Collingwood

Willow Valley Communities presented its final lot consolidation and land development plan for a retirement facility.

The 20-story building to be located at 17 W. Vine St. will have 146 independent living apartments along with amenities including a pool, ballroom and restaurant for residents.

Craig Smith, principal for RGS Associates Inc., architects for the project, outlined the final plans for the project across Vine Street from Southern Market. He said he is hoping for conditional approval at next month’s meeting.

The building will replace the vacant former LNP Group building and will connect residents to Steinman Park, allowing access to Central Market.

The historic Yeates House, 24-26 S. Queen St., will be incorporated into the project, Smith said.

Final Land Development plans for 244 residential units, a medical building and a parking garage in the 500 block between Prince and Queen streets were presented by Hankin Group and Lancaster General Health.

The project, to be built, owned and managed by Harkin Group, combines nine parcels into two larger lots with a three-story 32,833-square-foot medical building to be leased by LGH, a four-story multi-family building with a pool in the courtyard, a five-story multi-family building with retail space and a parking garage.

The project includes renovation of a tavern and carriage house on Prince Street. Neal Fisher, vice president of engineering for Harkins Group, said the four-story building was designed so as not to overshadow the tavern, keeping the historic property visible.

The residential units for this project will be leased for between $1,000 to $2,500 a month, he said, depending on the size of the unit. The buildings will offer efficiencies, one-bedroom and two-bedroom units.

Maxine Cook, a member of the Planning Commission, expressed concern that no affordable housing was included in the project. Fisher said he is all for affordable housing, but this project is not intended for that purpose.

Bureau Chief of Planning Doug Smith pointed out that the city needs all types of housing and said the project offers the city a lot. “The historic preservation measure makes this project special,” he said.

Final approval was granted.

Another residential plan for 202 N. Queen St. was presented for informational purposes. The plan calls for a 12-story, 142 residential unit building with 2,800-square-feet of retail space on the Chestnut Street side. The original plans, which called for a 14-story building, has since been redesigned.

ELA Inc. Hopes to submit final plans for the property in the coming months.

Central Pa., Lehigh Valley businesses get KIZ tax credits

Gov. Tom Wolf announced Thursday the approval of $14 million in 2021 Keystone Innovation Zone tax credits for 197 early-stage technology companies, including 10 in central Pennsylvania and the Lehigh Valley.

In the Northwest Lancaster City KIZ, tax credits went to Triode Media Group Ltd., $100,000; Creative Coding Group Inc., $9,074; and VIZpin Inc., $95,826, while ReturnLogic Inc. in the York County KIZ got $100,000 in tax credits.

In Southside Bethlehem KIZ, Soltech Solutions LLC, $100,000 and $50,326; Almas Foods International, $88,569; Paro AI Inc., $100,000; UBMe Inc., $2,824; Seven Sirens Brewing Co., $100,000; and Optamo LLC, $14,895, received tax credits.

The Keystone Innovation Zone program provides tax credits for companies that have been operating for less than eight years, have increased gross revenue over the previous year, are located in a KIZ, and are within a targeted industry sector such as information technology or advanced manufacturing/diversified materials, a release explained.

The program provides young companies with working capital to meet critical needs, whether that’s capital expenditures, workforce expansion, operational expenses or making these businesses more attractive to investors.

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Tag: lancaster city

Lancaster City businesses receive tax credits to drive innovation and growth

Downtown Dollars available for purchase at Lancaster Central Market

PA Chamber examines Shapiro’s strategy to rebuild workforce

New tourism trail targets coffee drinkers

Central Pa., Lehigh Valley businesses get KIZ tax credits

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