Pennsylvania's House Urban Affairs Committee on Sept. 15 approved a bill sponsored by Rep. Patty Kim, D-Harrisburg, that would enable capital city Harrisburg to develop vacant, desolate, underused or abandoned space.
The committee unanimously approved Kim's bill, which enables Harrisburg to participate in the nascent City Revitalization and Improvement Zone program. The bill now awaits a vote by the full House.
The CRIZ program would authorize the investment of Pennsylvania tax revenues in designated zones to enable new investment in local economies by redeveloping eligible vacant, blighted and/or abandoned properties for commercial, hospitality, conference, retail, community or other mixed-use purposes.
"The CRIZ program is a great resource that has done a lot of good in our state, and I believe that Harrisburg should be able to take advantage of it," said Kim, a former Harrisburg city councilwoman.
The program, created last year, is based on Allentown's neighborhood improvement zone program, which resulted in more than $500 million in new investment for the city. CRIZ allows eligible cities to create an authority to issue bonds for redevelopment projects. The bonds are repaid using most state and local taxes generated within the CRIZ area during and after construction. Developers must supply at least 20% of the development cost for the project through private funding.
Under the original legislation, third-class cities with populations above 30,000, except for Harrisburg, which was under state receivership, could enroll in the program. Kim, however, said that Harrisburg, which exited receivership in March, should be able to participate.
"I believe it is unfair to restrict the city, which faces unique challenges as the state capital, from permanent participation in a program which has the great potential to stimulate the local economy and improve the lives of its residents and visitors alike," Kim said. "I am glad the committee approved the bill, and I hope it becomes law quickly."
