1. Lancaster City Revitalization and
Improvement Zone Program

2. • Purpose of the Program
– Provide a financial resource to eligible third class
cities in the Commonwealth to improve and
develop targeted areas of the City
• Lancaster’s Approach
– To focus on infill development on vacant and
underutilized sites, and the redevelopment of
existing challenging sites within the City which
have some barrier to development.

3. • Program administration
– The City has created a CRIZ Authority under the
auspices of the State’s Municipal Authorities Act
to administer the program
– The CRIZ Authority has established the CRIZ
District of just under 130 acres
– The CRIZ Authority will manage the program and
will be the entity that will issue bonds to provide
project financing or act as a pass through of state
revenue to a project to pay debt service on a loan

5. • Eligible Taxes That Generate CRIZ Revenue
– Corporate Net Income tax (apportioned)
– Capital Stock and Franchise Tax (apportioned)
– Bank Shares Tax (apportioned)
– Sales and Use Tax (related to activity in the CRIZ)
– Personal Income Tax (for work performed in CRIZ)
– Tax on sales of liquor, wine, malt and brewed beverages in
the CRIZ (tax paid to the LCB by businesses)
– Local Services Tax (for work performed in CRIZ)
– Local Earned Income Tax (for work performed in CRIZ)

6. • Uses of CRIZ proceeds
– Development or improvement of property within
the designated CRIZ
– Construction, including infrastructure and site
improvements to a site or facility within the CRIZ
– Improvement projects including the acquisition
and installation of FF&E for a facility owned by a
public authority, such as the Lancaster County
Convention Center

7. • Project Financing Focus
– The financing provided will primarily focus on
assisting projects that will:
• Create new jobs
• Create new state tax revenues including sales and use
taxes; personal income tax; wine, liquor and malt
beverage taxes; a number of State corporate and
business taxes; local earned income taxes and local
services taxes
– Property Taxes are not included and we would anticipate that
properties receiving CRIZ Assistance would not be eligible for
property tax abatement programs

8. • How does it work
– The State has established our baseline year as 2013.
This will determine the amount of existing state and
local tax revenues generated by qualified businesses
within the CRIZ.
– Eligible CRIZ revenues will then be those that exceed
the level of revenues generated in the baseline year
by each qualified business located in the CRIZ
– CRIZ revenue is made available for payment of debt
service on eligible projects or for public improvements
related to a private development project
– Matching funds must be provided in a ratio of no less
than one private dollar invested to every five CRIZ
dollars

9. • Limitations
– Eligible tax revenues generated by an existing
Pennsylvania business that transfers into the CRIZ
would not be considered new revenue, these
revenues are added to the baseline
– Businesses that are new businesses or relocating to
the CRIZ from outside of Pennsylvania will be
considered new revenue
– For existing businesses in the CRIZ, only those tax
revenues generated that exceed the revenue
generated in the 2013 baseline year will be available
to the CRIZ Authority

10. • Where we are today
– Developing a list of businesses that are located within
the CRIZ areas which must be submitted to the State
by June 1, 2014
– Developing an outreach and education program for
those businesses and properties owners located
within the CRIZ area
– Engaged a consultant to work with businesses on tax
reporting requirements. Tax reports must be
submitted by June 15, 2014
– Establishing Financing Guidelines and Fee Structure

11. • Where we are today
– We have defined some of the initial projects that
may be financed
• Conestoga Plaza Commercial Project
• Convention Center FF&E
• Lancaster Square (east side) including the Bulova
Building, the plaza area, the Hotel Lancaster property
and the Annex buildings
• Aquatic Center at Burle
• RRTA Air Rights above the Garage on North Queen and
East Chestnut
• Kepple Building in the 300 block of North Queen

12. • Benefits to the City
– Ability to reposition and redevelop properties that
have sat vacant or underutilized for a significant
period of time, i.e. east side of Lancaster Square,
Conestoga Plaza, 800 block of North Prince Street
– Equalize the economic disadvantages of developing in
the City vs. the suburbs
– Job growth and retention of existing jobs by providing
Class A and B commercial office space for new
businesses, relocating businesses or expanding
businesses

13. • Benefits to the City
– Opportunity to recruit new businesses to the City
– Increase job opportunities within the City for City
residents through recruitment of businesses that
create professional job opportunities
– Grow the property tax base through increased
assessment of properties that are redeveloped or
vacant sites where new construction occurs
– Grow earned income tax revenue over the longer
term

20. Contact Information:
Randy S. Patterson, Director
Economic Development & Neighborhood Revitalization
City of Lancaster
120 North Duke Street
P.O. Box 1599
Lancaster, PA 17608-1599
Tel: 717-291-4760
Mobile: 717-201-7498
Fax: 717-291-4721
Email: RPatterson@cityoflancasterpa.com
Website: www.cityoflancasterpa.com