By Becky Polaski

The State recently approved new legislation for KOZ, KOEZ, and KOIZ programs.

The names stand for Keystone Opportunity Zone, Keystone Opportunity Expansion Zone, and Keystone Opportunity Innovative Zone, respectively.

According to KOZ guidelines provided by www.newpa.com, "The Keystone Opportunity Zones are designated by the local communities and approved by the State. The Keystone Opportunity Improvement Zones were designated by Executive Order, of the Governor, and approved by the local communities. All Keystone Opportunity Zones provide specific state and local tax benefits. Keystone Opportunity Zones entitle businesses and residents to certain tax benefits when they locate in a Keystone Opportunity Zone. Keystone Opportunity Zones consist of 12 defined areas in 61 counties across Pennsylvania, covering more than 46,800 acres in over 193 sub-zones. Sizes of the KOZs range from under 10 acres to over 500."

"Right now in the City of St. Marys we're talking about KOEZs," said City Manager David Greene. "We didn't get in on the first batch, which was the KOZs, but we did get in on the KOEZs and we're not in the Keystone Opportunity Innovative Zone."

The City's current zones end at the end of 2011.

"One of the options that you have on extending that, and this is only on unoccupied lands – so if its occupied on a KOEZ site then its going back on the tax roll – but if you unoccupied parcels in the KOEZ areas you can take the option to extend that for an additional seven years," explained Greene. "The other option is to allow all the properties to go back on the tax rolls and then what you do is if a parcel that had the KOEZ, if there are parcels unoccupied in those areas, once they are sold and occupied you can allow them to go ten years from the date that they occupy the building."

The new legislation also allows for an additional 15 Keystone Opportunity Expansion Zones to be created.

Greene noted that at the end of 2011 C/G Electrodes has 15 acres that will come back on to the tax roll.

"They have an additional 15 acre tract of land that is unoccupied. It has no buildings or anything on it. It's on the backside of the hill," said Greene. "They would like City Council, and the school, and the County to consider putting that in a KOEZ because they would like to consider developing that land."

Greene explained that the creation of a KOEZ has to be approved by the school district, the County, and the City. Greene added that he plans to meet with representatives from the school district and County and asked that at least two City Council members would volunteer to also attend the meetings.