I am SICK of the whiners wantiing free bee's in this city......worse yet cry babies complain they can;t build a house if they can't get KOZ...THEN DON'T BUY A LOT IF YOU CAN'T AFFORD IT!!
Doomers, I agree with you in concept, but not in application. The problem with getting rid of all KOZs in Scranton is that every other community still takes advantage of them. What's more, something like 30 different states have similar tax-abatement programs. Until every area, every state does away with this (and I'll agree...gulp...with Janet Evans...) "Corporate Welfare" it's pretty short-sighted for Scranton to completely ignore the program. It seems to me that Konsil did the right thing this evening by only approving certain KOZs.
As for Janet Evans, this is simply ANOTHER example of her posturing for "the Legion". She knows damn well that eliminating all KOZs would put Scranton at a competitive disadvantage, but she also knows damn well that some worthy projects will get KOZ approved despite her "principled stand"....hence the posturing.
-- Edited by Agamemnon on Tuesday 23rd of June 2009 08:59:40 PM
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Free Speech does't require a multi-paragrah disclaimer Mr. Pilchesky.
Ag, we've got to get you into a clinic ... like ... NOW! Agreeing with Janet Evans like that ... you scared us all...
KOZ properties are a good thing. But the people who are able to partake of this tend to take advantage. Give them an inch and they'll take a yard ... and a garage and a house and shed out back.
Mostly what concerns me are the larger commercial KOZ properties. Anyone who can afford a large commercial (downtown) property and take advantage of the KOZ status, won't think twice about not paying the taxes when the KOZ status expires. Hell, they could even walk away if their downtown business is not fruitful - and leave the city in the lurch ... yet again.
I can't agree with the "if we don't take advantge, someone else will" logic. KOZ's only benefit the companies that receive the tax breaks. There is little to no oversight on job creation, and like it or not, they have many negatives.
Example: Joe's shoe store has been in business 20 years, pays taxes, and has a decent business. Bill's shoe store moves into town, under a KOZ program, and pays no taxes. Bill's can undercut Joe's prices, having lower overhead by not having to pay city wage tax, state tax, property tax, etc., for 7 to 10 years. Bill's drives Joe's out of business in three years. When the KOZ is over, Bill's can't make ends meet by having to now pay taxes on a new property. Now Bill's looks for another handout, goes elsewhere, or simply folds.
Case in point: The Steamtown Mall got 10 years property tax amnesty when they built in Scranton. It virtually drove out every other merchant in the downtown area. When the time came to start collecting taxes, Boscov's almost went under. There are many stores empty right now in Steamtown.
Another issue often ignored about tax free zones is they still consume public services. If there are alarms, police and fire still respond. The streets people drive to work at the KOZ's still have to be plowed, and patched and paved. The people and businesses paying taxes pay for all the day to day costs, while kOZ's contribute nothing.
Finally, the projects were not going anywhere, KOZ or not. My gosh, the Scartelli project was well under way for at least a month before any vote was taken. Hundreds of thousands of dollars was invested on plans and site preparation. The project would have gone through, KOZ or not.
The problem with the KOZ's in my opinion is quite simple. The concept was excellent.....the implementation was horrific. If the original intent had been adhered to, the program would have been very successful. I believe that anyway.
By the way, if "Louie" really controls all of NEPA, why then were all of his KOZ requests denied? Mind you he never should have gotten them in the first place; buying properties, not paying taxes on them only to sell them to someone else is nothing more than a glorified scam.
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Free Speech does't require a multi-paragrah disclaimer Mr. Pilchesky.
Tax incentives only work when they provide long-lasting, good-paying jobs. BMW in South Carolina. Apple in North Carolina. Mercedes in Alabama. They could go anywhere. But then people work.
Locally, the KOZ program is deplorable. It's a money grab. The Ice Box is reportedly in dire straits. Mr. DeNaples does not need any more freebies. The 500 block of Lackawanna Avenue already received tens of millions in state assistance. Nursing homes are always profitable due to their captive audience and government funding.
