(The Center Square) – Last year, Erie and Reading joined four other locations across Pennsylvania currently designated as City Revitalization and Improvement Zones by the state. The designation allows a locale to get back a portion of state and local taxes for reinvestment in the area.
On Monday, the House Majority Policy committee toured Erie’s development areas to get a closer look at the way the designation can benefit a city.
“I’m always excited to bring members of the policy committee to Erie to show them what we can do and what we’re working on, especially when we’re showing off projects to rejuvenate different parts of our region,” said House Majority Policy Chairman Ryan Bizzarro, D-Erie.
In the case of CRIZ designations, which were implemented in 2013, the work benefits 130-acre regions within a city. Others with current CRIZ designations include Bethlehem, Lancaster and Tamaqua.
Cities are able to maintain the designation and redirect tax revenue from that area for up to 30 years. Erie is anticipating up to $15 million annually, amounting to $750 million over the course of the CRIZ designation.
“These designations are game changers for the cities of Erie and Reading — supplying them with a powerful tool to move their economies forward,” said Department of Community and Economic Development, or DCED, Secretary Rick Siger about their inclusion.
The funds can be used to create new developments, strengthen infrastructure, and support and incentivize businesses. In Erie, the CRIZ program offers free tax reporting assistance for businesses within the zone. It also walks interested parties through the process of applying for project funding through the program.
Committee members toured Flagship Food Hall, a restaurant incubator that currently hosts seven different kitchens and offers live entertainment. Legislators went to Presque Isle State Park and also visited the site of Flagship City Commons, which will offer mixed use commercial and office space.
Where new CRIZ designees Reading and Erie see promise, Lancaster offers examples of how the program has benefitted the city over several years.
In 2023 their work, overseen by the Lancaster City Alliance, boasted more than $12 million in grants awarded through CRIZ funding. Among the projects funded were a library relocation, restaurant upgrades, and the renovation of Tenfold’s Transitional Living Center for people experiencing homelessness.
“The CRIZ initiative is not just a strong economic tool for Pennsylvania, it’s a catalyst for real transformation,” said Bizzarro. “By attracting investment opportunities, creating jobs, and putting our energy into our local neighborhoods, we can help build a stronger foundation for generations to come.”
Erie has been a city long on the decline, but lawmakers hope that efforts like these will serve as a model for other struggling Pennsylvania cities. With a declining population, one of the best hopes for injecting life into the region is to attract newcomers.
Yet some fear that federal immigration policies will have a dampening effect on Erie’s reputation as a “welcoming city,” as was reported in Capital & Main. The largely Republican area has seen conflicting ideologies about how best to combat the issues facing America, particularly in overlooked Rust Belt cities.
Like much of the state, Erie’s mix of red and blue constituents and elected officials forces hands to cross the aisle to generate investment.
The Shapiro administration has aimed to change the state’s trajectory by supplanting the industries which enlivened many Pennsylvania cities in the past with the technology of the future.
Investments at First Ascent Biomedical and Gannon University in Erie reflect statewide efforts to boost population and economic growth through the growing biotechnology industry. The Pennsylvania DCED, which also helps oversee the CRIZ program, put $1.5 million toward new laboratories.
“When legislators from different areas and backgrounds get together, it shows we have a shared vision and determination to breathe new life into our communities and put Pennsylvanians first,” said Bizzarro.
