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Lackawanna county commissioners meeting

Long-term fiscal stability is focus

Commissioners unanimous in deciding to enlarge Keystone Opportunity Expansion Zone.

RALPH NARDONE Times Leader Correspondent

SCRANTON -- The Lackawanna County commissioners mulled options to improve the county’s long-term economic stability at Wednesday morning’s meeting.

Commissioners then voted unanimously to enlarge a large-scale Keystone Opportunity Expansion Zone, or KOEZ, refinance county debt and authorize $2 million in park improvements.

The KOEZ status will be expanded for another 350 acres in Jessup and Archbald boroughs’ Valley View Business Park, said Scranton Chamber of Commerce President Austin Burke.

Burke said the KOEZ is a “powerful tool” for county economic development.

The business park, which was previously abandoned mine lands, now provides the location for 1 million square feet of industrial space that translates into 1,500 jobs, Burke said.

The expansion is expected to “add a couple hundred more (jobs),” he said.

He added the Pennsylvania Department of Transportation has $17 million ready for connections from the business park into Jessup and Archbald. And, the chamber has $18 million ready for infrastructure improvements, such as roads, water and sewer services.

With tight credit markets and increasing competition among neighboring states and counties, the KOEZ becomes a necessity, Burke said. Many companies seeking to move operations into Northeastern Pennsylvania will look only at KOEZ properties, he said.

Commissioner Corey O’Brien implored local school districts and municipalities to support the KOEZ efforts. He emphasized that although there are cases in which businesses move from areas where they pay taxes to tax-exempt KOEZs, the benefits “greatly outweigh” the costs.

The long-term economic development turns unproductive and blighted properties into productive revenue-producing ones, he said.

Burke concurred, saying in 2010 a significant portion of the tax-exempt status of the Valley View business park will expire and could generate up to $500,000 in real estate taxes.

Commissioner A.J. Munchak voted in agreement but took the opportunity to chide Burke about showing up on a frequent basis with his “hand out.” Munchak asked if Burke could show up with a check in his hand next time.

In other action, the commissioners approved $2 million in grant requests for improvements at Aylesworth and Covington parks. The portion of the money will come from the state Department of Conservation and Natural Resources, said Commissioner Mike Washo.

None of the money will be used for hiring county staff, he stressed.

The commissioners also voted to award the following contracts to start the work on the parks: $418,000 to Spano Construction for general contracting, $33,320 to Joyce Electric, $15,700 for Scranton Electric Heating and Cooling, $30,778 to Bognet Inc. for plumbing work.

All contractors use union labor, said Bill Davis, county deputy director for Parks and Recreation.

The commissioners approved unanimously to “stretch” a portion of the county’s debt for up to four more years. Washo said although that is not always a good idea, the debt restructuring will add $1.7 million to the county coffers in 2009 and approximately $1 million for each of the next four years.

He reiterated fears of significant financial deficits in the county if no action is taken.