Job Creation, KOZ Discussions Separate Commissioner Candidates
Former Pennsylvania Secretary of Agriculture George Greig reads an audience question to Armstrong County candidates last night at a community forum at the Manor Township fire hall in McGrann.
by Jonathan Weaver
More than a dozen Armstrong County Commissioner candidates expressed their views on about a half-dozen topics during a community forum last night.
More than 120 local residents listened to the 14 candidates present state their viewpoints in one minute regarding county wages, Clean and Green rates and job creation.
Most of the candidates agreed that the office of commissioner is and should be a full-time job when three of them fill the vacant seats in January 2016, but they had varying opinions on how to bring jobs into Armstrong County and if Keystone Opportunity Zones (KOZ) should be expanded to help.
Roy Morrison, of Apollo said expanding the industrial park is one of the easiest ways to attract new businesses, but others disagreed.
Paul Rearick – a current Manor Township supervisor – and Keith Williamson – a former Worthington Borough councilman - said that Keystone Opportunity Zones have not worked to strengthen the county and opposed expansion
“KOZ’s have produced marginal results – why invest more money to get the same result? It doesn’t make sense,” Williamson said.
Fellow Manor Township Supervisor Pat Fabian and Candidate Mel Marin, of Ford City, have seen KOZ’s fill the Manor Township business park – such as with Steve’s Auto Body and Projectile Tube -, but said Keystone Opportunity Zones are ideal for every municipality.
“They all have their advantages and disadvantages, but those need to be assessed community by community, property by property,” Fabian said.
Jason Renshaw, of Freeport, also was not in favor of dedicating more land as Keystone Opportunity Zones.
“That’s work with what we have and get them operating and filled up,” Renshaw said. “We need to get businesses in there – whatever we can do to attract them, we need to do that. Adding more is not going to do any good.”
Corporate net income taxes, capital stock and franchise taxes and sales taxes, among others, from the municipality, school district and county will all be withheld from business expenses for up to 10 years should a company move into such Keystone Opportunity Zone properties once they are vacant.
Armstrong County currently has five designated KOZ’s: the Northpointe Industrial Park in Freeport, the West Hills Industrial Park in East Franklin Township, the Manor Township Business Park in Manor Township, along the Allegheny River in Ford City Borough and along the Kiskiminetas River in Apollo Borough.
Keystone Opportunity Zones were instituted by county commissioners in 1999. About 570 acres are currently designated areas for 10-year tax breaks.
Incumbent Commissioner David Battaglia, of Rayburn Township, said he preferred approving Local Economic Revitalization Tax Assistance, or LERTAs – a schedule that would start with no business taxes but increase by 10 percent each year for 10 years.
David Croyle, of Kittanning, Fabian and Renshaw all said they have personally talked with municipal leaders or different businesses in the past two years about moving into the local area.
“Jobs are central to what we do if we want to move the county ahead,” Croyle said. “I believe so much in being able to network and market the county through personal representation, not just depending on a marketing plan or a brochure.”
Patricia Kirkpatrick, of Cowanshannock Township said officials must first keep local businesses thriving in the area, and then find businesses in the same fashion without losing taxes through Keystone Opportunity Zones.
“It’s about relationships: you walk in the door, they should be able to recognize you,” Kirkpatrick said.
County Republican Committee Chairman Michael Baker listened from the audience as the eight Republican candidates spoke on the issues
“I think they all hit on the key areas on voters’ minds – jobs, taxes and trying to cut spending,” Baker said.
Jollene Depner, of North Buffalo Township, travels 122 miles per day roundtrip to work in the pathology department at Jefferson Hospital in the South Hills. She said she learned more from listening to and seeing the candidates rather than just reading about their opinions.
“I’m very interested in hearing if Armstrong County is going to pull jobs here. I do a lot of traveling – I love my job, and that’s not to say I’d come back, but I’m always curious if they know about people like me,” Depner said. “If you don’t have the choice here, you have to go somewhere else.”
The evening was organized by Val Houston and Bob Iseman – both past Armstrong County Farm Bureau directors. Both said the event was successful and were pleased with the turnout.
Local News | jweaver April 24, 2015
By scott_starr, April 24, 2015 @ 8:18 AM
Just my advice for all potential comissioners.
get a plan outline:
1. Family Farms- how to save/keep them.
2. Business Environment- what to change/what to keep
3. Showcase schools - BC3, Lenape, New School - Future plans ?
4. Recreation and quality of life - low crime, outdoor activities etc.
5. Meet as many local mayors and city/town councils as possible find out what they need and what they can offer.
6. Taxes, Taxes, Taxes ( get the whole county to be a KOZ)
do a darn SWOT analysis on the localities, find out what is common and what is different. Develop each locality based on the strengths, and get help for the weaknesses.
You will be told your plan won’t work, and the response would be “show me your plan”
By jorn jensen, April 24, 2015 @ 9:04 AM
Well, 9 of the 14 commissioner candidates were mentioned in this article. The others, not so much.
My position on full time job is that the job of commissioner is that plus more. There are committees, interaction with Harrisburg, on and on. It is more than a 40 hour job.
Mel Marin challenged all contenders to take 1/2 pay for the job. My supporters don’t want a 1/2 pay commissioner - that a commissioner had better be able to save the taxpayers much more money than the pay of 3 commissioners.
I do not support expanded KOZ and I stated such in the discussion. True that KOZ-filled companies hire employees that pay taxes, but the companies also need to pay their fair share. I support the LERTA arrangement and giving other incentives such as land that the county owns - but quality companies need to pay taxes just like the rest of us do.
On Clean and Green, I want to take it back to the 1997 rates. We pay much too much tax in Armstrong County and that is what makes us non-competitive with other counties.
I am the candidate that will work to cut taxes and bring in quality private sector business and industry through my 40 years of industrial contacts and networking. We have Lenape Tech and now BC3 to prepare people for such employment - they should not have to travel massive miles, daily, for work. The work can be right here.
By Frank Navasky, April 26, 2015 @ 8:25 AM
This forum was very informative and I think served the community well. I’m glad I attended because I gathered some very good information on the candidates. I wish more people in the area had attended. Everyone sees the signs all over the county but hearing from them directly was very helpful. I liked Pat Fabians reasonable responses on KOZs. And the fact that he’s motivated and has already taken action to develop a wider tax base for the county is impressive. The other candidates agree on the need, but Fabian is already talking to local leaders in an effort to spur it along. That really impressed me.
By Flamingo1, April 26, 2015 @ 10:52 PM
Ah the KOZ. A manufacturing company comes in and gets a 10 year tax free welfare grant. The entrepreneur who starts a restaurant, a bakery, a marina, a retail store gets no such break.
And then after 10 years the company moves on to another place, or state.
Why favor one type of business over another? Why give anyone such a break?
By jorn jensen, April 26, 2015 @ 11:22 PM
Scott Starr, I agree. The forum was set up that we had to answer questions, and that is good. We got a one-minute intro, and a one-minute closure ‘talk’ - that’s it. You tell them, quick, your education, experience, and what you plan to do for the people of the county.
I do have a plan, and it involves action from the state leaders. We have industrial parks. Mostly empty industrial parks, but we have industrial parks. We need to change the mindset of this county or we’ll just continue the enrollment decline in the schools and increase the drug and taxation problems.
Frank Navasky - GLad that you attended the meeting at the fire hall. I agree with the first part of your comment - public appearances are much better than a bunch of signs that effectively become litter when the wind blows. The signs are name recognition without voices. They are apparently a popularity ‘trick’. So, I had to do it like everyone else. I personally believe that the money would have been better spent on candidates’ presented plans in newspapers or in public meetings.
One guy gave me hell, today, for putting up my signs. I said, “Sir, I don’t like this either. This is the accepted method of getting name recognition.” “Maybe so.” he said, “Okay, then don’t put your sign there.” “Okay, I won’t.” and I moved on.
I’ll have burned 3 tanks of gasoline by the time I’m done putting up the signs - and, I’m keeping a list of where they are so that I can remove them when the primary is over - another 3 tanks of gas.
By jorn jensen, April 26, 2015 @ 11:29 PM
Why, Flamingo? Because we are starved for good-paying jobs in this area - that is why politicians have come up with KOZ. And you are exactly right - you and I pay the taxes of the company that doesn’t have to pay the taxes. Part of politicians’ justification of KOZ is that it supposedly brings jobs and job holders pay taxes on their income.
But, we have mostly empty KOZ industrial parks. Why is that? Because we need to change our mindset, both in this county and in this state. With property tax elimination and making Pennsylvania a right-to-work state, we can compete for business and industry.
By scott_starr, April 27, 2015 @ 8:14 AM
THE KOZ proves one thing…. Corporate Taxes ( and all taxes) are too high.
If taxes were reasonable, there would be no reason for KOZ’s.
PA Corporate Tax Rate 9.99%
NY 7.1% ( They are offering something similar to KOZ)
NJ 9.0%
MD 8.25%
The above shows why local authorities have to set up KOZ, PA has the highest corporate tax rate.
for those concerned about corporations getting a “free ride”, the KOZ should be set up that any company utiizing a KOZ buy an insurance policy ( for lack of a better term) for a10 year term. The policy would have a cash value, but also, if the company leaves or goes under during the 10 year tax free period then a larger payment is given to the municipality. ( kind of like a universal or whole life policy). If the company stays the full 10 years, ( plus five additional for example) the cash value of the policy is returned to the company.
Just as an example, let’s say a company using a KOZ must buy a $100,00 policy. Monthly Payment for the policy would be $900.00, and $300 would be the cash value portion ( the insurance company would collect a $600 premium). ( don’t get stuck on the numbers, I’m not an actuary)
If during years 1 - 10 the company leaves, is bought out and moves, or goes under the municipality will get $100K.( the face value of the insurance policy)
If the company stays the full 10 years there is a cash value of $36K, which can be given back either in a lump sum or over X number of years. Or the municipality could keep it. ( it all depends on how it is negotiated).
By Hazzard, April 27, 2015 @ 8:30 AM
KOZ - Keystone Opportunity Zone.
Let me see, in this hand with a KOZ we get the extra nudge for a company that will employ numerous county residents both in the construction of the facility and the day to day business operation and by the wages they earn pay taxes and support local business.
But in the other hand without a KOZ the company that took a look at our business parks but then decided to locate in a different area because of KOZ tax incentives. Not to mention an educated workforce prepared for manufacturing jobs.
This result equals the same empty lot we started with in both scenarios but yields the result of an empty lot, no employ of county residents, more and more people moving away or driving many miles to jobs and no employees paying taxes and supporting local business with a larger tax burden on fewer and fewer county residents.
I’m not saying KOZ is the answer but it is a tool and I believe we as a county should use all the tools we can get our hands on to entice job growth.
EDUCATION - The school curriculum being taught is geared toward all students being able to attend college. Not all students are college material. What about manufacturing? Why are we not preparing our future workers for high paying manufacturing jobs? Again, not all students are college material and we should embrace various options for our children.
Jensen says it best with his statement about changing the mindset of the county and state.
A wise wise man once told me if you always do what you always do, you will always get what you always get.
You can’t expect change and growth by sticking to the status quo as our county has because as we all know, IT’S NOT WORKING!!!!!
By blutoblutarsky, April 27, 2015 @ 12:45 PM
flamingo- Be careful. Although jorn asked you a question, if you ask him one in return and expect an answer you will be called a troll lol
By jorn jensen, April 27, 2015 @ 9:36 PM
Good idea, Scott_Starr. Good idea. I especially like the idea at, say, 15 years, the policy proceeds go to the company.
You ‘get it’ Hazzard. If competing counties utilize KOZ, we must utilize KOZ. And, we have it available. But, like many of the candidates, I say no additional KOZ - fill what we have. Scott’s idea is excellent on the insurance policy - all candidates and sitting commissioners need to be paying attention.
Education - we have a gem with Lenape Tech (I guess, per Denny’s constant correction of me, that Vo is gone from Tech - hey, it IS still vocational training, however you want to shade it) and the coming BC3. We can train, I believe, for any industry that we can get in here. I’d gladly teach heat treating 101. We need to work on passing drug tests a bit, though.
I like your pseudonym - reminds me of my recent trip to Concord, NC. Place is booming - money and work everywhere. And, we, in Pennsylvania used to call THEM hillbillies.
If we keep electing more of the same, we’ll get more of the same results - declining population and increasing taxes on those who remain.
By Flamingo1, April 27, 2015 @ 11:06 PM
@Scott—I am not sure I follow about the insurance policy. Who sells this kind of policy? This sounds like some kind of derivative.
Again, the question—why should manufacturers get a tax break, but not a restaurant, a bakery, a dry cleaner, a jewelry store, a marina, a grocery store?
You might be interested that the governor had proposed lowering the corporate tax rate by half and the Republicans have been cool to the idea.
Jorn—and these vast connections to potential businesses are what? pie in the sky, cheese in the moon and real people? Please explain. And that goes for the others who have claimed they have, “connections.”
By scott_starr, April 28, 2015 @ 12:12 PM
@Flamingo:
I’m not sure who currently writes this type of specific policy concerning taxes and KOZ’s, it’s kind of like a performance bond which many companies underwrite. ( there are sales tax bonds etc. I imagine that it could be written like one of these) it is just risk mitigation like any type of insurance policy. It’s an idea, since people seem to complain about businesses getting a tax break.
( It’s not a derivative because there is no other underlying asset assosciated with it, this is more like a performance bond or a guarantee of performance…)
The major difference, as I see it concerning the businesses you mention is that most of these business are sole proprietor type businesses which fall under a different tax rate ( usually around 3% vs, 9.99% for corporations).
But to be fair, if a way can be figured out to stop someone from “churning” a restaurant or one of the other businesses ( selling among family members), then why not give these people a break as well. (I think this type of business is a little more ripe for evasion than manufacturing).
I would support Wolfe’s reduction in corporate taxes, as long as personal taxes do not rise. ( both should be gone in my opinion).
Also, I would allow KOZ to be mixed use ( I don’t think they are now). Meaning there could be a mixture of manufacturing, retail, services and residences. I don’t ‘know if it would help Armstrong, but it surely could not hurt.