KOZs were created by the state in 1998 to stimulate development of underutilized areas. These specially designated areas throughout the state are virtually exempt from state and local business taxes until 2013. Prior to passage of the new KOIZ bill here, there were 12 KOZ designations covering an aggregate of approximately 500 acres throughout the city.
James J. Cuorato, city commerce director and a member of the board of Philadelphia Industrial Development Corp., testified at the city council's public hearing that the new KOIZ designation would create approximately $1.7 billion in new construction projects over the next 10 years. In addition, he projected an annual return to the city of approximately $20 million in wage taxes.
The four sites are now largely vacant and currently produce just $170,000 a year in real estate tax revenue.
Cuorato's economic impact analysis was developed by PIDC's government relations staff, which worked with the city's commerce department and the property owners. PIDC is the owner of the naval business center, which encompasses about 6.5 million sf of buildings formerly occupied by the U.S. Navy.
Amtrak's 562,000-sf 30th St. Station was built in 1934. It is Amtrak's corporate headquarters and the second most active railway station in the country.
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