Allentown NIZ returns with record tax revenue – The Morning Call
Surviving the COVID pandemic with a smaller-than-expected drop in total tax revenue, Allenttown’s The zone of improvement of the microdistrict returned with a record for 2021.
The Office for the Development of the Environmental Improvement Zone Alentovna said on Wednesday that businesses in a one-of-a-kind urban area of tax subsidies received a record $ 94.5 million in state and local tax revenues in 2021, an increase of more than 20%. with $ 78.3 million in 2020. The latest figure was 9% less than in 2019.
About $ 22 million will go to the State Revenue Department to service the over-indebtedness.
The 130-acre downtown area along Hamilton Street and Lehigh Quay brought in $ 22 million in state taxes before the NIZ went into effect in 2009. ANIZDA is required by law to repay this full amount if NIZ receives sufficient income, in excess of what is required to receive the debt, as has been the case for four of the last five years.
NIZ allows developers to use virtually all state and local tax revenues (excluding property taxes) created under their new projects to repay construction loans.
The bulk of the revenue in 2021 went to City Center Allentown, totaling $ 44.4 million, which will go to repay the developer’s debt. Jaindl Enterprises received $ 5.1 million for its Waterfront project, and Alvin H. Butz Inc., which has the Butz corporate center, received $ 468,768. Other projects that included a total of $ 50.8 million included the Americus Hotel, Loft I on the Riverfront, Sacred Heart of St. Luke, and Shelter 634.
In his report to the authorities, ANIZDA CEO Steve Bamford said activity had intensified in the spring.
A daily update for the Lehigh Valley business person.
“It was a very busy April,” Bamford said. “We started a $ 2 million street landscaping project when the mayor (Matt Turk) took a sledgehammer to a bench during a press event. We had a breakthrough for Da Vinci Science Center and cutting the ribbon for Sports and social restaurant “.
Bamford also said there were representatives of Moody’s Investors Service in the city. Two government bond yields NIZ were lowered Moody’s in December 2019. Moody’s responded negatively in a report published in December 2020.
“We also accepted Moody’s ratings and they were impressed with the progress we have made,” he said.
On another issue, ANIZDA approved the transfer of $ 4 million from the additional fund to the surplus account for use in public amenities such as the Hamilton Street project.
The government has also made little change in how its members will be selected in the future as Allentown gets an additional state senator and moves from two to three state representatives. For each of their elections to the council, senators and representatives will have to agree on their respective choices.
The number of members of the government will remain at nine.
Morning reporter Evan Jones can be contacted at firstname.lastname@example.org.