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Fayette County receives Keystone Enterprise Zone designation

By Garrett Neese 3 min read
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Keith Chatley of Hranec gives a tour to a group including state Rep. Charity Grimm Krupa during the grand opening for the company's new manufacturing facility in German Township in May. Fayette County recently received a Keystone Economic Zone designation, aimed at facilitating new or expanded businesses along major routes in the county. [Garrett Neese]

A new state designation will give businesses more incentive to locate or expand in Fayette County.

The county was recently named a Keystone Enterprise Zone through the state’s Department of Community and Economic Development. The five-year designation follows more than three years of work by DCED, Fay-Penn Economic Development Council, the Fayette County Board of Commissioners and the Fayette County Redevelopment Authority.

Companies that open or expand along those routes may be eligible for significant tax incentives that would offset their state taxes.

Fay-Penn Executive Director Andrew French said the businesses could receive a tax credit equal to 25% of the amount they invested through improving or expanding buildings within the zone, up to $500,000. Eligible projects include rehabilitation, improvements to land or buildings, expansion, architecture, engineering and acquisition.

The county has assets already, French said: ample land for manufacturers and agriculture, and some of the best tourism draws in the country. But they need to be paired with other incentives to reverse a trend of economic decline where “people aren’t knocking the doors down to get into Fayette County,” French said.

“We want to begin going outside of Fayette County, say ‘Hey, this is why you should move your business to Fayette County,’ whether that’s looking over to the next county, the next state, or even internationally,” French said.

The county had received an enterprise zone designation in the past, concentrated around Route 119. This time, Fayette officials wanted an expanded zone, but not so widespread that it would affect the character of the county, said board Chairman Scott Dunn. Instead, they sought to encourage development along what Dunn called the county’s “corridors of commerce” — Routes 21, 40, 43, 51 and 119.

“If you want to bring truck traffic in, we want truck traffic on the corridors where you already have the roadways,” he said.

Those roads run throughout the country, crossing through 24 of the county’s 43 municipalities. County Economic Development Coordinator Mark Rafail and Fay-Penn Director of Business Development Lori Scott worked with the state as well as the cities, boroughs and townships along the routes — all of which signed on.

The incentives do not affect tax revenues for the county, schools, or local municipalities, Dunn said.

Dunn’s already talked to a few companies who hadn’t known about the incentives.

“It’s a positive thing,” he said. “It’s a tool in the toolbox, and it’s something that we’re going to make sure that everybody we talk to knows.”

The Keystone Enterprise Zone designation will last until May 1, 2031. Businesses interested in the program can contact Rafail at mrafail@fayettepa.org or Scott at Loris@faypenn.org.

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