Keystone Innovation Zone on county agenda
The Fayette County commissioners will vote today on ratifying a partnership with Fay-Penn Economic Development Council regarding the Fayette/Washington Keystone Innovation Zone, a program designed to promote and foster collaboration among institutions of higher education, their surrounding communities and local businesses. The commissioners were sent a letter earlier this month by Fay-Penn President/CEO Michael Krajovic asking them to sign a memorandum of understanding in support of officially establishing the KIZ, which when established, can receive up to $750,000 in grant funds.
Although the item is on today’s agenda, it is a ratification since two of the three commissioners have already signed off on it. Commissioners Vincent A. Vicites and Joseph A. Hardy III have already given their written approval, while Commission Chairwoman Angela M. Zimmerlink has not.
According to an official Web site, the idea behind the program is for the Department of Community and Economic Development to provide grant funds to community/university partnerships to generate job growth through tech transfer and entrepreneurship. It is focused around campuses and the property near colleges and universities.
Vicites said he is in support of the program because Fayette has to compete with other counties across the state for similar state programs and he doesn’t see anything wrong in supporting such a venture.
“We have to have every incentive available to attract jobs,” Vicites said. “If we don’t get involved with the KIZ, we won’t have the opportunity other counties do.”
Vicites said the KIZ program, through the state DCED, is a great opportunity involving higher education, which is designed to expand and develop employment efforts. Vicites said a study is being done first and signing the memorandum is a step in the process to support the effort.
Zimmerlink said Wednesday she is against the program and others like it, saying it has been proven that these programs do not work. “Gov. Rendell’s economic development stimulus program for Pennsylvania continues to fail. These programs take money from us the taxpayers and then the government and bureaucratic agencies redistribute it to others as they see fit, under the guise of economic development,” Zimmerlink said.
“Under both the Democratic and Republican leadership, Pennsylvania has been one of the top five states in spending in these economic development schemes yet continues to rank in the bottom five in growth yet they continue down this path,” added Zimmerlink.
Zimmerlink said the KIZ is “just another corporate welfare program, which gives tax breaks to selected businesses and now adds the colleges and universities to share in the money after the economic development agencies get their share.”
As she has in the past, Zimmerlink said endeavors to bring jobs should be spent on other efforts. “Rather than continuing to redirect our tax dollars to these proven ineffective taxpayer subsidized programs, our governor and state legislators need to lower taxes for all Pennsylvania businesses and individuals because we can decide for ourselves how best to spend and invest our money,” Zimmerlink said.
A spokesman for Joseph A. Hardy III said Hardy had no comment, but will be available today to discuss the issue.
Once approved, the KIZ partnership will include Fay-Penn, Penn State Fayette, California University of Pennsylvania, Washington and Jefferson College, Fayette and Washington counties and the Redevelopment Authority of the County of Washington.
Krajovic said Wednesday that program was launched five years ago by the state through the DCED. Krajovic said to date, Fay-Penn has received $25,000 in matching funds in addition to $25,000 from the state for a planning grant for a KIZ.
Krajovic said Fay-Penn has been seeking memorandums of understanding from businesses, legislators and other agencies in preparation for submitting an application for “full designation” of a KIZ. He said the application would be sent as soon as possible.
While there is no limit to the number of KIZs that can be established, all KIZs must be established on or before July 1. Funding availability will also impact the number of KIZs that are established, according to the DCED.
The amount of money that can be received is a maximum for the first year of $250,000. Declining funding will be given in following years, and operations will be required without state funds after three years. Projects and companies in the KIZ are given priority reviews under various DCED Programs, according to the DCED.