$2M in CRIZ Funds Coming Back to Tamaqua; How Pottsville Missed Out

Tamaqua learned this week that more than $2 million is being returned to the community this year because of its participation in the City Revitalization and Improvement Zone (CRIZ) program.

In total, $2,000,819.11 is being returned to Tamaqua. The money comes from new tax revenue generated within the CRIZ.

More than $16 million in CRIZ funds are being returned to communities statewide participating in the program, Bethlehem and Lancaster along with Tamaqua.

“Since its inception, the CRIZ program has delivered a total of nearly $102 million to participating communities, helping them to attract development, revitalize their downtowns, and bring new jobs to their regions,” Dept. of Revenue Sect. Patrick Browne says in a statement accompanying the distribution of CRIZ funds. “This program is a proven model that has been a critical tool for growth in Bethlehem, Lancaster, and Tamaqua. Recognizing this success, Gov. Shapiro worked to reopen the program and open the door for more communities to apply. That historic step was a gamechanger for both Erie and Reading, and we’re excited to see the program support economic development in both cities.”

Conversely, this could have been a pivotal year for Pottsville as a CRIZ community but a flawed application has the city hoping another application window opens in the near future, with no guarantee it will.

What is CRIZ?

Outside of Tamaqua, there has been a lot of discussion about CRIZ in Pottsville this year. It’s been a hot-button issue for Republican challengers in the upcoming 2025 Schuylkill County Municipal Election.

They accuse their opponents of fumbling the application process last year and the city missing out on tens of millions of dollars over the next 30 years.

So what, exactly, is CRIZ?

CRIZ helps municipalities pay for major redevelopment projects without raising taxes. It does this by letting a city keep some of the new state and local tax money generated within a zone of up to 130 acres and use that money to pay off the cost of building or improving properties in that area.

When a CRIZ is created, the state sets a baseline year to measure how much tax revenue the area already produces. Two new CRIZ designations were awarded in 2024, to Reading and Erie. That could have included Pottsville, too, if it weren’t for the city’s rejected application last year.

As new development brings in more business activity and jobs, the extra tax revenue that didn’t exist before is redirected into a special fund. That fund is used to repay loans or bonds that financed construction, infrastructure, and other improvements within the zone.

CRIZ designation ends once the debt is repaid or after 30 years, whichever comes first.

CRIZ in Pottsville

In recent discussions with The Canary, state and local officials have lauded the benefits of the CRIZ program in Tamaqua. Those same officials have also been critical of the missed opportunity to be awarded CRIZ designation in Pottsville.

The city applied for the CRIZ program on Oct. 18, 2024, but that application was denied by the state’s Dept. of Revenue due to numerous deficiencies.

The Canary obtained a tranche of documents through a Right to Know request from the City of Pottsville related to its CRIZ application and the internal discussions leading up to the application and its denial.

In a lengthy denial letter, dated Dec. 30, state officials rejected Pottsville’s application for the CRIZ program because the city’s Redevelopment Authority was not legally qualified to serve as a CRIZ contracting authority.

Rather than establishing a new CRIZ authority, Pottsville attempted to use its Redevelopment Authority to act as the CRIZ authority.

The Redevelopment Authority of the City of Pottsville was incorporated in 1956 under the Urban Redevelopment Law, but to qualify for the CRIZ program it would need to be established under Pennsylvania’s Municipality Authorities Act. Although the authority’s bylaws were updated in 2024 to include CRIZ powers, its incorporation documents were never amended with the state to reflect that change.

The Dept. of Revenue and other reviewing agencies also found the city’s application incomplete.

Required items such as a full-size color GIS map, a detailed parcel report listing properties in the proposed zone, and physical copies of the full application were missing. Without that information, reviewers could not verify parcel data, acreage, or whether any properties overlapped with restricted designations like Keystone Opportunity or LERTA zones.

The proposed plan itself lacked financial and economic details. It did not include a feasibility study, revenue projections, or a pro forma analysis showing how development would generate enough new tax revenue to support CRIZ funding. Reviewers also said the plan did not clearly identify specific projects or their expected impact, and it failed to address the required certification of local taxes by city taxing bodies.

The state encouraged Pottsville to fix these issues and reapply in the next round, suggesting the city create a new authority specifically formed under the correct statute to administer the CRIZ program and to strengthen its financial and project documentation before resubmitting.

That next round of CRIZ applications being accepted has not been announced.

Subscribe to Coal Region Canary

Get email updates from Coal Region Canary by becoming a subscriber today. Just enter your email address below to get started!

Support Coal Region Canary

Like our reporting and want to support truly local news in Schuylkill County? Your small donations help. For as little as $5, your contribution will allow us to cover more news that directly affects you. Consider donating today by hitting the big yellow button below ...