Florio Perrucci Steinhardt & Fader, LLC associate Seth R. Tipton, Esq. recently obtained an approval for Pennsylvania’s first City Revitalization and Improvement Zone (“CRIZ”) project in Bethlehem, Pennsylvania. The project involves the restoration of a formerly-vacant bank building into a modern distillery that will produce craft spirits on site.
Modeled after the Allentown Neighborhood Improvement Zone (“NIZ”), the CRIZ legislation, 72 P.S. § 8801-C through 8881-C, permits selected third class cities to designate 130 acres for “economic development and job creation.” Following approval by the local CRIZ Authority, a project in the zone can have certain eligible taxes returned each year from the state and local taxing authorities, and use those funds for construction and the payment on debt service for construction or renovation. Seth and the Firm overcame a variety of novel issues to develop a project structure that incentivizes both the developer and the tenant to reap the potential benefits of CRIZ participation, and ensures adequate financing for the project.
Seth R. Tipton is an associate in the Firm’s Bethlehem, Pennsylvania office and concentrates his practice in corporate, commercial real estate, business and healthcare law. Prior to joining the firm, Seth served as law clerk to the Honorable Ariel A. Rodriguez, Presiding Judge of the New Jersey Appellate Division.
For Seth's full professional biography click here. For more information on the Firm's Redevelopment, Construction & Public Contracting, Real Estate & Land Use, and Corporate & Business Law practice groups click here.