Although most of the discussions about the effects of Keystone Opportunity Zones have centered on the developments of the Cira Centre and the controversy surrounding the Center City locations, many smaller developments are beginning to take shape throughout the University City District.
Most of these areas -- which are predominantly tax-free under Pennsylvania law -- have been designated on Penn-owned land directly through the University's efforts, or are taking place outside of campus boundaries but will likely exert influence over campus life in the future.
"The University has been very much encouraging the development around [itself] to better integrate the campus into the surrounding neighborhoods," Deputy Commerce Director Dwayne Bumb said.
The potential for spurring diverse economic activities in and around campus could be limitless, and officials hope that KOZ will make University City a more prosperous place for business and a more dynamic place to live.
There are numerous sites on the west side of the Schuylkill River that are currently KOZ-designated and are either being developed or will be in the near future. Some prominent KOZ sites include the land currently owned by the U.S. Postal Service-- which Penn is in the process of purchasing -- scattered surface parking lots on Market Street, as well as the building at 3025 Walnut St. which will house WXPN and World Cafe Live!
"The different designated zones are in different stages of development," said Eric Goldstein, executive director of the University City District.
Some projects, like the WXPN and World Cafe Live! building, are projected to be completed by July 2004.
And though Penn has been heavily involved with the KOZ program from the beginning, officials have said that the KOZ would not be used to build academic buildings, but instead to further business development in the area.
"The Commonwealth really thought about it first in the [former Pennsylvania Governor Tom] Ridge administration, and we pushed very much to initiate it," University President Judith Rodin said. "Once the idea was floated, our office of economic development urged the Commonwealth and the city in support of the legislation, and we worked hard to get certain of our properties designated as KOZ properties."
"We can point to over 200 jobs that would be created or retained in University City," Bumb said. "That's before the Cira Centre development goes into construction." But the KOZ are predicted to bring many more jobs and investments to the area in the future.
The development in the University City area has a second key component to it. It is viewed as an important part of the integration process that University officials hope will link their district with Center City.
Bumb said KOZ developments are an opportunity to unify the city and create job-intensive areas with the potential to prevent urban sprawl. He hopes that the KOZ program can aid in the process of developing the area on the west side of the Schuylkill River. He said that there is a possibility of great public benefits arising from the project.
David Yeager, the director of Governor Ed Rendell's Action Team, said that there are "phenomenal opportunities for new and growing businesses throughout West Philadelphia."
Rodin also discussed the possible expansion and improvement of another program called "Keystone Innovation Zones," which is currently before the legislature. Rodin said that Penn was "instrumental" in the advocacy of the new program, stressing the possible advantages of tax relief for developing new technology.
