CLEARFIELD – The Clearfield County Commissioners approved a resolution Tuesday that authorized the submission of an application for a new, tax-free Keystone Opportunity Zone (KOZ) in Girard Township.
This is a part of a local economic development initiative to attract a data center park to locate into the area that’s adjacent to the former Girard-Goshen Elementary School.
KOZs are designated zones where businesses can locate into and have a tax-free status (state and local) for 10 years.
Prior to the board’s vote, Margie Guido, chief executive officer of Cirrus Holdings LLC, presented plans for the proposed Cirrus Clearfield Data Center Park in Girard Township. She was joined at the commissioners’ meeting by Derek Walker.
According to Guido, state legislature has created 12 new Keystone Opportunity Zones, and they have been working through an application process to compete for one to be located in Clearfield County.
As a result, resolutions must be passed by Girard Township, Clearfield Area School District and Clearfield County before they can submit their application. Their application deadline is Oct. 1, according to Guido.
She said both Girard Township and the Clearfield Area School District have already approved their own resolutions to authorize the application for the new, tax-free KOZ for the proposed data center park.
The county commissioners approved their resolution by a 2-0 vote Tuesday. Commissioner Mark B. McCracken was absent from the board meeting.
Now once the KOZ application is completed and submitted by Clearly Ahead Development, the county’s economic development corporation, it will go to the state Department of Community and Economic Development for consideration. It was noted that the KOZ will not go into effect unless it receives state approval.
Guido, who is from the DuBois area, said she had learned about a growing industry for data centers. She said for the past three years, she’s been working to build an industrial park for data centers in this region.
According to her, data centers are huge warehouse-like buildings housing computers to service the growing need for data, for artificial intelligence found in smartphones, tablets, global positioning systems, etc., and directly related with the growth of cloud computing.
She said their first goal is to attract four million square feet of data centers to the park. It would more than likely be a number of buildings versus one large building, operated by multiple data companies and built out over multiple years.
Guido said as a rule of thumb, similar projects have resulted in 300 construction jobs for a period of years and long-term employment, excluding construction, of 120 jobs per million square feet.
“The spectrum usually ranges from maintenance through technicians and engineering. Cirrus will develop the land and we intend to use a Pennsylvania construction company,” she said.
However, she also told the commissioners that Pennsylvania has a problematic tax structure that is unattractive to businesses with it levying sales and use tax on the equipment. “It’s a very big number to the companies that want to build data centers,” Guido said.
“So instead of building here, they shift to neighboring states.” She pointed out that Virginia is the capital for this industry and Ohio is now enjoying rapid growth. “We have failed to attract even one despite the fact that we have an abundance of energy, land, water and a very favorable climate.”
A Keystone Opportunity Zone, she said, would solve the tax problem by eliminating the state and local taxes for businesses that locate there, beginning Jan. 1, 2017 and continuing for 10 years. Currently, the annual county taxes on the parcels are $701.80 because it’s a reclaimed strip mine.
“The loss of revenue to the school district is minimal,” Guido said. “But the potential for job creation at the site and local businesses, including restaurants and other services, is tremendous.”
Guido said because of an anticipated high demand, they are also planning the development of a second location in the Brockport area. “It will support employment in the Clearfield region, as well,” she said.