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Washington County officials pursuing tax incentive program to spur airport development

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Washington County officials are applying for a state program that would offer tax incentives for business development at the county’s airport in South Franklin Township.

The commissioner during Wednesday afternoon’s voting meeting unanimously approved an application to the state Department of Community and Economic Development to designate up to 50 acres of the airport property for businesses development.

“It’s important because it’s really going to accelerate private investment and job creation at the airport,” said Bob Griffin, executive director of the county Redevelopment Authority, which oversees management of the property. “It will help sustain the operations of the airport.”

The state Legislature passed Act 53 in July to allow for the “Airport Land Development Zone” that gives businesses a $2,100 annual tax credit for every job created for up to 10 years. The law was designed to spur economic development around commercial and non-commercial airports, although there is a finite amount of acreage that the DCED will approve for the program, making the application process competitive.

Officials in Washington County have set aside 45 acres north of the runway and five acres south of the airstrip for the ALDZ tax incentive program, Griffin said.

“Once that’s approved, we’ll have this incentive in place to essentially accelerate private development in and around the airfield,” Griffin said. “More investment in the airport will generate more revenue for the airport through land leases and commercial leases.”

Griffin said they already have prospective businesses interested in leasing land at the airport, but the tax program would provide an even greater incentive to close the deal with potential developers. County officials have been working over the past few years to clear land and build infrastructure on the property north of the runway to prepare for future development.

“We do have a number of groups that have expressed interest, but we think the ALDZ will accelerate and help move that process forward,” Griffin said.

But it’s not a guarantee that Washington County will be approved for the program. There are only 2,000 total acres eligible for non-commercial airports, such as the one in Washington County, meaning the entire 50 acres being requested for the designation might not be approved. Larger commercial airports can designate up to 300 acres for development, although there are only 2,000 total acres available for that program, as well.

Other neighboring counties have already submitted applications for the program or are preparing to do so.

Two weeks ago, the Fayette County commissioners approved their application to zone four sites at Joseph A. Hardy Connellsville Airport on Route 119 in Dunbar. Officials in Greene County are also reviewing plans through the tax incentive program to develop county land on the northern side of the airport near Progress and EverGreene drives in Franklin Township.

“We’re looking at that program to see how we fit,” Greene County Chief Clerk Jeff Marshall said.

According to the law, companies must maintain operations at the location for at least five years or be required to refund the entire amount of the tax credit. The program runs until 2041.

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