New and expanding businesses may be getting a break in Grove City after the Grove City Area School Board approved a resolution to go ahead with a proposed Keystone Opportunity Zone in the borough.

Their 7-2 vote followed a unanimous decision by Grove City Borough Council March 17 to advertise their intent to designate the former Cooper Bessemer property a KOZ. The property's northern boundary is Lincoln Avenue and it's southern boundary is the railway tracks.

"By doing something, we'll create a better atmosphere than if we do nothing," said board member Robert Montgomery. "The risk we are about to vote on is worth the risk for the community," said board member Doug Thomas.

The risk the school board was discussing at Monday's meeting was the prospect of making approximately 26 acres of borough property tax exempt for seven years under the KOZ.

Tax exempt status would possibly draw businesses and business expansions into the area, but would mean a loss of $48,000 a year in potential real estate taxes to the borough, school district and county. The school district would take the biggest hit -- about $33,000 a year, according to school district business manager Valarie Phillips.

Grove City borough manager Terry Farren said Grove City would lose potentially about $2,500 per year during an interview Monday morning. The county would lose about $12,000.

The borough, school district and the county have to sign off on creating a KOZ.

Most members of the school board focused on the gain Monday night.

"Here we have the opportunity, the somewhat painful opportunity, to affect our community in a positive way," Thomas said.

"I would think that possibly 200 more people working close to downtown ... would benefit the downtown businesses greatly. That could be a plus for Grove City," said board member Jane Rath, tying the zone to the borough's downtown revitalization efforts.

Board president Stephen Gould asked about a projection of possible wage tax money coming back to the district. According to superintendent Robert Post and the business manager, if 100 people were working at jobs in the KOZ and were paid $25,000 each, approximately $1,200 annually would come back to the district.

"But after seven years, they should pay more (real estate) taxes," Thomas said.

Board member James Crow, who along with Sue Schepp, voted against the proposed KOZ, was concerned that having the zone in the borough might not be the best decision.

"I do not feel that Cooper Cameron property will be the salvation of the downtown revitalization. I wish you luck, but I am not going to stand behind the vote on this," Crow said. "We have had downtown businesses that have failed on their own money," he added.

The next two steps for final approval of the zone is a decision by the county commissioners and the final decision of the borough council next Monday.

County Commissioner Olivia M. Lazor seemed to favor the distinction. "We try to be business-friendly county," she said Monday afternoon, when asked about the stand that the commissioners would take. "It would be a little more of an incentive for businesses."

Grove City Borough Council President Randy Riddle favors making the Cooper site a KOZ. "We see jobs leaving Mercer County right and left. We felt we needed to give the ownership at that site somewhat of a competitive edge."