How CRIZ Can Support Downtown Historic Projects

If you own a historic building in downtown Lancaster, you may be wondering how to make a quality rehab pencil out. Between façade repairs, structural work, environmental checks, and streetscape needs, costs add up fast. The good news is that Lancaster’s City Revitalization & Improvement Zone, or CRIZ, can help close that gap when your project creates new economic activity. In this guide, you’ll learn what CRIZ is, where it fits for historic projects in the Lancaster City Historic District, how it plays with tax credits, and the steps to get started. Let’s dive in.

CRIZ basics in plain English

A CRIZ is a specialized tax‑increment financing tool. It captures a portion of the new tax revenues generated inside a defined zone above a baseline and directs those funds back into the zone. Over a set term, those incremental revenues can repay bonds, reimburse eligible project costs, or fund public improvements.

In practice, a local CRIZ authority or the City, in coordination with the Commonwealth, adopts a financing plan that lists eligible uses and how the revenue capture will be managed. The plan may authorize bond issuance or set up reimbursement agreements for qualifying work. The arrangement runs for a fixed period. The exact timeline and percentages depend on the adopted plan.

The key takeaway: CRIZ is not an immediate cash grant. It is a financing mechanism that uses future incremental taxes created by revitalization to help pay for the public and predevelopment work that unlocks that revitalization.

Why CRIZ fits downtown historic projects

Historic rehabs in the Lancaster City Historic District often carry higher up‑front costs. You may need façade stabilization, structural repairs, utility upgrades, or environmental clearance before you can add new tenants or uses. CRIZ can target those enabling costs so your private investment can focus on the core rehab.

Common costs CRIZ can help

• Public infrastructure supporting reuse, such as sidewalks, lighting, stormwater, and utility upgrades.
• Site preparation and remediation where environmental assessment or cleanup is needed to make the site viable.
• Acquisition, selective demolition for safety, and structural stabilization necessary to make a project shovel‑ready.
• Public realm and streetscape improvements that improve access, foot traffic, and commercial viability.

When a historic building comes back to life with shops, restaurants, offices, or apartments, it generates new taxable activity. CRIZ captures a portion of that growth and cycles it back to the zone to support the project’s enabling costs.

What usually needs coordination

• Reimbursements, not blank‑check grants. CRIZ support is typically structured as reimbursements tied to documented eligible costs and public approvals. Plan for up‑front or bridge financing.
• Stacking with other incentives. If you also use historic tax credits or other grants, you will need to structure the deal so program rules do not conflict.

Working within the Historic District

Being in the Lancaster City Historic District does not prevent you from using CRIZ. It does add a layer of design review and coordination that you should plan for early.

• Local review. Many exterior changes and some site work within the Historic District require review by the local historic preservation commission. Build this into your timeline.
• Consistency with preservation standards. If you plan to pursue federal or state historic tax credits, the work must meet the Secretary of the Interior’s Standards. Align CRIZ‑funded façade and streetscape work with those standards to avoid redesign and delays.
• Documentation and approvals. CRIZ reimbursements depend on documentation. Keep records of scopes, invoices, and approvals to streamline reimbursement.

Pairing CRIZ with historic tax credits

CRIZ can work alongside historic tax incentives when you coordinate scope, timing, and compliance.

• Federal Historic Rehabilitation Tax Credit. Qualified income‑producing historic buildings may be eligible for a 20 percent federal tax credit on certified rehabilitation costs. The credit reduces investor tax liability. It is not a cash grant, and it requires certification through Pennsylvania’s State Historic Preservation Office and the National Park Service.
• State and local programs. Pennsylvania has periodically offered state historic incentives and local grants that can complement the federal credit. Availability changes, so check current options during early planning.
• Other common sources. Projects often blend CRIZ with low‑interest loans from local redevelopment authorities, tax‑exempt or private activity bonds where applicable, brownfield and remediation grants, and commercial debt and equity. Historic tax credits are frequently syndicated to bring equity into the capital stack.

Two practical points guide successful combinations:

• Timing. CRIZ captures and reimbursements follow the CRIZ plan’s schedule. Historic tax credits are realized on a different timeline tied to project completion and certification. Your cash flow plan should account for both.
• Compliance. Coordinate scopes funded with CRIZ and those claimed for tax credits so all work meets preservation standards and program rules. Early alignment avoids conflicts later.

Step‑by‑step for Lancaster property owners

Use this straightforward checklist to explore CRIZ for a project in or around downtown Lancaster.

1. Confirm your location. Determine whether the property is inside the Lancaster City CRIZ boundary. Contact the Lancaster City Economic Development Office, the local CRIZ authority, or the Lancaster County Redevelopment Authority for the official map and the current CRIZ financing plan.
2. Review the plan. Read the CRIZ plan to understand eligible uses, financing terms, and the timeline for captures and reimbursements.
3. Assess eligibility and the gap. Build a preliminary pro forma that identifies your total budget, the financing gap, and line items that could qualify for CRIZ reimbursement. Speak with a municipal or CRIZ finance officer early about documentation and timing.
4. Coordinate preservation approvals. If you intend to pursue historic tax credits, review guidance from Pennsylvania’s State Historic Preservation Office and the National Park Service. Secure necessary approvals from Lancaster’s local historic preservation commission for exterior work.
5. Line up complementary financing. If you plan to use the federal 20 percent credit, engage a historic tax credit advisor or syndicator. Ask about brownfield or remediation grants, local façade programs, and county redevelopment loans that may fit your project.
6. Engage the right team. Typical advisors include a preservation consultant, a project accountant experienced with tax credits, a municipal liaison, an environmental engineer if remediation is needed, and a bond or financial advisor if CRIZ debt is involved.
7. Formalize and document. CRIZ reimbursements usually occur after approval and documentation. Keep clear records, track eligible costs, and obtain required signoffs to support reimbursement claims.

Risks and limitations to expect

Every financing tool has tradeoffs. Plan for these realities so you can keep momentum.

• Not instant cash. CRIZ relies on revenue capture and reimbursement or bond financing. You will need capital for up‑front work or a bridge facility.
• Public process and oversight. CRIZ plans require public approvals. Use of captured revenues is governed by plan terms and bond covenants, with reporting requirements.
• Long‑term revenue dedication. Incremental taxes generated in the zone are committed for the CRIZ term, which reduces those revenues for other municipal uses during that period.
• Eligibility is specific. Not every cost will qualify. Pre‑application conversations with CRIZ staff help you target eligible items and avoid surprises.

Real‑world scenarios to consider

Here are two simplified examples to show how CRIZ can help unlock historic projects in the downtown core.

• Main‑street storefront rehab. You own a contributing mixed‑use building with a compromised façade and outdated utilities. The project adds new ground‑floor retail and apartments above, creating new taxable activity. CRIZ support focuses on eligible public‑facing work like sidewalks, lighting, and utility upgrades, and on structural stabilization. You pair this with the federal 20 percent credit for certified interior rehabilitation of income‑producing space.
• Warehouse conversion to offices. A former warehouse needs environmental assessment, selective demolition for safety, and major site work before build‑out. CRIZ can target eligible site preparation and remediation, along with streetscape improvements to support new tenants. Financing stacks with commercial debt and, if feasible, historic credits once the building and scope meet certification standards.

In both cases, CRIZ helps fund the enabling steps that private lenders are often reluctant to finance, making the overall capital stack work.

Positioning your property post‑rehab

The value you create in a historic building is realized when the market understands it. That means clear storytelling, thoughtful presentation, and targeting the right audience who appreciates provenance and quality.

If you plan to bring a revitalized property to market, you benefit from premium photography, complete floor plans, and strategic distribution that highlights both the craftsmanship and the location advantages within the Historic District. You also want someone who can speak fluently about build quality, code compliance, and the preservation process when buyers have technical questions.

If you are exploring a sale or lease‑up strategy for a historic property in Lancaster City, let’s talk about timing, pricing, and the marketing plan that fits your goals. Schedule a Private Consultation with Unknown Company to discuss your next steps with a local, results‑focused perspective.

FAQs

What is a CRIZ and how does it help historic projects in Lancaster?

• A CRIZ captures new tax revenue generated inside a designated zone and uses it to reimburse eligible costs or repay bonds for improvements that enable revitalization in the Historic District.

Can homeowners use CRIZ funds for personal home renovations in the Historic District?

• CRIZ programs primarily support commercial and mixed‑use projects that generate taxable activity, so owner‑occupied residential renovations are less commonly eligible.

How do CRIZ reimbursements typically work for a Lancaster project?

• You document eligible costs tied to an approved plan, then receive reimbursements or benefit from bond proceeds serviced by future incremental tax captures.

Can I combine CRIZ with the federal 20 percent Historic Rehabilitation Tax Credit?

• Yes, many projects pair them, but you must align scopes, timing, and preservation standards to meet both programs’ requirements without conflicts.

How long does it take to secure CRIZ support and receive funds?

• Timelines vary, but you should plan for several months to a year for approvals, agreements, potential bond issuance, and reimbursement processes.