Gov. Tom Wolf has signaled that the state is going to restrict the Keystone Opportunity Zone program, which Coatesville had hoped would help with new development in the area, writes Angela Couloumbis for the Philadelphia Inquirer.

The program exempts owners of approved properties, usually industrial or commercial buildings, from some local and state taxes for around a decade.

Coatesville had been hoping that several properties, including a privately owned 88-acre parcel, would be included in the program. The plan was to encourage a new residential development on that lot and on others.

However, despite Gov. Wolf expanding the program last summer, word came down that the administrators would not be authorizing new zones. Following that, Coatesville received a rejection letter at the end of November.

In fact, the KOZ program seems to be the latest casualty in Pennsylvania’s deepening financial woes, as Wolf continues to grapple with a projected budget deficit.

“We were all holding out hope for the KOZ to help developers think differently about Coatesville,” said Sonia Huntzinger, the Chester County economic development administrator who focuses on Coatesville.

Read more about the KOZ program in the Philadelphia Inquirer here.