Created by Gov. Tom Ridge in the 1990s to encourage development of abandoned, often long-idled industrial property, the Keystone Opportunity Zone (KOZ) is a useful tool to help bring new life to normally undesirable land. In Philadelphia this week, a controversy is brewing over plans to provide KOZ tax breaks to build a new 60-story skyscraper intended to serve as headquarters for cable giant Comcast. Liberty Property Trust wants to build the office tower for Comcast and other corporate tennants.

A new skyscraper might be a nice addition to Philadelphia's skyline and image, but many questions are being raised about the appropriateness of this proposal, which is backed by Gov. Ed Rendell, a former mayor of Philadelphia.

Comcast, which made news recently with its $66 billion bid to buy Disney Corporation in a hostile takeover, seems to have the financial wherewithal to build a new office tower without help from Pennsylvania taxpayers.

Another problem, revealed by current owners of Philadelphia office property, is that the city does not have the demand to fill the 30 floors of the new office tower not to be occupied by Comcast. Understanding that the group that funded the study is comprised of the owners of 26 office buildings, potentially harmed by the new building, the issue is still important to consider.

The 52-page report commissioned by the group suggests that 20,000 new jobs would have to be generated in Philadelphia to fill the new office tower. With employment in the city falling to around 170,000 from nearly 205,000 in 1990, the city hardly seems on a growth path to require a new 60-story office tower - especially one subsidized by million dollars of taxpayer money.

The owners of existing buildings understandably have a problem with a multi-billion dollar company benefiting from state-funded tax breaks to build a building that will put financial pressure on all other owners of office space in the city through what will essentially be taxpayer subsidized rent.

Additionally, center city Philadelphia is hardly the type of area most people think of when they think of distressed properties needing government aid to attract developers. And after Comcast's recent $66 billion offer for Disney and its 2002 purchase of AT&T Broadband for $60 billion, there is little evidence of financial need.

The fact that Rendell's former chief of staff, David Cohen, is now executive vice president at Comcast has brought more scrutiny to this proposal. Whether real or imagined, the appearance of insider advantage raises more red flags about this deal.

Given the facts, this proposal in Philadelphia fails the smell test on multiple levels.

Comcast's recent multibillion dollar takeover activities suggest the company, or its would-be development partner, have no legitimate financial need.

Property in center city Philadelphia, just a few blocks from City Hall, hardly fits the description of "blighted" property for which the Keystone Opportunity Zone was created to help develop. Tax breaks should be reserved for land that would otherwise not be developed. That is not the case for this property.

While Rendell might like to see a gleaming new skyscraper in his hometown, this deal does not look like an appropriate application of Keystone Opportunity Zone tax breaks, which are quite legitimate in other situations. This proposal looks more like a rich corporation with convenient connections to the governor trying to save a few million dollars on the backs of Pennsylvania taxpayers.

The deal doesn't look good and should not move forward.

That's not to say that the skyscraper should not be built. But if it is built, it should be built on its own merits - as a business investment, not as a taxpayer subsidized deal.

- J.L.W.III