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Wednesday, June 11, 2008

NorCo Council Has Special Meeting Tonight to Take 500 Acres Off Tax Rolls

Northampton County Council last week tabled a proposal to approve a General Purpose Authority financing plan for the development of a whopping 500 acres near Route 33 and Freemansburg Avenue in Bethlehem Township. St. Luke's Hospital has long planned to build a medical center on 200 acres. But now the hospital also wants to purchase another 300 acres across on land previously targeted for the Summit lifestyle center.

If Northampton County approves, this essentially takes 500 acres off the tax rolls. It's considered prime development land and was until very recently prime farm land. Amazingly, we are permitting one entity to develop greenfields, tax free, while simultaneously giving farmers money to preserve their farms.

We're burning the candle at both ends, which makes no sense.

Well, once the money bags who run St. Luke's got word that someone has questions, they demanded that financing package be approved pronto. So council prez Ann McHale quickly scheduled a special meeting for tonight. According to the legal notice published on Monday, "The purpose of the meeting will be to review the General Purpose Authority - St. Luke's Hospital project."

See if Northampton County Council will ever schedule a "special meeting" for the homeless or the hungry or for property owners being driven out of their homes. Money talks.

22 comments:

Anonymous said...

Bernie, is it true that there would be some retail/living space within the hospital campus on the additional acreage? Are they asking for tax free on that as well?

The last thing I am is a pro-tax person, but they should at least make it up to the community/county in some other way. I'll be interested to see if they have some kind of proposal about that. The county and township should make that part of the deal at a minimum.

Bernie O'Hare said...

Lady Rep, That's my understanding. Or the hospital may just hold the property and flip it when the market heats up. Beth Tp did a zoning change for the Summit, not a nonprofit. It will lose a lot of tax revenue.

michael molovinsky said...

assuming they build a hospital, although perhaps free from real estate taxes, it will provide hundreds of high paying jobs serving a true community need. open land preservation awards the owner almost as much as selling it, plus reduced real estate taxes.

Blah Society said...

Any idea how much the Easton Hospital will suffer as a result of the proposed St. Lukes campus?

Anonymous said...

so, why did the GPA sheperd it through?

Anonymous said...

Done deal. Wired up. Ready to go.

SSDD at NorCo Council.

They have no serious political opposition and act with the impunity to which they've grown accustomed and can almost certainly expect to continue.

Anonymous said...

Ann 'Good Guys Finish Last' McHale personifies pay to play. I am sure she got her marching orders on this one. Hopefully County Council makes sure there are no viable 'taxpaying' businesses out there for this land.
The entire point of the 33 corridor/Freemansburg exit was to develop and raise tax revenue. The economy is off now, but as always it will cycle back and that is still prime development land.
Great, so now more non-taxable hospital expansion. What is the deal with buying the land and just sitting on it?
Where is Stoffa on this issue? Could he at least have an opinion? Hopefully County Council waits to get more info before moving on this Queen Ann initiative. More bungled government from the land of incompetence.

Lighthouse said...

1. why is it the government's responsibility to float a bond in an amount not to exceed $175,000,000 for St. Luke's?? If the market supports the need for yet another hospital expansion, why doesn't St. Luke's fund it?

2. the land is not Zoned for it. The Township updated their Comprehensive Plan and Zoning Ordinances in 2004 in part to accommodate a St. Luke's campus on the west of Rt 33, and major tax revenue generating development on the east side of 33. With St. Luke's buying it all, the danger if it should be developed tax-exempt is that it would still bring the traffic and demands on municipal services any development would bring, without generating the revenue.

3. Combine the above, and you have a County government floating a bond that put a burden on the twp taxpayers who will have to pay for those increased municipal services, without the tax benefit of development to pay for it.

4. However, why would the county float a bond for St. Luke's when St. Luke's does not even have the Zoning to do what they want? What happens if they don't get the zoning changes? After all a 2004 Comprehensive Plan expresses their current vision for planned development.

I am curious how the County voted tonight.

Anonymous said...

MM - I agree with everything you say except that I wonder if it's going to fill a true community need. Btw/ LVH and St. Luke's, there has been $100's of millions in new facility construction / existing facility rehabilitation in the Lehigh Valley.

Do we have a true need, or is this simple one-upsmanship?

Anonymous said...

Everyone is pointing out about the employment taxes, the boost to the local economy, etc. Sure all possibly true. Here is the real question? Will they build it if they are still taxed like the rest of us?

If they answer is, yes. Then why wheel and deal, it's already a win-win?

O_o

michael molovinsky said...

anon 7:54, i believe sacred heart will not be much longer. in addition to both (LVH&ST.Lukes) likely being the only regional hospitals, the boomers are coming, and they will need beds and related medical art offices. one only need look at the office park across from LVH on cedar crest to see the future. the rt. 33 campus will also service the poconos

Bernie O'Hare said...

Well, you may have already read this online. County Council approved the funding scheme 8 to 1. The sole dissenter is Ron Angle.

Anonymous said...

Michael, I agree Sacred Heart is not long for thsi world as an independent - with the $$ LVH and St. Luke's have put into their Allentown facilities, Sacred Heart's demographic base has been squeezed into true downtown Allentown, and their customer mix has many people without insurance coverage.

I was not surprised Sacred Heart backed out (for now) from LVH - too many of the docs at Sacred Heart went there to get away from Elliot Sussman, and they don't want to go back to him.

I'm not familiar with healthcare facilities in the Poconos, but what you say makes sense from that perspective, including the boomers needing care. I'm more a Lehigh County guy so I don't have a good handle on that information.

An awful lot of money is going into healthcare in this market, I hope it will work.

Anonymous said...

there appear to be some misconceptions about the bond involved. the bond issued by the GPA was on behalf of St Luke. it is not being paid by taxpayers, but rather, the hospital itself. the GPA is merely the issuing authority. i believe (but Bern will correct me if i'm wrong) Stoffa is chair of the GPA.

all of this underscores how important it os to redevelop our brownfields, so as to leave our undeveloped areas undisturbed as long as possible

Lighthouse said...

Anon. says: "all of this underscores how important it is to redevelop our brownfields, so as to leave our undeveloped areas undisturbed as long as possible"

How can prime real estate off of 33, that had previously been farmland before the proposed Summit, be labeled "brownfields"?? Old Steel property is brownfields. If the Summit, now St. Luke's, site is "redeveloping brownfields" then I have some "ocean front property in Arizona" to sell you.

As to the GPA, I may be wrong, but I would assume that its ability to issue bonds is not unlimited. Why not have utilized that $175 million dollars for real RE-development?

Bernie O'Hare said...

Anon 7:24 is right. The GPA fgunding scheme is NOT guaranteed by NC taxpayers. I believe that scheme was for the 200 acres originally purcahsed and had nothing to do with the additional 300 acres.

But this 500 acres combined is probably both the best development site in NC and best farmland in Northampton County. Look at who has won out. So much for open space preservation.

All these yahoos will next propose that we float bonds to buy islands of green in a sea of sprawl, but they're not really interested in preserving greenfields, not when there's money to be made.

Anonymous said...

I cannot figure the math. They get green space tax free, while our taxes are gobbled up to preserve green space?

And only Angle saw something wrong with this?

What was the hosptial threat, "Oh yeah you don't give in, we'll still make our money and pay taxes. So there, give it to us tax-free!"

O_o

Anonymous said...

It's been pointed out a few times in this post, but bears repeating - hospitals are great employers in an area like this. Very stable, employ a lot of people, etc.

One of the reasons this area has not been impacted economically as much as other areas of the country is our major employer base - LVH, St. Luke, PPL, Air Products, etc. are all very stable.

Bernie O'Hare said...

O_o,

I'm going to do a new post about this tomorrow to clarify some of my own misunderstandings. I was under the impression these 500 acres are off the tax rolls. They are not. Even the 200 acres where St. Luke's plans to build medical facilities is still being taxed. How the property is taxed in the future depends on what will be built there.

I still think Angle was right fro two reasons: (1) the hospital is being allowed to sell tax-exemot bonds to purchase this property. This guives them a leg up on the private sector, even when they are buying something they intend to develop; (2) I don't like the "special meeting" to accomodate a collection of blue bloods when that is never done for anyone else. I would vote against this proposal for that reason alone.

Anonymous said...

mystic:Anon. says: "all of this underscores how important it is to redevelop our brownfields, so as to leave our undeveloped areas undisturbed as long as possible"

How can prime real estate off of 33, that had previously been farmland before the proposed Summit, be labeled "brownfields"?? Old Steel property is brownfields. If the Summit, now St. Luke's, site is "redeveloping brownfields" then I have some "ocean "


um, it WAS a reference to the steel property. e.g. redevelop brownfields more , and there is less pressure on greenfields.

Bern, is Stoffa the Chair of the GPA? and if so, did he support this?

Bernie O'Hare said...

Bern, is Stoffa the Chair of the GPA? and if so, did he support this?

I believe he is and I believe he did support the idea when it was a funding plan for 200 acres for medical facilities. I have no knowledge whether he supports the funding scheme for an additional 300 acres for development. I will ask him when I next see him.

Anonymous said...

Yes, I may not support the sale. Thankyou

Mr. Sofa